Banking » Guides » How Does TD Bank Overdraft Fee Work? How to Waive It?
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How Does TD Bank Overdraft Fee Work? How to Waive It?

Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: June 3, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: June 3, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

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Table Of Content

How Does TD Bank's Overdraft Work?

The overdraft fee for TD Bank Business and Consumer checking accounts is $35 per item, regardless of whether the overdraft is made via cheque, ATM withdrawal, debit card transaction, or other technological means. TD Bank will not charge more than three overdraft fees each business day

An overdraft happens when insufficient money is in an account to fund a transaction or withdrawal, but the bank approves the transaction. With an overdraft account, TD Bank will cover payments made by a customer that would otherwise be denied or, in the case of physical checks, bounce and be returned unpaid.

For example, You make a $250 payment to the grocery store, but your Wells Fargo account only has $220. You are $30 short, so your bank will cover the difference and charge you an overdraft fee. You will now owe the bank $30 plus the overdraft cost.

However, TD Bank makes it clear that they will not cover the transaction if you have had too many overdrafts. You must get your account to a positive balance as soon as possible. 

TD Overdraft Service
TD Overdraft Service

How Much TD Bank Overdraft Fee Compared to Other Banks?

Many banks and especially online banks, don't charge overdraft fees at all. Here are some of the banks that don't charge an overdraft fee:

  • Capital One 360
  • Discover
  • Chime
  • Axos Bank
  • Ally
  • Citibank

Most banks still charge an overdraft fee, but most of them offer a grace period and overdraft protection.

Here's a list of overdraft fees and maximum charges per day in 6 major banks in the nation:

Bank/institution
Overdraft Fee
Max Per Day
bank of america bank logo
Bank of America
$10
4 per day
Learn More
TD_Bank logo
TD Bank
$35
3 per business day
Learn More
pnc bank logo
PNC Bank
$36
4 per 24 hours
Learn More
Wells_Fargo-Logo
Wells Fargo
$34
3 per business day
Learn More
us bank logo
US Bank
$36
4 times per day
Learn More
chase bank logo
Chase Total Checking®
$35
3 per business day
Learn More

How Long Before TD Bank Charges An Overdraft Fee?

To pay your overdraft and avoid fees, you have until 11 PM Eastern Time on the business day after it to make deposits. TD Bank charges an average overdraft fee of $35 per item if your available balance at 11 PM Eastern Time does not cover all the overdraft items from the previous business day.

For example: If you use an overdraft service on Thursday, you will have until Friday at 11 PM Eastern Time to make up the overdrawn amount.

Does TD Bank Offer 24 Hours Overdraft Fee Policy?

TD Bank offers a grace period. You have an additional working day to make deposits and evade overdraft fees with the Extra Day Grace Period. TD Bank will not charge you any overdraft fees if your available balance covers the overdraft items from the previous business day as of 11PM Eastern Time.

For example, your available balance on Thursday is $80. That night, your $130 check is paid, leaving your account $50 overdrawn and susceptible to a $35 overdraft fee. When you deposit $50 on Friday and have no other pending transactions as of 11 PM Eastern Time, your available balance is adequate to cover the overdraft item; TD Bank will waive the overdraft fee from last night's cheque.

Call TD Bank To Refund The Overdraft Fees

Talk to your bank as soon as you know you've been charged an overdraft fee. If you're having trouble with your debit card, call the number on the back or look up the company's customer service phone number online immediately. 

Avoiding overdraft costs should be fine without a phone call to a specific department. Even if they need to consult with a manager, each customer support agent should be able to solve your problem.

Some tips that may help:

  • Remember that you are asking the bank to do you a favor. Asking nicely can get you a long way. Even if the customer service rep doesn't let you off the hook for the fee, try not to get angry.
  • If the representative refuses to waive the fee, you should discuss the matter with the manager. Just how much of a valuable customer you are to the bank and how long you've been doing business with them should be communicated to them.
  • Remember that banks are more likely to waive a fee the first time you ask. Getting the price taken off may be more challenging if you often go overdrawn. TD bank has clarified that they will not waive the fee if you have repeatedly overdrawn your account.
  • Customers who pay overdraft fees tend to pay also the TD monthly maintenance fee since they don't meet the minimum balance to waive it. If you one of them – use it in your negotiation, it can help you reduce the fee.
TD Bank overdraft fee documents and smartphone to call
(Photo by sdx15/Shutterstock)

How Does TD Bank Overdraft Protection work?

If insufficient funds are in your primary TD Bank checking account, you may authorize or pay for transactions using funds from TD Bank savings accounts. 

TD Bank will automatically deduct transaction fees from the linked savings account or transfer funds from the account if insufficient funds exist. Avoid the hassle of having transactions refused or going into an overdraft by signing up for the available savings Overdraft Protection.

If you don't have overdraft protection, the merchant may only penalize or charge a fee for paid transactions. savings Overdraft protection ensures that payments will be made up to the overdraft limit even if the account balance drops to zero. 

TD Overdraft Service
TD bank overdraft options (Screenshot from TD Bank)

What Else Can I Do To Avoid Overdraft?

Another important thing to do is to set up automatic alerts.

TD bank alerts can help you keep track of your available balance. These alerts will inform you if you have enough money in your account.

Remember that your available credit doesn't include transactions we have yet to learn about, like the check you just wrote or the car payment you just authorized.

What is TD Bank Debit Card Advance Coverage?

With this optional service, if you need more money in your account, you can choose how TD bank handles your ATM and everyday (one-time) debit card transactions.

  • If you enroll for the TD Debit Card Advance , TD bank will authorize the transaction but you’ll have to pay an overdraft fee – you will be charged a $35 overdraft fee per item if your transaction is authorized for overdraft.
  • Don't sign up for debit card coverage if you want to avoid TD bank covering transactions or debit card purchases that cause your account to go overdrawn. You will need another way to pay, but you won't be charged an overdraft fee.

FAQs

Yes, TD Bank does provide a grace period. With the Extra Day Grace Period, you have an extra working day to make deposits and avoid overdraft fees, until 11 PM ET.

TD Bank will not charge you any overdraft fees if your available balance covers the previous business day's overdraft until 11 PM ET.

TD Bank will not charge more than three overdraft fees per business day for personal accounts.

If you call the bank, TD bank may waive the fee for the first or second time.

If you cover the overdrawn amount in the grace period, your fee will be waived. But if an overdraft fee is applied, TD Bank will not waive the fee if you repeatedly overdraw your account. 

TD Bank does not immediately levy an overdraft fee. With the Extra Day Grace Period, you have time until the next business day until 11 PM ET after an overdraft to cover the overdraft and avoid fees.

TD Bank overdraft fee is charged each time you overdraw your account. It is not set every day or every month. For a one-time overdraft, you will be charged $35, and three overdrafts in one day will cost you $105 in total.

TD Bank will probably cancel the account if you repeatedly overdraw an account or allow it to remain in the negative for an extended period. 

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Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
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