Yes, Chase Total Checking allows overdrafts, but only if you sign up for overdraft protection
Chase Total Checking does not automatically overdraft your account. If you try to spend more money than you have, the transaction will be declined at the point of sale or ATM. However, Chase offers overdraft protection — a service you can turn on that allows transactions to go through even when your balance is negative. You have to opt in to this service; it is not turned on by default.
When overdraft protection is active and you overdraft, Chase charges you a fee for each transaction that overdraws your account. The fee amount and the number of fees you can incur in a day both vary, so you should confirm the current terms with Chase directly before relying on this feature.
Overdraft protection is different from a traditional overdraft line of credit. It is a convenience feature that lets individual transactions process when your balance is low, not a loan you borrow against. You pay per transaction, not interest on a borrowed amount.
Key Takeaways
- Chase Total Checking requires you to opt in to overdraft protection; without it, transactions will straightforward be declined if your balance is too low.
- When overdraft protection is on, each transaction that overdraws your account triggers a separate fee from Chase.
- You can turn overdraft protection on or off through your Chase online banking portal or by calling Chase customer service.
- Overdraft fees add up quickly if you overdraft multiple times in one day, so monitoring your balance remains important even with protection turned on.
How to turn overdraft protection on or off
You control overdraft protection through your Chase online banking account. Log in to Chase.com or the Chase mobile app, go to your account settings, and look for the overdraft protection option. You can toggle it on or off from there. The change usually takes effect when ready, though Chase recommends allowing up to one business day for the change to fully process.
If you are not comfortable using online banking, you can call Chase customer service at the number on the back of your debit card and ask them to turn overdraft protection on or off for you. They will confirm the change before ending the call.
Chase also sends you a notice when you first open a Total Checking account explaining overdraft protection and asking whether you want it. If you do not respond, the account defaults to overdraft protection turned off.
What happens when you overdraft
When you make a transaction that would take your balance below zero and overdraft protection is on, the transaction goes through. Your account balance becomes negative. Chase then charges you an overdraft fee for that transaction. If you make multiple transactions in one day that all overdraft your account, you pay a fee for each one, up to a daily limit that Chase sets.
Chase will attempt to recover the negative balance from your next deposit. If you deposit money before the end of the business day, Chase applies it to your negative balance first. You do not owe interest on the overdraft amount itself — only the per-transaction fees.
If your account stays negative for more than a certain number of days, Chase may close the account. The exact timeline varies, so contact Chase if your account has been negative for more than a few days.
Alternatives to overdraft protection
If you want to avoid overdraft fees altogether, you can keep overdraft protection turned off. When it is off, transactions that would overdraft straightforward decline. You will not be charged a fee, but the transaction will not go through. This is the safest option if you want to spend only what you have.
Another option is to link a savings account or another Chase checking account to your Total Checking account as a backup. If you overdraft, Chase can transfer money from the linked account to cover the shortfall. This transfer may have a small fee, but it is often lower than an overdraft fee. You set this up through your online banking settings under "Transfer Options" or "Linked Accounts."
Some people also set up low-balance alerts through their Chase app. When your balance drops below an amount you choose, Chase sends you a text or email notification. This gives you time to deposit money or adjust your spending before you risk overdrafting.
The cost of overdraft fees
Chase charges a fee each time a transaction overdraws your account when overdraft protection is on. The fee amount is set by Chase and can change, so you should check your account agreement or call Chase to learn the current fee. Chase also sets a daily limit on how many overdraft fees you can be charged in one day — typically three to four fees per day, though this varies.
If you overdraft five times in one day, you will only pay fees for the first three or four transactions, depending on Chase's current limit. The remaining transactions will be declined. This daily cap is meant to prevent fees from spiraling out of control, but it also means you could still face significant charges if you overdraft multiple times.
Overdraft fees are separate from any other fees on your account. If you also have a monthly maintenance fee on your Total Checking account, you will pay both the maintenance fee and any overdraft fees that month.
How overdraft protection differs from overdraft lines of credit
Some banks offer overdraft lines of credit, which work like a small loan attached to your checking account. If you overdraft, the bank lends you money automatically, and you pay interest on the borrowed amount. Chase Total Checking does not include an overdraft line of credit — it only offers overdraft protection, which is fee-based, not interest-based.
This means overdraft protection is simpler but potentially more expensive if you overdraft frequently. With a line of credit, you would pay interest on the amount borrowed, which might be less than multiple overdraft fees if you stay negative for a long time. With overdraft protection, you pay a flat fee per transaction, regardless of how long your account stays negative.
Frequently Asked Questions
What is the overdraft fee on Chase Total Checking?
Chase sets the overdraft fee amount, and it can vary by region and account type. Contact Chase directly or check your account agreement to learn the current fee. You can also see the fee listed in your account settings under overdraft protection details.
Can I overdraft at an ATM with Chase Total Checking?
Yes, if overdraft protection is on, you can withdraw cash from an ATM even if your balance is negative. The ATM will dispense the cash, and Chase will charge you an overdraft fee. ATM overdrafts count toward your daily overdraft fee limit.
Will Chase close my account if I overdraft?
Chase may close your account if it stays negative for an extended period without being brought back to zero. The exact timeline is not publicly specified, but accounts negative for more than 30 days are at risk. Contact Chase when ready if your account has been negative for more than a few days.
Can I set a limit on how much I can overdraft?
Chase Total Checking does not let you set a maximum overdraft amount. Your account can go negative by any amount, and you will pay a fee for each transaction that causes the overdraft. The only limit is the daily cap on how many fees you can be charged in one day.
Does overdraft protection affect my credit score?
Overdrafting and paying overdraft fees does not directly affect your credit score. However, if your account stays negative long enough that Chase sends it to a collection agency, that can damage your credit. Paying overdraft fees on time does not help or hurt your credit either.