Chase Bank Expands Overdraft Protection Options

Chase Bank is adding more options for customers to avoid overdraft fees in 2022, per a Wednesday (Dec. 8) press release.

The bank is giving customers an extra day to bring their overdraft balance to $50 or less, giving them until the end of the next business day to add more funds.

Chase is also giving them an option for early direct deposit options in 2022, allowing customers to get paid up to two business days earlier, so they’ll have more cash in their account.

This year, Chase has already expanded the overdraft cushion to $50, a drastic increase from its previous amount of $5 — meaning customers don’t have to pay the overdraft fees if their account is overdrawn by $50 or less.

Additionally, Chase eliminated returned item fees this year, so Chase customers no longer have to pay a fee if Chase cannot pay a check or electronic payment due to the customer not having sufficient funds.

Those last two options, the bank says, have already helped around two million customers avoid overdraft fees this year.

The press release notes that customers need overdraft protection because they need to avoid the late fees when paying for essentials like utilities, rent and groceries.

Chase CEO of Consumer Banking Jennifer Roberts said the changes have provided better services for customers “who have avoided on average $60 in fees waiting for their paycheck to hit or are just a little short in funds that day.”

“We know that customers incur late fees on important bills,” Roberts said in the release. “With overdraft, we help our customers avoid late fees and potential negative impacts to their credit score, and with debit card coverage customers can continue making purchases with their debit card.”

This news comes as the Consumer Finance Protection Bureau is cracking down on banks charging fees for overdrafts on checking accounts.

The CFPB said there were too many instances of banks, often large institutions, making substantial money from overdraft fee payments from customers – often customers who were poorer and had more trouble paying the money.

Read more: CFPB to Heavily Regulate Overdraft Fees From Banks