You might have been curious about Wells Fargo’s overdraft fees if you have a checking account with them. When you overdraw your account, many banks charge fees.
Does Wells Fargo charge daily overdraft fees?
To better grasp how overdraft fees Wells Fargo operates, we will dive into this issue in this post.
How does Wells Fargo charge overdraft fees?
Wells Fargo levies overdraft fees like many other banks when you withdraw more cash from your checking account than is available. If you don’t watch your spending, these costs can pile up quickly and strain your finances. Wells Fargo announced in July 2018 that it would stop charging overdraft fees for transactions that overdraw your account by under $5. This means that Wells Fargo won’t charge you an overdraft fee if you make a $20 purchase but only have $18 in your account.
What determines the overdraft fees charged by Wells Fargo?
It’s crucial to remember that Wells Fargo’s overdraft fees policy could change based on your checking account type and the particular terms and conditions associated with that account. Reviewing your account agreement or contacting Wells Fargo is always a brilliant idea to learn the specifics of their overdraft fees.
Wells Fargo limits the number of overdraft fees they charge daily. As of April 2023, Wells Fargo has a limit of three overdraft fees daily. This means that Wells Fargo will only assess you for three overdraft fees for any transactions that overdraw your account on the same day. This lessens the penalties you pay if you unintentionally overdraw your account.
How to Protect Yourself from Wells Fargo Overdraft Fees
Manage your checking account to avoid overdrawing it. It’s important to keep in mind, though, that overdraft fees can still add up quickly. Set up account notifications, monitor your account balance, and frequently review your transaction history to keep track of your spending and avoid overdraft costs.
You have a few overdraft protection options from Wells Fargo in addition to the $5 threshold and the daily overdraft fee cap. You can link an additional Wells Fargo account, such as a credit card or savings account, to your checking account with overdraft protection. If you overdraw your checking account, Wells Fargo will automatically move money from your savings account, possibly preventing you from incurring overdraft fees.
Remember that depending on the type of account you link and the terms and conditions of that account, overdraft protection can incur fees, such as transfer or interest charges. Understand the conditions before choosing to use overdraft protection.
Summary
While Wells Fargo charges overdraft fees, they do not charge overdraft fees daily for transactions that overdraw your account by less than $5. Wells Fargo also has a limit on the number of overdraft fees they charge per day and offers overdraft protection options that you can choose to opt into. However, reviewing your account agreement and understanding its specific terms and conditions is important to avoid being taken advantage of or charged overdraft fees unfairly.
