Banking Checking Accounts

How To Get Overdraft Fees Refunded (It’s Possible, but Switching Banks Might Be Better)

You may be able to get overdraft fees refunded with a single phone call, but avoiding them is even better.

By Ben Walker, CEPF, CFEI®
and Lara Vukelich

Edited by Jess Ullrich

Updated Feb. 19, 2025

Overdraft fees can be expensive and annoying. They are charged by some banks when your account balance goes negative.

For example, let's say you have your electric bill set up to be paid automatically from your checking account each month. This month it's surprisingly high at $125, but you only have $100 in your checking account. This would be considered an overdraft and depending on your bank, might trigger an overdraft fee. On average, these fees are $35 per transaction and can really add up and hit you hard when you're already in a difficult place financially.

Once an overdraft fee has been assessed, the only recourse is to pay it or call and ask for it to be refunded.

Editor's note

The Consumer Financial Protection Bureau (CFPB) issued a ruling in 2024 that will prevent banks and credit unions with over $10 billion in assets from charging more than $5 per overdraft. It will also require institutions to outline the terms of overdraft borrowing more explicitly, building on legislation already in place that requires consumers to opt-in to overdraft protection in order to be permitted to overdraw their balances. The rule capping fees will take effect in October 2025.

How to get overdraft fees refunded: 4 simple steps

Here are four steps to follow to help you get an overdraft fee refunded:

1. Get your facts straight

Before you can make a plea for mercy to your bank, you'll want to make sure your figures match theirs. Calculate how many overdraft fees you were charged and the exact figure you're asking to be refunded. It also helps to know the dates when the fees were assessed and which charges led to the fees.

Having all of this information on hand can make it easier to communicate quickly with a customer service representative from your bank. To find your bank account transactions and fees, check your bank statements, either in your online account or through mailed statements.

2. Develop a case

Now that you have your figures in hand, develop a case for why your overdraft fees should be refunded. If you're a long-time customer who doesn't have a history of overdrafts, use this to your advantage when talking to a bank representative. You should also point out if you have other accounts with the bank, such as a savings or mortgage. They may be more willing to refund your overdraft fee if they have a strong incentive to retain you as a customer.

Prepare to negotiate. If you were charged four overdraft fees and the bank won't refund them all, ask if they will at least refund half of them. Getting some of your money back is better than none at all.

3. Contact your bank

Once you're ready, it's time to contact your bank. Phone calls are typically the best way to request a refund of overdraft fees, but it might be possible to send a secure message as well. Speaking over the phone gives you the chance to connect with a representative more personally and make your case.

The best number to use is your bank's general customer service line, which you can find on the bank's website or your bank statement.

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Once you're ready to reach out to someone from your bank, Rocket Money offers a helpful (free) conversation guide to walk you through the process. If you have a Rocket Money account, all you have to do is open the app and navigate to the "Request a refund" button, then click "Get started" for the script. We would use this if we were requesting an overdraft refund because it can be difficult and awkward to know what to say, especially because it's offered with the free version of the budgeting app.

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4. Be persistent

The representative you speak with may immediately agree to your request and initiate a refund of your overdraft fees. But you could meet some resistance. If so — don't give up! If the agent you're speaking with won't budge, consider talking to a supervisor or calling in again and speaking to someone else.

Remember to cite your good relationship (if applicable) with the bank and be respectful. If you got charged an overdraft fee for the first time, you could also mention this.

How much do overdraft fees cost?

The Center for Responsible Learning reports that the typical overdraft fee is $35, which is often much higher than what a bank actually has to pay for an overdraft transaction. This might not seem like a high amount for some people, but depending on your situation, it can be incredibly annoying or even financially disastrous.

Overdraft fee examples

Here are a few popular financial institutions and their overdraft fees. In good news for consumers, there has been a trend in recent years for these banks to reduce or eliminate overdraft fees. For example, Bank of America reduced its overdraft fees to $10 from $35 in 2022, and Citi eliminated overdraft fees in early 2024.

Bank	Overdraft fees
Bank of America	$10 per item for transactions over $1 (max 2 fees per day)
Chase	$34 per item if your account is overdrawn by more than $50 at the end of business day. (max 3 fees per day)
Citi	$0
U.S. Bank	$36 per item for transactions over $5 and only if your account is overdrawn by more than $50 at the end of the business day. (max 3 fees per day)
Wells Fargo	$35 per item for transactions over $5. (max 3 fees per day)

Checking accounts with no overdraft fees

Some banking accounts make it super easy to avoid overdraft fees because they don't have any. In addition to Citi, which is mentioned above, here are a few more checking accounts that don't charge overdraft fees.

