Regions Bank Overdraft Fees, Limits & Protection - Overdraft Apps (2024)

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Though Regions Bank recently announced changes to its overdraft protection program to reduce and eliminate some fees, it continues to charge above-average fees that quickly surpass $100 per day if you aren’t carefully tracking your spending.

In this guide, we’ll break down Regions’ overdraft limits, how and when the bank charges you for overdrafts, what those fees can cost you, and some simple tips and tricks to avoid them altogether!

Chime is a financial technology company, not a bank. Banking services and checking account provided by The Bancorp Bank, N.A. or Stride Bank N.A.; Members FDIC.

What We’ll Cover:

• What Is Regions Bank’s Overdraft Policy?
• How Much Is Regions Bank’s Overdraft Fee?
• How Much Will Regions Bank Let Me Overdraft at an ATM?
• Does Regions Bank Charge NSF Fees?
• Can You Get a Regions Bank Overdraft Fee Waived?
• How To Avoid Overdraft Fees With Regions Bank

What Is Regions Bank’s Overdraft Policy?

Like most banks, Birmingham-based Regions Bank requires customers to enroll in its overdraft protection program (sometimes called Regions ODP) in order to process overdraft transactions. There is no cost for Regions’ overdraft protection, which will link your savings account, credit card, or line of credit to your checking account.

Once enrolled in overdraft protection, you can usually overdraw your account via ATM withdrawals, bill payments, or debit card purchases at any time up to the amount available in both of your linked accounts, and beyond that amount (meaning you will have a negative balance) at the bank’s discretion. Regions will first try to transfer funds from your linked account to prevent your checking account balance from turning negative. It will do so in the greater of $100 increments or available funds in your linked account.

There is no fee for overdraft protection transfers.

How Much Is Regions Bank’s Overdraft Fee?

Regions Bank does not charge a fee for overdraft protection transfers, so if your linked account can cover your pending checking account transactions, you’re all set.

If your linked account does not have a large enough balance to cover an overdraft item, Regions will still process the transaction at its discretion, which will overdraw your account and result in a negative balance. Depending on your overdraft election, Regions will then charge your checking account a Paid Overdraft Item Fee or a Returned Item Fee of$36per item. The $36 fee is above average for bank overdraft fees. Regions will not charge you an overdraft fee if your account balance is negative by less than $5.

You may have multiple overdraft fees per day by making just a few small purchases while your account is overdrawn. Regions Bank will currently charge you for up to three overdraft fees per day (3 overdrafts X $36 fee = $108!). The the bank recently reduced its daily cap from five overdraft fees which could cost you a painful $180 in daily fees!

Customers with a Regions Now Checking account are not subject to overdraft fees, though that account carries a $5 monthly fee and is not eligible for Region’s Standard Overdraft Coverage.

WAIT! High overdraft fees aren't the only way Regions Bank is costing you money.

With inflation overheating, you've probably heard that interest rates are climbing sharply. That means that for the first time in years, it's a great time to shop around for a high interest savings account.

Regions Bank savings accounts currently pay just 0.01% APY¹ as of 11/22/2022. That means that if you have $2,500 in a savings account, you'd earn just $0.25 after one year! Move those hard-earned savings to an FDIC-insured bank paying 3.50% APY and you'd earn $87.49 after one year, and some banks now pay even higher rates!

Don't let your hard-earned savings sit there doing next to nothing. Check out the rates that you can earn at other banks:

How Much Are Region’s Bank Overdraft Limits at an ATM?

If you’ve opted-in for overdraft protection, then Regions Bank will let you overdraft at an ATM, so you can access cash. Your Regions Bank overdraft limit will be set by the bank on a daily basis, based upon your balance, account history and other factors.

If your linked account has a large enough balance to cover the transaction, then you’ll avoid any fees. Otherwise, you’ll incur a $36 overdraft fee, and any additional debit card purchases or bill payments you make that day will also be subject to additional fees, so be careful!

If you’re a new Regions Bank customer, you’ll generally need to wait 14 days to start accessing the overdraft protection features of your account, regardless of what the balance of your linked account is. There is one exception that will let you overdraft your bank account right away. If you have an existing Regions Bank credit card account or open a new credit card with the bank and activate your card, your access to overdrafts will be activated even if you haven’t yet reached the 14-day waiting period.

If you’re not participating in Regions’ overdraft protection program, you won’t be able to use your debit card to make purchases or access cash if it would push your account into negative territory.

To opt-in to overdraft coverage, you can do one of the following:

1. On the website of Regions Bank, click the customer service tab and click manage overdraft protection from the account services section.
2. Enroll the account and allow one business day before seeing coverage in effect.
3. Log in to your Regions account and select overdraft coverage options from the customer service menu online.

You can also set up overdraft protection by calling Regions’ customer service number or visiting your local Regions Bank branch.

Does Regions Bank Charge NSF Fees?

Great news, Regions Bank eliminated its NSF fees in 2022; they were previously $36 per returned item. While you won’t face a fee for a bounced check from Regions, you may still be on the hook for extra costs charged by the intended recipient of the payment.

Can You Get a Regions Bank Overdraft Fee Waived?

Despite what many people think, it is possible to get an overdraft fee refunded or waived. As mentioned before, customers can receive a one-time refund on a returned item fee and an overdraft fee. You can call 1-800-734-4667 for a full refund.

Although U.S. banks make an average of $15 billion per year on overdraft fees alone, they do not particularly like it when you overdraw your account too often. As a consequence, the bank can report you to a credit bureau and terminate your bank account.

Here are a few tips to have your overdraft fee waived:

• Speak to your bank and let them know the background information involving the overdraft.
• Mention that you are unsure how this happened and ask to have it removed.
• Remember banks are willing to forgive overdraft fees, especially during a pandemic.
• Mention you are a loyal customer and that it is not common practice for you to do this.

How To Avoid Overdraft Fees With Regions Bank

Customers hate overdraft fees. About 60% of customers have taken action after receiving a fine or fee, and some have closed their accounts for good.

Avoid overdraft fees by balancing your checkbook regularly and creating a budget for your household. Create an organized shopping list to avoid impulse buying.

If you have a shared account with another person, you can give them control of the checkbook and debit card as long as you know that they are trustworthy.

Never make a payment or write a check that is more than your current balance. Link your savings and checking account to avoid having an overdrawn account. You may receive a credit line of up to $1,000, and you can link your account and cover transactions made with insufficient funds.

Here are some of the best cash advance apps you can use to help:

• Earnin – access your paycheck anytime with no fees! You can instantly get a cash advance of up to $100, with the funds going straight to your existing bank account. Build your account history and your limits can increase to up to $100 per day and $500 per pay period.
• Dave – best for small advances as it lets you borrow money to cover expenses until you receive your next paycheck. It helps you avoid overdrawing your account.
• Brigit – is great as the free plan gives you lots of help with budgeting and other financial advice.
• MoneyLion – offers financial tracking, credit builder loan, mobile bank, and investment accounts. You can also take up to $250 in cash advances.

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Regions Bank offers many ways to protect you from overdrawing your account and makes it easy to withdraw money even if you forget your debit card at home. Always remember to budget your money well and use the apps above to manage your finances and prevent your account from going into an overdraft.

Watch: Regions Bank fined $7.5 million for illegal overdraft fees in 2015

1. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month and Visa debit card activation. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member's Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime's discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won't cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See terms and conditions.
2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.