How to avoid overdraft fees

An overdraft happens when you spend more money than you have in your bank account. Your bank may still let the payment go through — but then charge you a fee for it. That fee is usually between $25 and $35. Some banks charge it more than once a day.

Those fees add up fast. If you are already stretched thin, an overdraft fee can make a tough week even harder. The good news is there are real steps you can take to avoid them.

First, keep a close eye on your balance. Check your account every day or two. Most banks have a free app that makes this easy. Knowing where you stand helps you avoid surprises.

Set up low-balance alerts. Many banks let you turn on text or email alerts when your balance drops below a number you choose. Set it at $50 or $100 — whatever gives you enough warning to act before you go negative.

Leave a small cushion if you can. Even $20 or $30 sitting in your account as a buffer can protect you. Treat it like money that is not there. It is just your safety net.

Ask your bank about overdraft protection options. Some banks let you link your checking account to a savings account. If you overdraw, money moves over automatically. This may come with a small fee, but it is usually much less than a standard overdraft fee.

You can also opt out of overdraft coverage for debit card purchases. If you do this, your card will simply be declined when funds run low. That can feel embarrassing in the moment, but it stops the fee from hitting. You can call your bank or go into a branch to ask about this option.

Consider switching to a bank or credit union that does not charge overdraft fees. Some online banks and credit unions have accounts with no overdraft fees at all. These accounts are often free to open and have no monthly fees either.

If you do get hit with an overdraft fee, it is okay to call your bank and ask for a one-time courtesy waiver. Many banks will remove the fee once, especially if you do not have a history of overdrafts. Just be polite and ask directly.

Overdraft fees are frustrating, but they are not unavoidable. Small habits — like checking your balance regularly and setting up alerts — can make a real difference over time.