Yes, you can overdraft both accounts, but the rules and consequences differ

Most banks let you overdraft your checking account if you have overdraft protection turned on, and they will cover the shortfall—then charge you a fee, usually $25 to $35 per transaction. Your savings account is different: banks rarely allow overdrafts on savings, and if they do, the terms are stricter and the fees higher. The key difference is that checking is designed for frequent transactions, while savings is meant to hold money, not spend it.

Whether you can overdraft depends entirely on your bank's policy and what you have set up. Some banks offer overdraft protection that links your savings to your checking account, so a purchase that would overdraft checking automatically pulls from savings instead—but this still costs you a fee, usually $10 to $15 per transfer. Other banks simply decline the transaction or charge an overdraft fee without covering it. You need to know which one your bank does, because the difference between a covered overdraft and a declined transaction can affect your account standing and your credit report.

Key Takeaways

  • Checking accounts can overdraft if overdraft protection is enabled, and your bank will cover the transaction then charge you a fee of $25 to $35.
  • Savings accounts rarely allow overdrafts; most banks will simply decline the transaction or charge a non-sufficient-funds fee without covering it.
  • Linking your savings account to your checking account as overdraft protection moves money between accounts but still costs a transfer fee each time.
  • Overdraft fees compound quickly—multiple transactions in one day can each trigger a separate fee, even if your balance recovers before the day ends.
  • You can turn off overdraft protection in your bank's app or by calling customer service, which means transactions will be declined instead of charged a fee.

How overdraft protection works between checking and savings

When you link your savings account to your checking account as overdraft protection, your bank automatically transfers money from savings to checking when a transaction would otherwise overdraft. This sounds helpful, but it costs you: most banks charge $10 to $15 per transfer, and if you overdraft multiple times in one day, you pay multiple transfer fees. The transfer is usually instant, so the transaction goes through, but you lose money in the process.

Some banks offer a tiered system: they might cover small overdrafts for free up to a certain amount (like $25), then charge a fee for anything larger. Others charge a fee on every overdraft, no matter the size. Read your account agreement or call your bank's customer service line to find out which applies to you. The fee schedule is usually in the fine print, but customer service can tell you the exact amount in one call.

If you do not have overdraft protection set up, your bank will either decline the transaction or charge you a non-sufficient-funds fee without covering the purchase. A declined transaction means the store's card reader says no, and the purchase does not go through. A non-sufficient-funds fee means the bank charged you a fee for trying to spend money you did not have, but the transaction may or may not have gone through depending on your bank's policy.

Why savings accounts rarely overdraft

Banks treat savings accounts differently from checking accounts because savings is meant to be a reserve, not a spending tool. Federal law limits how many withdrawals you can make from a savings account per month—historically six, though this rule was suspended during the pandemic and has not been fully reinstated. Because of this withdrawal limit, banks do not build overdraft protection into savings accounts the way they do for checking.

If you try to withdraw more than your savings balance, your bank will simply decline the transaction. You will not get an overdraft fee on the savings account itself. However, if you have overdraft protection linked from savings to checking, and checking overdrafts, then the transfer from savings to checking will trigger a transfer fee—so you end up paying indirectly.

How overdraft fees stack up in a single day

One of the most expensive aspects of overdrafting is that fees compound. If you make three purchases on the same day and your account is overdrawn, you may be charged three separate overdraft fees—one for each transaction—even though your balance recovers before the day ends. Some banks charge the fee at the time of the transaction; others charge it at the end of the day after they have processed all transactions. Either way, multiple overdrafts mean multiple fees.

Example: Your checking account has $50. You make a $30 purchase, a $40 purchase, and a $20 purchase on the same day. If your bank covers all three and charges $35 per overdraft, you owe $105 in fees alone—more than double the amount you overspent. This is why overdraft fees are one of the fastest ways to fall further behind on an account.

Some banks offer overdraft protection that covers multiple transactions without charging a separate fee for each one, but this is rare. Most charge per transaction. Check your bank's overdraft policy in writing before you rely on it.

Turning off overdraft protection to avoid fees

You can disable overdraft protection so that transactions are simply declined instead of charged a fee. This means if you try to spend money you do not have, the purchase will not go through, and you will not be charged. No fee, but also no purchase. For many people, this is preferable to racking up overdraft charges.

To turn off overdraft protection, log into your bank's app or website and look for account settings or overdraft options. Most banks let you disable it in seconds. If you cannot find it online, call customer service and ask them to turn off overdraft protection on your checking account. They will confirm the change immediately. Some banks require you to call; others let you do it yourself.

Keep in mind that turning off overdraft protection does not erase fees you have already been charged. If you have pending overdraft fees, contact your bank and ask if they will waive them, especially if this is your first time overdrafting or if you have been a customer for a long time. Banks sometimes waive one or two fees as a courtesy, though they are not required to.

What happens if you overdraft repeatedly

If you overdraft your account multiple times in a short period, your bank may close your account or flag you in a system called ChexSystems, which other banks use to screen new customers. A ChexSystems report stays on file for five years and can make it difficult to open a new checking account elsewhere. Banks see repeated overdrafts as a sign of financial instability or mismanagement.

Before your bank closes your account, they will usually send you a warning letter or call you. If you receive one, contact your bank immediately and ask what you need to do to keep the account open. Some banks will work with you if you set up a plan to stop overdrafting. Others will close the account regardless.

If your account is closed due to overdrafts, you can still open a new account at a different bank, but you may need to use a second-chance checking account, which has higher fees and lower limits. The better move is to prevent repeated overdrafts by turning off overdraft protection or by monitoring your balance closely.

Overdraft fees versus declined transactions

When you have overdraft protection on, your bank covers the transaction and charges you a fee. When you have it off, the transaction is declined and you pay nothing. The choice between these two depends on your situation. If you overdraft occasionally and can afford the fee, overdraft protection might be worth it to avoid the embarrassment of a declined card at checkout. If you overdraft frequently, turning it off will save you hundreds of dollars per year.

Some banks offer a middle ground: a grace period where small overdrafts are free, or a daily overdraft limit that you can exceed without a fee. Ask your bank if they offer either of these options. If they do, you can keep overdraft protection on without paying a fee every time you go slightly over.

Frequently Asked Questions

Can my savings account go negative?

No. Banks do not allow savings accounts to go negative. If you try to withdraw more than your balance, the transaction will be declined. Your savings account cannot overdraft the way a checking account can.

If I overdraft my checking account, does it affect my savings account?

Only if you have overdraft protection linked from savings to checking. In that case, your bank transfers money from savings to checking to cover the overdraft, and you pay a transfer fee. If you do not have this link set up, overdrafting checking does not touch your savings.

How long do overdraft fees stay on my account?

Overdraft fees are deducted from your account immediately or within one business day. They do not disappear on their own. If you want them removed, you must contact your bank and ask them to waive the fee. Some banks will do this once or twice; others will not.

Will overdrafting hurt my credit score?

Overdrafting itself does not show up on your credit report. However, if your bank sends your account to a collection agency because you owe them money from overdraft fees and do not pay, that collection account will damage your credit. Overdraft fees are a debt to your bank, just like any other.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is a service your bank offers to cover transactions when you do not have enough money. Overdraft fees are the charges your bank levies when you use that protection. You can have one without the other: some banks charge overdraft fees without offering protection, and some offer protection but charge a fee for using it.