Guidance to help you manage overdrafts and avoid fees
Understand your overdraft options and avoid unexpected fees. Select a chapter below to learn more and watch a short video.
What is an overdraft?
An overdraft occurs when you don't have enough money available in your account to cover a transaction. Fees often apply when a transaction causes an account to become overdrawn.
For tips on how to avoid overdrafts, visit How can I avoid overdraft fees?
Consumer Credit Counseling
If you need additional help managing your finances, consider consulting a credit counseling agency. Refer to the Federal Trade Commission's (FTC) "Choosing a Credit Counselor" document, which includes a list of government-approved credit counseling agencies that provide low-cost credit counseling services.
Why did I get that overdraft fee?
You've spent more money than you have available in your account. A transaction that exceeds your Available Balance will cause your account to become overdrawn and a $35 overdraft fee† will apply. Citizens may choose to pay this transaction (at our discretion).
What is Available Balance?
The portion of your Account Balance which is available for you to spend at any given time.
Available Balance changes as you make transactions during the day.
- Deposits increase Available Balance based on our Funds Availability Policy. (Our policy that governs the time between when you make a deposit and when you may use the funds.)
- Withdrawals and purchases made reduce Available Balance.
Available Balance does not reflect:
- Written checks that haven't been cashed and posted (i.e., subtracted from your Account Balance).
- Bill payments that you scheduled in online banking that haven't posted yet.
- Pending pre-authorized debits (Payments deducted automatically by a third party from your account on a recurring basis) such as utilities or subscriptions.
Funds Availability - What does this mean?
Different types of deposits are available at different times. Funds Availability determines when you can use your money.
What's available when?
| Immediately | Same business day | Next business day | How to find the availability status of your deposit. |
|---|---|---|---|
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Available for same day withdrawals |
Available to pay checks and purchases that post to your account that night (and next day withdrawals) |
Available for next business day withdrawals, and to pay checks and purchases that post to your account the next night |
You can find your deposit availability in the My Accounts page in Online Banking, or in the Citizens Personal Deposit Account Agreement |
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Debit Card Overdraft Coverage
Choose how you want the bank to handle debit card purchases and ATM transactions when you don't have enough money in the bank to cover them.
| Item | Debit Card Coverage | Enrollment choice does not apply to |
|---|---|---|
| How It Works |
We may cover withdrawals that overdraw your account so your transactions can be completed even though your account doesn't have the necessary Available Balance. |
These transactions are paid at our discretion and overdraft fees apply. |
| Enroll if |
...you want us to approve, at our discretion, ATM transactions and debit card purchases that overdraw your account. If approved, transactions are completed. Overdraft fees apply. |
|
| Do not enroll if |
...you want the bank to decline ATM transactions and debit card purchases that overdraw your account. To complete the transaction, you will need another form of payment. No overdraft fees apply. |
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| Fees |
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| How to Enroll: |
In Online Banking: Log In |
Overdraft Plan Options - Protect my account from overdrafts
For additional overdraft protection Citizens offers two types of plan options on all of our personal checking accounts. For those who occasionally overdraw their account our Savings Overdraft Transfer and Overdraft Line of Credit Plans may provide a less expensive alternative to paying overdraft fees.
| Item | Savings Overdraft Transfer | Overdraft Line of Credit† |
|---|---|---|
| How it works |
When a transaction overdraws your account, an automatic transfer of available funds from your savings account will be made to cover the transaction. |
Transactions that overdraw your account will be paid at the end of the day via a single transfer using available funds from a line of credit attached to your checking account. |
| Fees |
$0 |
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| Good for you if |
You have sufficient available funds in savings to cover overdrafts |
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| Peace of Mind® |
If your account has a linked overdraft transfer plan, these plan transfers will apply before Peace of Mind. Any applicable plan transfer fees are not eligible for Peace of Mind rebates. |
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You can enroll in either option:
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$5 Overdraft Pass® - Will I be charged for all overdrafts?
If you overdraw your account with a transaction of $5 or less or the overdrawn balance is $5 or less, we will not charge an Overdraft Fee. Checking and money market accounts come with $5 Overdraft Pass®, no need to enroll.
How it works:
- If any transaction is $5 or less, or the overdrawn balance is $5 or less, we will automatically pay the transaction; we will not charge you the $35 overdraft fee.†
- If you are enrolled in Debit Card Overdraft Coverage, we also cover ATM and Debit Card transactions of $5 or less.
- If you have an Overdraft Line of Credit, you will not be charged a transfer fee on any day in which all transfers are for $5 or less.†
| Transaction | Amount | Balance | Covered by $5 Overdraft Pass® |
Example |
|---|---|---|---|---|
|
Coffee Purchase, Debit Card |
$4 |
-$1 |
Yes |
Susan began the day with a $3 balance in her One Deposit Checking account. She made two small purchases and had two checks clear, which resulted in a negative account balance. She will not be charged an overdraft fee for the purchases she made or one of the checks (checks 101), since they were $5 or less. |
|
Lunch Purchase, Debit Card |
$5 |
-$6 |
Yes |
|
|
Check 103 Cashed |
$85 |
-$91 |
No |
|
|
Check 101 Cashed |
$4 |
-$95 |
Yes |
How can I avoid overdraft fees?
The best way to avoid overdrafts and fees is to monitor your account balances and activity. Here are some tools that make it easy:
Set balance alerts
Set up Online Banking email and text alerts† to be notified when your balance is low, and to monitor specific transactions.
Track your balance
Log in to Online and Mobile Banking† daily to securely check your available balance and account activity. Remember to consider any outstanding checks or scheduled payments that have not been made.
Pay bills automatically.
You can set up bill payments when you know you have money in your account (like on payday) and set reminders to ensure you won't pay your bills late and incur costly fees.
Sign up for direct deposit
Have your paycheck automatically deposited in your account to get faster access to funds on payday and ensure your money is available when you need it.
Now with Citizens Paid Early®. A new feature that lets you get paid sooner — up to 2 days early.†
Understand your checking account options
Citizens has checking accounts designed specifically for those wanting to prevent overdraft fees. Compare Checking Account Options
FAQs about Overdraft Fees and Coverage
Have more questions? Get more answers in our full FAQs section.
© Citizens Financial Group, Inc. All rights reserved. Citizens is a brand name of Citizens Bank, N.A. Member FDIC
† For additional information, please click the † symbols throughout this page to view our checking disclosures.