Yes, your Chase checking account can go below zero, and Chase will charge you for it
When you spend more money than you have in your Chase checking account, your balance goes negative. Chase does not stop the transaction — they let it go through and then charge you a fee. The fee is called an overdraft fee, and as of now, Chase charges $35 per overdraft transaction. You can end up with multiple overdraft fees in a single day if you make several purchases while your account is overdrawn.
The key thing to understand is that going negative is not a one-time penalty. If your account stays negative, you keep owing that money back to Chase, and the longer it stays negative, the more fees can pile up. Chase will also eventually close your account if the negative balance is not resolved.
Key Takeaways
- Chase charges $35 per overdraft transaction when you spend more than your balance, and you can be charged multiple times in one day.
- You have a grace period of a few business days to bring your account back to zero before Chase reports it as overdrawn, though fees start when ready.
- Chase offers overdraft protection, which links your checking account to a savings account or credit card so transfers happen automatically instead of overdraft fees.
- If your account stays negative for too long, Chase will close it and report you to ChexSystems, which makes it harder to open accounts at other banks.
- You can contact Chase to ask them to reverse one or two overdraft fees if this is your first time, though they are not required to do so.
How overdraft fees work at Chase
When you make a purchase and your balance is not high enough to cover it, Chase processes the transaction anyway. Then they charge you $35. If you make three purchases while overdrawn, you get three $35 fees — that is $105 in fees on top of the money you already owe.
Chase allows up to four overdraft fees per day, meaning the maximum you can be charged in a single day is $140. After that, they decline further transactions to prevent the fees from stacking even higher. This is called a daily overdraft limit.
The fees hit your account when ready, which makes your negative balance even worse. If you owed $50 and got hit with one overdraft fee, you now owe $85. That larger debt can trigger more fees if you do not deposit money quickly.
The grace period before your account is reported overdrawn
Chase gives you until the end of the business day to bring your account back to zero before they officially mark it as overdrawn. This is not a free pass — overdraft fees still charge when ready — but it means you have a window to deposit money and stop additional fees from piling up.
If you deposit money before the end of that business day, Chase will not report the overdraft to ChexSystems, which is a database that other banks check when you try to open a new account. However, the overdraft fees themselves are still charged and stay on your account history.
Once your account has been overdrawn for more than a few days, Chase will report it, and that report can stay on your ChexSystems record for up to five years. This makes it much harder to open a checking account anywhere else.
Overdraft protection: how to prevent going negative
Chase offers a service called overdraft protection that automatically transfers money from another account to cover a purchase if your checking balance is too low. You link your Chase savings account, a Chase credit card, or an external bank account to your checking account. When a transaction would overdraw you, the money transfers automatically instead of triggering a fee.
If you link a savings account, Chase charges a small transfer fee (usually $10) instead of the $35 overdraft fee, so you save money. If you link a credit card, there is no transfer fee, but you are borrowing on credit, which means you pay interest if you do not pay the credit card bill in full.
You can set up overdraft protection through Chase's mobile app or online banking. Go to your account settings, find the overdraft protection option, and choose which account to link. You can turn it on or off anytime.
What to do if your account goes negative
The first step is to deposit money as soon as you can to bring your balance back to zero. The sooner you do this, the fewer additional fees you will face. If you cannot deposit the full amount right away, deposit what you can to stop the bleeding.
If this is your first overdraft or your first in a long time, you can call Chase customer service and ask them to reverse the overdraft fee. Chase does not have to do this, but they sometimes will as a one-time courtesy, especially if you have been a customer for a while and have a good history. The number is on the back of your debit card.
Do not ignore the negative balance. If it stays negative for 60 days or more, Chase will close your account and may send it to a collection agency. At that point, you will owe not just the overdraft fees but also the original negative balance, and it will show up on your credit report.
How to avoid overdrafts in the future
The simplest way is to keep a buffer in your account — money you do not spend. Many people keep $100 to $200 as a cushion so that small mistakes do not trigger overdrafts. You can also turn off overdraft protection for debit card purchases, which means Chase will decline the transaction instead of charging you a fee. This prevents you from going negative in the first place.
Set up account alerts through Chase's app so you get a notification when your balance drops below a certain amount — say, $50. This gives you a warning to deposit money before you accidentally overdraw. You can also check your balance before making a purchase, though this takes more attention.
If you struggle to keep track of your spending, consider using a budgeting app or writing down every purchase. Some people find it easier to use cash for everyday spending and save their debit card for planned purchases, because cash makes you see the money leaving your wallet.
What happens if you do not pay back the negative balance
If your account stays negative and you do not deposit money to cover it, Chase will eventually close your account. Before they do, they will try to collect the money by taking it from any deposits you make or by sending you notices asking you to pay.
Once the account is closed, Chase may send your debt to a collection agency. That agency will contact you asking for payment. If you do not pay, they can sue you, and a judgment against you can affect your ability to get loans, rent an apartment, or even get hired for some jobs.
Your negative balance will also be reported to ChexSystems, which stays on your record for five years. During that time, most banks will decline your process for a new checking account. Some banks that specialize in second-chance accounts will still work with you, but they usually charge higher fees.
Frequently Asked Questions
Can Chase freeze my account if it goes negative?
Chase can restrict your account if the negative balance is not resolved, but they do not usually freeze it when ready. They will close it if the balance stays negative for 60 days or longer. Once closed, you cannot use the account, and any deposits or automatic payments will be rejected.
Will going negative hurt my credit score?
An overdraft by itself does not show up on your credit report, so it will not directly hurt your credit score. However, if the negative balance goes to a collection agency and you do not pay, that collection account will appear on your credit report and damage your score significantly.
Can I get overdraft fees reversed?
Chase may reverse one or two overdraft fees if you call and ask, especially if you have been a customer for a while or if this is your first overdraft. There is no may provide, but it is worth asking. Be polite and explain the situation — the worst they can say is no.
What is the difference between overdraft fees and NSF fees?
An overdraft fee is charged when Chase lets a transaction go through even though your balance is negative. An NSF (non-sufficient funds) fee is charged when a transaction is declined because you do not have enough money. Chase charges $35 for both, but they happen in different situations.
If I set up overdraft protection, will I still get charged?
If overdraft protection is linked to a savings account, Chase charges a $10 transfer fee instead of a $35 overdraft fee. If it is linked to a credit card, there is no transfer fee, but you are borrowing on credit. Either way, you avoid the larger overdraft fee, but there is still a cost.