What is an Overdraft Fee?

Sometimes in life, things happen that you don’t intend, like getting a parking ticket or overdrawing your account. Overdrafts occur when you don’t have enough money in your account to cover a transaction, but the transaction is still processed by your bank. Overdraft fees can add up — but they don’t have to.

At Santander, we offer tools for keeping a watchful eye on your balances, along with options for reducing or avoiding overdrafts altogether.

 
 
 
 

How Do I Prevent an Overdrawn Bank Account?

The best way to prevent overdrafts? Know how much you have by monitoring your account balance. Try these easy ideas:

  • Sign up for Online Banking to check your balance and assess your spending power.

  • Set up customized email alerts when your account balance reaches a pre-determined limit.

  • Use a paper check register to record all of your deposits and withdrawals and maintain a running balance. (Helpful hint: don't forget to include your ATM transactions).

What Are My Overdraft Election Options?

Every time you open a checking or money market savings account with us, you can choose from two overdraft options. You can authorize us to pay some or all of your overdrafts and charge the applicable overdraft fees outlined below. You can change your election at any time by visiting a branch or calling our Customer Service Center at 877-768-2265.

Click here to watch our Overdraft Election video to help you decide if your preference is “Some Overdrafts” or “All Overdrafts."

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If You Choose Some Overdrafts:

  • ATM withdrawals and one-time Debit Card purchases that overdraw your account will generally be declined.
  • All other transactions may be paid and overdraw your account.
  • You'll be charged a $35 overdraft fee for each overdraft paid item, up to six (6) per business day.

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If You Choose All Overdrafts:

  • We may pay any transaction and overdraw your account, including ATM withdrawals and one-time Debit Card purchases.
  • You'll be charged a $35 overdraft fee for each overdraft paid item, up to six (6) per business day.

We will charge you a fee, up to six (6) per business day, for each item we return unpaid due to insufficient or unavailable funds on your account. However, if you tell us to pay “Some Overdrafts,” we will generally decline ATM transactions and one-time Debit Card purchases and we will not charge you a fee. Any overdrafts that we pay must be promptly repaid by you. We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

Click here for an example of how these options work in a sample account.

How Much Are Overdraft Fees?

Overdraft fees are $35.00 each. Please see below for the four Overdraft Fee Types, as they will be described on your monthly statement, Online, and in Mobile Banking.

Overdraft Fee Types1:

  • Insufficient Funds Fee – Item Paid; charged when an item is paid that puts the account balance into a negative balance.
  • Unavailable Funds Fee – Item Paid; charged when an item is paid against funds that were deposited, but not yet available for use.
  • Insufficient or Unavailable Funds – Item Returned; whenever an item is presented against insufficient or unavailable funds and the decision is to return the item, this fee is assessed to the account.
  • Sustained Overdraft Fee – After an account has been overdrawn by any amount (negative balance) for five (5) consecutive business days, a sustained overdraft fee is assessed to the account on the sixth (6th) business day.
 

Daily Fee Limits

  • A maximum of six (6) Item Paid overdraft fees may be charged to a customer account per business day.
    • › Paid overdraft item fees apply only when a transaction posts and the resulting account balance is overdrawn more than $5.00.
  • A maximum of six (6) Item Returned fees may be charged per business day.

Example: Your checking account balance is $2.00 and you perform two transactions, one for $4.20 and one for $4.50:

Account Balance Transaction Amount Balance After Transaction is paid Overdraft Fee Charged Notes
$2.00 $4.20 -$2.20 No Amount of overdrawn balance is less than $5
-$2.20 $4.50 -$6.70 Yes Amount of overdrawn balance is greater than $5

How to Reduce Overdrafts and Overdraft Fees with Overdraft Protection

At Santander, we offer Overdraft Protection to cover shortfalls in your checking account. Overdraft Protection works by transferring available funds from your linked deposit account or an approved Overdraft Line of Credit.

  • You may link up to three (3) Santander accounts as Overdraft Protection. Linked accounts can be a combination of checking, savings,2 money market savings2 accounts, or an Overdraft Line of Credit.
  • Each day a transfer is a made, included in the transfer amount is a $12 Overdraft Protection Transfer Fee.1
  • Transfers are made when the total of all overdraft transactions plus the transfer fee is available to be transferred to your checking account.

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Deposit Account Overdraft Protection

Automatically transfer funds from your other deposit accounts to keep your checking account from going negative.

  • Link up to three deposit accounts as protection.2
  • Change the linked account priority order or remove a linked account and add others at any time.

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Overdraft Line of Credit3

Set up a revolving line of credit to automatically cover overdrafts.

  • Apply for a line of credit that covers account overdrafts by transferring into the linked checking account.
  • Pay your outstanding balance plus interest on only the amount used to cover your overdrafts.
  • Annual Fee may apply. Annual fee will vary based on the type of deposit account you have with Santander at the time the fee is assessed.

Click here for an example of how these options work in a sample account.

Useful Links And Documents

 
 
 
 

1 Refer to Personal Deposit Product Guide and Fee Schedule for which accounts apply fees and their dollar amounts.

2 You can withdraw funds from your savings or money market savings account no more than six (6) times per service fee period by computer, telephone, preauthorized transfer, check, or Debit Card. A $5 Excess Activity Fee per item applies if you exceed these limits, and if you repeatedly exceed these limits we may convert your account to a checking account.

3 Applications for a Santander Overdraft Line of Credit Account ("Account") are subject to credit approval. The Account provides overdraft protection for a Santander checking account ("Linked Account"). The fixed Annual Percentage Rate on the Account is 18.99%. Rates and other terms are accurate as of July 2, 2018 and are subject to change thereafter.

You can access your Account by special check (issued at our discretion on your request), counter withdrawal, telephone transfer ($50 minimum), Online Banking and ATM withdrawals using your Santander Debit Card. You can also advance funds via automatic transfer when your Linked Account is overdrawn.

An annual fee, if any, will be charged beginning in the first billing cycle after your Account is opened and in about the same billing cycle of each following year. The amount of any annual fee will vary based on the type of deposit account you have with Santander at the time the fee is assessed. The annual fee will be waived as long as you maintain a Santander Select, Premier or Premier Plus deposit account. The annual fee will be $25 as long as you maintain a Santander Preferred deposit account. In all other cases the annual fee will be $50.

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