Citizens Bank offers overdraft protection, but it is not automatic and the terms depend on your account type and history
Citizens Bank does allow overdrafts on checking accounts, but the bank does not turn it on by default. You have to request it, and whether the bank approves you depends on your account standing and the specific product you hold. Once active, overdraft protection lets you spend beyond your balance—up to a limit the bank sets—but each overdraft costs you a fee, and the amount you can overdraw varies by account.
The mechanics matter here because Citizens Bank treats overdrafts differently depending on how they happen. A transaction you authorize in person or online (like a debit card purchase) goes through one set of rules. An automatic payment or check that bounces goes through another. Understanding which applies to you prevents surprises when your balance dips below zero.
Key Takeaways
- Citizens Bank does not automatically include overdraft protection; you must request it through your bank or online account.
- Overdraft fees at Citizens Bank are charged per transaction, and the fee amount depends on whether the overdraft is covered or the transaction is declined.
- Your overdraft limit is set by the bank based on your account history and is not the same as your credit limit.
- Overdraft protection covers debit card purchases and ATM withdrawals only if you have opted in; checks and automatic payments follow different rules.
How to set up overdraft protection on your Citizens Bank account
To turn on overdraft protection, log into your Citizens Bank online account or mobile app and look for account settings or preferences. The exact location varies by whether you use Citizens Bank's standard checking account, a premium account, or a student account, but the option is usually labeled "Overdraft Protection" or "Overdraft Services." You can also call Citizens Bank customer service or visit a branch in person to request it.
When you request overdraft protection, the bank reviews your account. They look at how long you have held the account, your transaction history, and whether you have maintained a positive balance. If approved, Citizens Bank assigns you an overdraft limit—typically ranging from a few hundred to a few thousand dollars, though the bank does not publish exact thresholds. This limit is separate from any credit line you may have.
Once approved, overdraft protection is active when ready. You do not need to do anything else. The next time a transaction would overdraw your account, the bank covers it instead of declining it, and you are charged a fee.
What Citizens Bank charges when you overdraft
Citizens Bank charges a fee each time you overdraft, and the amount depends on whether the overdraft was covered or declined. As of the most recent public information, Citizens Bank charges a fee for each covered overdraft transaction (one where the bank paid it) and a separate, usually smaller fee for each declined transaction (one the bank refused). The exact amounts change periodically, so confirm the current fees by logging into your account, calling customer service, or checking the fee schedule on Citizens Bank's website.
The fee is charged to your account when ready or within one business day. If you overdraft multiple times in a single day, you may be charged multiple fees—one per transaction. Citizens Bank does cap the total overdraft fees you can be charged in a single day, but the cap varies by account type. Some accounts have a daily limit of two or three overdraft fees; others allow more.
Overdraft protection is not information programs. If you overdraft $200 and are charged a $35 fee, you now owe the bank $235 plus any interest that accrues if you do not repay it quickly. The longer the overdraft sits, the more it costs.
Which transactions trigger overdraft protection and which do not
Not every transaction that could overdraw your account is covered by overdraft protection. Debit card purchases and ATM withdrawals are covered if you have overdraft protection turned on. A purchase at a store or online will go through even if your balance is insufficient, and you will be charged an overdraft fee.
Checks and automatic bill payments (ACH transfers) are handled differently. These transactions are not covered by overdraft protection in the same way. If a check or automatic payment would overdraw your account, Citizens Bank typically declines it rather than covering it. You are charged a fee for the declined transaction, and the check or payment fails. The person or company you were paying does not receive the money, and you may face late fees from them as well.
This distinction matters because it means overdraft protection does not protect you from all overdrafts. You can still bounce a check or miss an automatic payment even with overdraft protection active. The protection applies mainly to point-of-sale transactions where you swipe a card or withdraw cash.
The difference between overdraft protection and a line of credit
Overdraft protection and a line of credit are not the same thing, though Citizens Bank offers both. Overdraft protection is a service that covers individual transactions when your balance is low. A line of credit is a separate borrowing product—more like a credit card—that you draw from intentionally and repay on a schedule.
With overdraft protection, you do not explore for a loan. The bank straightforward covers transactions and charges you a per-transaction fee. With a line of credit, you borrow a lump sum, pay interest on the balance, and make monthly payments. A line of credit typically costs less over time if you regularly need to borrow, because interest is usually lower than overdraft fees. But overdraft protection is simpler if you only occasionally need a cushion.
Some Citizens Bank accounts bundle overdraft protection with a small line of credit, so you have both options available. Check your account details to see which products you have.
What happens if you do not pay back an overdraft
If your account stays overdrawn for more than a few days, Citizens Bank begins charging additional fees. Most banks charge a daily fee for accounts that remain negative, on top of the initial overdraft fee. Your account may also be reported to ChexSystems, a banking history database that other banks check when you try to open new accounts. A negative ChexSystems report can make it harder to open accounts elsewhere.
If the overdraft persists for weeks or months, Citizens Bank may close your account and send the debt to a collection agency. At that point, the bank reports the debt to credit bureaus, and it appears on your credit report. This damages your credit score and makes it harder to borrow money in the future.
The fastest way to resolve an overdraft is to deposit money into your account as soon as possible. Once your balance is positive, the overdraft is covered and no further fees accrue. If you cannot deposit money when ready, contact Citizens Bank and explain your situation. Some banks will waive one or two overdraft fees if you have a good history, though Citizens Bank's policy on this varies.
Alternatives to overdraft protection
If overdraft protection feels risky or expensive, you have other options. The simplest is to turn overdraft protection off and let transactions decline instead. This prevents you from going negative, though it means your debit card may be declined at checkout. Some people prefer this because it forces them to stay within their actual balance.
Another option is to link a savings account or credit card to your checking account as a backup. If your checking balance is low, Citizens Bank can transfer money from the linked account to cover the transaction. This is called overdraft transfer, and it usually costs less than overdraft protection—often a flat $10 fee per transfer instead of a per-transaction fee.
You can also set up low-balance alerts on your Citizens Bank account. These are free notifications that tell you when your balance drops below a threshold you choose. Alerts give you time to deposit money before you overdraft.
Frequently Asked Questions
Does Citizens Bank automatically give me overdraft protection?
No. Overdraft protection is off by default. You must request it through your online account, mobile app, or by calling customer service. The bank then reviews your account and decides whether to approve you.
What is the overdraft limit at Citizens Bank?
Citizens Bank does not publish a standard overdraft limit. The amount depends on your account type, how long you have been a customer, and your account history. Limits typically range from a few hundred to several thousand dollars. Log into your account or call customer service to find out your specific limit.
Can I overdraft at an ATM?
Yes, if you have overdraft protection turned on. An ATM withdrawal that exceeds your balance will go through, and you will be charged an overdraft fee. Without overdraft protection, the ATM will decline the withdrawal.
Will overdraft protection hurt my credit score?
Overdraft protection itself does not appear on your credit report. However, if your account stays overdrawn for a long time and goes to collections, that will hurt your credit. Regular overdrafts that you pay back quickly do not affect your credit.
Can I turn off overdraft protection after I turn it on?
Yes. You can disable overdraft protection at any time through your online account or by contacting Citizens Bank. Once disabled, transactions that would overdraw your account will be declined instead.