 TITLE: What Are Overdraft Fees and How Much Do They Cost? CONTENT: Overdraft fees may occur when a payment is authorized and there's not enough funds in your bank account to fully cover the transaction.\nInstead of declining the payment, your bank may hand over the money for the transaction and charge you a fee. If you have multiple overdrafts in one day, it's possible to get hit with multiple fees; however, there may be a limit to how many fees you can be charged per business day.\nTo rectify an overdraft situation, you'll have to add money to your bank account to cover the overdraft amount plus the fees your bank charged. Otherwise, the balance you owe will be subtracted from your next deposit. If you don't bring your balance above zero, the bank may close your account and transfer an unpaid balance to a collection agency.\nAnother form of overdraft protection that banks may offer is an automatic transfer from a linked account to cover a purchase if you don't have enough money in checking. For example, if you try to make a $200 purchase and there's only $150 in your checking account, the bank might pull money from savings or a credit card to ensure your account doesn't go into the red. This transfer service may also come with a fee, but it's often lower than the overdraft fee. END