Yes, you can overdraft your checking account — but only if your bank allows it
Whether your bank lets you spend more money than you have depends on two things: whether you have overdraft protection set up, and whether your bank offers it. Most banks do offer overdraft services, but you have to opt in — they won't automatically let you go negative. If you try to spend more than your balance and you don't have overdraft protection, the transaction will be declined at the point of sale, and you won't be charged a fee for the declined transaction itself.
If you do have overdraft protection turned on and you spend more than you have, the bank will cover the difference. You'll then owe that money back to the bank, plus an overdraft fee — usually between $25 and $35 per transaction, though this varies by bank. Some banks charge multiple fees if you stay negative for several days in a row.
Key Takeaways
- Overdraft protection is optional and must be turned on in your bank's app or by calling — banks do not automatically allow overdrafts.
- When you overdraft with protection on, the bank covers the purchase and charges you a fee, usually $25 to $35 per transaction.
- Without overdraft protection, your card or check will straightforward be declined, and you won't be charged an overdraft fee.
- Some banks offer overdraft protection only for certain types of transactions (like debit card purchases) and not others (like checks or ACH transfers).
- You can turn overdraft protection on or off at any time through your bank's website, app, or by phone.
How overdraft protection actually works
When you have overdraft protection enabled and you try to spend more than your balance, here's what happens: the bank processes the transaction anyway. Your account goes negative — meaning you now owe the bank money. The bank then charges you an overdraft fee for allowing this to happen.
The fee is separate from the amount you overspent. If you overdraft by $5 and your bank charges a $35 fee, you now owe $40 total. If you make three separate overdraft transactions in one day, you might be charged three separate fees — one for each transaction — even though you only went negative once. Some banks cap the number of overdraft fees you can be charged in a single day, but this limit varies.
The overdraft fee is charged to your account when ready or within one business day. If you don't deposit money to cover both the overdraft amount and the fee, you may be charged additional fees for staying negative, sometimes called a "sustained overdraft fee" or "extended overdraft fee."
The difference between overdraft protection and overdraft fees
Overdraft protection is the service itself — the bank's agreement to cover transactions even when you don't have enough money. Overdraft fees are what you pay for using that service. These are two separate things, and it's important to understand the difference.
Some banks also offer overdraft lines of credit, which work differently. Instead of charging a per-transaction fee, the bank treats the overdraft like a small loan and charges you interest on the amount you owe. This can be cheaper or more expensive than per-transaction fees, depending on how much you overdraft and for how long. Ask your bank whether they offer this option.
Which transactions can be overdrafted
Not all transactions can be overdrafted, even if you have overdraft protection turned on. Most banks allow overdrafts for debit card purchases and ATM withdrawals. Many also allow overdrafts for checks you write. However, ACH transfers (electronic transfers to other accounts) and automatic bill payments are often not covered by overdraft protection — these transactions will straightforward be declined if you don't have enough money.
Your bank's rules about which transactions can overdraft are in your account agreement or on their website. Call your bank or log into your account to find out exactly which types of transactions they allow to overdraft. This matters because it affects how you might accidentally go negative.
How to turn overdraft protection on or off
Overdraft protection is something you control. You can turn it on if your bank offers it, and you can turn it off at any time. To change your overdraft settings, log into your bank's website or mobile app and look for account settings, overdraft options, or overdraft preferences. The exact location depends on your bank.
If you can't find it in the app, call your bank's customer service line — the number is on the back of your debit card or on your bank statement. Tell them you want to turn overdraft protection on or off, and they can do it over the phone. Some banks require you to visit a branch in person, but most handle this by phone or online.
When you turn overdraft protection off, your debit card and checks will be declined if you don't have enough money, but you won't be charged an overdraft fee. This is the safer option if you want to avoid fees, because you'll know when ready that you don't have money instead of finding out later when the fee appears.
What happens if you stay overdrafted for days or weeks
If you overdraft and don't deposit money to cover it, the bank will keep charging you fees. Some banks charge a fee every day you stay negative. Others charge a fee every few days. A few charge only one fee per overdraft incident, no matter how long you stay negative — but this is less common.
If you stay overdrafted long enough, your bank may close your account and send the debt to a collection agency. This can damage your credit and make it harder to open a bank account elsewhere. If you find yourself overdrafted, deposit money as soon as you can to stop the fees from piling up.
Alternatives to overdraft protection
If you're worried about overdrafting, you have other options. The simplest is to keep a small cushion in your account — $50 or $100 that you don't spend. This gives you a buffer if you miscalculate your balance.
Another option is to link a savings account to your checking account for overdraft protection. Instead of charging you a fee, the bank will automatically transfer money from savings to checking if you go negative. You may be charged a small transfer fee (usually $5 to $10) instead of a large overdraft fee. This is cheaper than overdraft protection if you overdraft occasionally.
You can also set up low balance alerts in your bank's app. The bank will send you a text or email when your balance drops below a number you choose — say, $100. This gives you a warning before you accidentally overdraft.
Frequently Asked Questions
Can my bank overdraft my account without my permission?
No. Banks must get your permission to turn on overdraft protection for debit card purchases and ATM withdrawals. However, banks can overdraft your account for checks and ACH transfers without your permission — federal law treats these differently. If you want to prevent any overdrafts, you must turn off overdraft protection entirely.
Will an overdraft hurt my credit score?
An overdraft itself does not appear on your credit report and will not hurt your credit score. However, if you stay overdrafted long enough that the bank sends your debt to a collection agency, that collection account will appear on your credit report and will damage your score.
What's the difference between overdraft and a declined transaction?
With overdraft protection on, the transaction goes through and you're charged a fee. Without overdraft protection, the transaction is declined and you're not charged a fee. Declined transactions may be embarrassing at checkout, but they cost you nothing.
Can I overdraft at an ATM?
Yes, if you have overdraft protection turned on. The ATM will dispense the cash and your account will go negative. You'll be charged an overdraft fee, usually the same amount as a debit card overdraft fee.
If I overdraft, how long do I have to pay it back?
There is no set important date — the bank will not force you to pay it back by a certain date. However, the bank will keep charging you fees every day or every few days until you do pay it back. If you stay negative for weeks or months, the bank may close your account and send the debt to collections.