TD Bank Overdraft Fee: How To Avoid It and Get It Waived

TD Bank overdraft fees can add up — here's how to avoid them.

By Cynthia Measom July 6, 2020 Checking Accounts 101

If you’re a customer at TD Bank — or any bank, for that matter — there might have been times when you had more money leaving your checking account than coming in. Maybe you mistimed a direct deposit or didn’t understand the rules about when a deposit becomes available.

Small mistakes like these can cost you a lot of money in the form of overdraft fees. At TD Bank, an overdraft fee will set you back $35. To make matters worse, if you have more than one debit card transaction or check come in on a day when your account balance is low, you might be charged up to five overdraft fees per day. That’s $175 in charges for not staying on top of your checking account balance.

Luckily, there are ways to avoid TD Bank overdraft fees. Keep reading to learn more:

How Much TD Bank Overdraft Fees Cost
TD Bank Overdraft Fee Rules and Limits
How To Get TD Bank Overdraft Protection
- Is Overdraft Protection Worth It?
How To Get TD Bank Overdraft Fees Waived

How Much TD Bank Overdraft Fees Cost

Here’s a breakdown of how much you’ll have to pay for various TD Bank overdraft fees:

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TD Bank Overdraft Fee Overview
Account	Fee	Cost	Fee Limits
All TD Bank Checking	Overdraft	$35	Up to five per day
TD Beyond Checking	Overdraft protection transfer	$3	One charge per day
TD 60 Plus Checking	Overdraft protection transfer	$3	One charge per day
TD Convenience Checking	Overdraft protection transfer	$3, waived for 17- to 23-year-old account holders	One charge per day
TD Private Tiered Checking	Overdraft protection transfer	Waived	N/A

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TD Bank overdraft fee

TD Bank Overdraft Fee Rules and Limits

TD Bank limits its overdraft fees to a maximum of five per day, for a total charge of $175. If you overdraw your balance by less than $5, the amount will be covered by the bank without incurring a $35 overdraft fee. Although that might sound helpful, it’s still important to stay on top of your spending to avoid getting stuck with a hefty overdraft charge.

How To Get TD Bank Overdraft Protection

Mistakes happen, and overdraft protection can soften the blow by reducing the amount you have to pay in case you overdraw your account. TD Bank gives you three overdraft protection options:

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Standard Overdraft Service

TD Bank’s Standard Overdraft Service comes with all of the bank’s accounts. With this service, TD Bank will decline one-time debit card purchases and ATM withdrawals in amounts that exceed your account balance. It also will make decisions on other transactions to authorize. Checks, bill payments and automatic clearing house transfers will likely be paid, which means you’ll be charged the $35 overdraft fee for these items.

TD Debit Card Advance

If you’d like to ensure that TD Bank pays rather than declines your debit card transactions, you’ll need to enroll in TD Debit Card Advance. TD Bank will pay your debit card purchases but still charge you the $35 overdraft fee if you’re overdrawn more than $5.

Savings Overdraft Protection

If you link your TD Bank savings account and enable Savings Overdraft Protection, TD Bank will automatically transfer the amount you need from your savings account to cover transactions in your checking account. You’ll be charged $3 per day for the service. Any transactions for more than what’s available in your savings account will still incur the $35 overdraft fee.

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Is Overdraft Protection Worth It?

If you tend to overdraw your account, it makes sense to expand your overdraft protection by linking a savings account and opting for TD Bank’s Savings Overdraft Protection. You might be charged a $3 fee per day each time the service is triggered, but it’s cheaper than a $35 overdraft fee. You also won’t have to worry about your checking account being in the negative.

Even if you think you’re better off having the bank decline your debit card charges to save money on the TD Bank overdraft fee, you might still be on the hook for a bounced or returned check. The recipient of the check can legally charge you between $20 and $50 if TD Bank doesn’t honor the check you wrote. And if the recipient is in Ohio or Florida, the state allows for returned check penalties of 5% or 10% of the check total, which could cost you hundreds of dollars, depending on the amount you wrote the returned check for.

Learn More: Do Bank Overdrafts Affect Your Credit?

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How To Get TD Bank Overdraft Fees Waived

The best way to avoid overdraft fees is to spend responsibly and monitor your account balances regularly by downloading the TD Bank mobile banking app. But if you do get an overdraft fee and want to get it waived, here’s what you need to do:

Sign up for custom email alerts when your balance goes under an amount you set.
Open a TD Private Tiered Checking account and link your savings account to have your overdraft transfer fees waived.
Open a TD Beyond Checking account. This account includes Overdraft Payback, a feature that automatically reimburses you for the first two overdraft fees you incur per calendar year.

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This content is not provided by TD Bank. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by TD Bank.