Overdraft is a two-edged sword. It can result in debt that affects your finances and come in handy when you are short of cash and need to make an urgent purchase. You need overdraft protection to overdraw your account. Some banks offer you this benefit after a lengthy application process, while others give it to you on a platter or without delay.
Banks that let you overdraft right away are:
- Wells Fargo
- PNC Bank
- Bank of America
- SunTrust Bank
- BB&T Bank
Not all banks offer overdraft protection. So before you think of applying for this benefit, you need to do your research. For those who find themselves in situations where they are in urgent need of cash, you may want to center your research on banks that let you overdraft right away. I have provided you with a list of some of these banks below.
Can You Withdraw Money From ATM With Overdraft Protection?
Banks That Let You Overdraft Right Away
You need some urgent cash, but you don’t want to pay extra fees and charges.
I understand.
Most people wouldn’t write a check or carry out an ATM withdrawal when they are short of cash and need to make an urgent purchase or transaction. However, bills and expenses don’t always wait until payday.
In fact, they have this annoying way of raring their heads just before you have the funds to settle them. So, when you need urgent money, you have to find banks that offer quick overdraft services.
Most banks have some kind of overdraft facility that enables you to spend more than you have in your checking account. More than peace of mind, you avoid the embarrassment of a bounced check or a declined debit card transaction. But, the convenience of overdraft can push your bank account balance into the red and cost you $35 in overdraft fees. If you aren’t careful, you may find yourself deep in debt due to multiple overdraft fees.
In this post, I have outlined banks that let you overdraft right away. But before we proceed, let’s look at what an overdraft is.
What Is an Overdraft?
An overdraft allows you to borrow money via your current account. You’ll go into an overdraft if you initiate a withdrawal or purchase that takes you below what you have in your checking account. Put differently; if your account drops below $0, you are in your overdraft.
Difference Between Overdraft Coverage and Overdraft Protection
If you are looking for an overdraft, you’ll want to ensure that you understand how overdraft protection differs from its counterpart, overdraft coverage. Put simply; overdraft coverage involves your bank advancing cash to make a transaction happen when you don’t have enough funds in your checking account. In turn, you are charged a fee for each overdraft item, which can sometimes (significantly) surpass the cost of the transaction. For instance, many banks will charge an overdraft fee of $35 or so, which can create the notorious $39 cup of coffee.
But, overdraft coverage at some banks also assures you that your bank account will keep functioning even when your balance is below zero. United States Bank’s Standard Overdraft Coverage allows you to overdraft at an ATM so that you can get cash when you need it urgently. It will also pay for check and bill payment transactions, which can help you escape even costlier bounced payments and late fees.
What Bank Has the Highest Overdraft Limit?
The max amount you are allowed to overdraft varies for each bank. Your overdraft limit will depend on many factors, including:
- Average balance
- Account age
- Linked account
Some banks charge $35 for each overdraft item and allow up to three overdrafts each day, for a daily limit of $105. Other banks have higher daily overdraft limits and let customers overdraft up to 6 times daily. These banks include SunTrust, BBVA Compass, and Regions Bank.
Banks That Allow Overdrafts:
The truth is, an overdraft is good. But, you need to ensure that you don’t overdo it. If you find yourself in a dire situation and need to overdraft, here are some banks that allow it.
Wells Fargo: There is a standard overdraft fee of $35 per item, a limit of 3 overdrafts each day
PNC Bank: There is a standard overdraft fee of $36 per item and a limit of 4 overdrafts per day. The bank charges a fee of $7 for every day an account is overdrawn for more than five consecutive days, up to $98.
Bank of America: There is a standard overdraft fee of $35 per item and a limit of 4 overdrafts per day
SunTrust Bank: There is a standard overdraft fee of $36 per item and a limit of 6 overdrafts per day.
BB&T Bank: There is a standard overdraft fee of $36 per item and a limit of 6 overdrafts per day. The bank will charge an extra $36 if an account is overdrawn for seven days.
The good news is that most of the highlighted institutions waive the overdraft fee if you can bring your account back to positive before the cut-off time on the same business day.
How to Withdraw Money From an Overdraft Account?
How Soon Can I Use My Overdraft?
You can register for overdraft protection any time you wish. But, many banks will take several days to process your application. These banks will also subject you to a waiting period of 7 to 30 days before giving you access to an overdraft. This is peculiar for new account holders.
Because of this, it can be worthwhile to shop around at smaller banks and study their overdraft policies before opening an account. For instance, Community National Bank in Kansas provides new consumer checking accounts with a $100 introductory overdraft privilege limit at account opening that will be raised to $600 after 30 days in good standing. There are also ways to overcome the overdraft waiting period too.
For instance, Regional Bank requires consumers to wait 14 days before they can start using overdraft privileges. But, if you can get a new credit card from Regions and link that to your checking account for overdraft protection, you can begin overdrafting immediately after you activate your new credit card.