Discover Cashback Debit	Visit Discover
SoFi Checking and Savings¹ <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>	Visit SoFi
Axos ONE®	Visit Axos
Chime®	Visit Chime
Current spending account² <p>Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to <a href="https://current.com/overdraft_protection_terms_of_service/" target="_blank" rel="noopener noreferrer">Fee-free Overdraft Terms and Conditions</a>. Individual Current Accounts only.</p>	Visit Current
Ally Spending account	Visit Ally
Betterment Checking	Visit Betterment
Wealthfront Cash Account	Visit Wealthfront
Capital One 360 checking	Visit Capital One 360

See more checking accounts with no overdraft fees.

5 tips for avoiding overdraft fees in the future

Asking for a refund after the fact is a short-term solution. A good long-term strategy involves learning how to prevent them from happening in the first place. If you want to help avoid future overdraft fees, consider these tips:

1. Track your balance

If you know how much money you have in your bank account, you're less likely to use more than what's available and end up with an overdraft fee. These days, it's easy to track your available balance and financial health with online accounts, mobile banking, or by simply calling your bank.

Consider using a budgeting app like Quicken Simplifi to keep an eye on your finances and set financial goals at the same time.

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2. Turn off overdraft protection

If you don't want to deal with overdraft fees, opt out of your bank's overdraft protection service. Lenders typically have this protection in place to make sure you can cover your purchases even if you don't currently have enough money in your bank account. But of course, it often comes with fees.

Fortunately, federal regulations are in place that allow you to opt out of overdraft protection if you want to. If you opt-out, your ATM withdrawals and debit card purchases will be declined if you have insufficient funds instead of causing an overdraft or forcing you to have a negative balance.

3. Set up alerts

With online banking and mobile apps, you often have notification and alert settings you can customize for a more personalized banking experience. In most cases, you're able to set alerts for when your bank account balance crosses a certain threshold. Low balance alerts could help you avoid spending more than what's available in your account and steer clear of overdraft fees.

4. Link another account

Some banks allow you to link backup accounts to your checking account to decrease the risk of an overdraft. This could include another checking account, savings account, credit card, or line of credit.

5. Switch banks

If you don't want to deal with overdraft fees, consider switching to a bank that doesn't charge overdraft fees.

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Earn up to 3.80% APY³ SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>. and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.SoFi members with Eligible Direct Deposit can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.80% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>. FDIC Insured.⁵ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

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FAQs

Can I get an overdraft fee refunded?

Yes, it's possible to get your bank to refund overdraft fees. It's often as simple as contacting your bank and asking them to refund the fees, though it likely helps to have a good relationship with the bank, such as making your payments on time and rarely having overdraft fees.

Can I get an NSF fee refunded?

While bank policies vary, you might be able to get a non-sufficient funds (NSF) fee refunded through an NSF reversal. To get an NSF fee refunded, contact your bank, explain what happened, and ask for a refund. Some banks may be willing to work with you, especially if it's the first time you've incurred the fee or if you have multiple accounts with your bank.

What fees can you negotiate with your bank?

Most bank charges, including overdraft fees, insufficient funds fees, and late fees, are negotiable. Banks are businesses, but the customer is part of the business, so it's not uncommon for bank representatives to waive or refund fees to keep customers happy. This doesn't mean you'll always be able to negotiate bank fees in your favor, but it doesn't hurt to try.

Can an overdrawn bank account hurt your credit score?

An overdraft itself won't affect your credit score since checking accounts don't appear on your credit report. But if you don't pay the fee and it's sent to collections, your score could be negatively impacted.

Bottom line

Overdraft fees can be annoying and downright frustrating — but there are ways to avoid them or have them refunded if they've already been charged. Unfortunately, overdraft charges are common among accounts from many traditional banks, so it's important to take the proper precautions and steps to ensure you don't have to worry about getting charged.

But if you don't want to deal with overdraft fees at all, consider doing business with one of the best banks that don't include these fees with their accounts. This is likely the best way to avoid overdraft fees since there's no chance for them to happen in the first place.