Core Bank makes it easy to avoid overdrafts or declined transactions with overdraft protection. Find the plan you need and learn more today!
What Is Overdraft Protection?
Overdraft protection allows transactions exceeding the balance in your checking account to be approved and can save you money on hefty overdraft fees. When you enroll in overdraft protection, the additional money you need to cover a transaction is transferred from a linked bank account, which can be a savings account, secondary checking account, credit card, or line of credit.
You may still receive a fee for the transfer, but it’s typically a cheaper amount than an overdraft fee. If you don’t have enough money in your checking account, checks will clear, and ATM and debit card transactions will still go through with overdraft protection.
Ways to Avoid Overdrafts
A few ways to avoid overdraft fees are:
- Balancing your checkbook
- Paying with cash or debit card
- Creating a buffer
- Linking your checking account to another account
- Signing up for email and text alerts
Monitoring your account balance, transactions, and automatic payments can give you a good insight into how much money is in your account.
Keeping a buffer or cushion of money in your checking account and never dipping into it will prevent your account from being overdrawn. Signing up for email or text alerts can help show you when your balance is low in your account and will give you an opportunity to add funds to it.
Overdraft Protection Plans
Automatic Balance Transfers
This allows automatic transfers from your other Core Bank Accounts
- No annual fee
- Per transfer fee $5
- You choose the transfer balance
- Transfers the amount needed —you choose the transfer increments
Overdraft Protection Plan
This plan has a revolving line of credit designed to protect you from accidental overdrafts and can help you cover short-term cash needs.
- No advance fee
- Automatically transfers the amount needed
Overdraft Protection FAQs
What is an overdraft fee?
An overdraft fee is charged when you don’t have enough funds in your bank account to fully cover a transaction you’ve made. Instead of declining the payment, your bank may hand over the money for the transaction and charge you a fee.
Is it good to have overdraft protection?
There are some drawbacks when you have overdraft protection. You’ll still have to pay the overdraft fee and you can still overdraw your account if you’re enrolled in overdraft protection.
How long can an account be overdrawn?
Typically, you have 5 to 7 business days to fix the balance in your account before you accrue extended overdraft fees.