Step 1: Understanding the Basics of a Truist Overdraft
Before we delve into the nitty-gritty, let's establish a clear understanding of what an overdraft is in the context of your Truist account.
What is an Overdraft?
An overdraft occurs when you make a transaction that exceeds the available funds in your checking account. Essentially, you spend more money than you have. When this happens, Truist has a few ways it might handle the transaction, and some of those ways can lead to fees.
Available Balance vs. Actual Balance
It's important to distinguish between your available balance and your actual balance.
- Actual Balance: This is the total amount of money in your account.
- Available Balance: This is the actual balance minus any holds, pending transactions, or funds that are not yet available for withdrawal (e.g., a recently deposited check that hasn't cleared). Truist typically uses your available balance to determine if a transaction will overdraw your account.
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| How Do Truist Overdraft Fees Work |
Step 2: Truist's Standard Overdraft Practices and Fees
Truist has standard practices for handling overdrafts that come with most accounts. It's crucial to be aware of these default settings.
Overdraft Fee Amount
If Truist pays an overdraft on your behalf, you will generally be charged an Overdraft Fee of $36 per item.
Maximum Number of Overdraft Fees Per Day
Truist limits the total number of Overdraft Fees you can incur to three per day. This means that no matter how many transactions overdraw your account in a single day, you typically won't be charged more than three $36 fees.
Tip: Use the structure of the text to guide you.
Overdraft Fee Threshold
There's a bit of a silver lining for smaller transactions. Truist will waive overdraft item fees for transactions that are less than $5.00. This means if you accidentally overdraw your account by a very small amount, you might not be charged a fee.
Which Transactions Can Cause Overdrafts?
Overdrafts can be triggered by various types of transactions, including:
- Checks you write
- Automatic bill payments (ACH transactions)
- Recurring debit card transactions
- In-person withdrawals
- ATM withdrawals
- One-time debit card purchases
Important Note: Truist pays overdrafts at its discretion. This means they do not guarantee that they will always authorize and pay any type of transaction that would overdraw your account. If they choose not to pay, the transaction will be declined or returned, and you might incur a "Returned Item Fee" (which is also typically $36).
Step 3: Understanding Overdraft Coverage (Opt-In/Opt-Out)
This is a critical aspect of Truist's overdraft system, particularly for debit card and ATM transactions.
What is Overdraft Coverage?
Overdraft Coverage is an optional service that you can add to your account. If you opt in to this service, Truist may authorize and pay ATM and everyday debit card purchases even if you don't have sufficient funds in your account. If they do, you'll be charged the Overdraft Fee.
Tip: The details are worth a second look.
Automatic Opt-Out at Account Opening
By default, your Truist account is automatically opted out of Overdraft Coverage for ATM and everyday debit card transactions at account opening.
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If you remain opted out: Truist will automatically decline all future ATM and everyday debit card transactions that would overdraw your account. Since these transactions
are declined, you will not be charged an Overdraft Fee for them. This can be a great way to prevent accidental overdrafts on these types of purchases. -
If you opt in: By choosing to opt in, you're allowing Truist the discretion to pay these transactions. If they do, you'll incur the $36 Overdraft Fee.
How to Change Your Overdraft Coverage Decision
You have the power to change your Overdraft Coverage decision at any time. Here's how:
- Truist Mobile App: Log in, select the applicable account, tap on the ellipses (...), select "Overdraft options," scroll down to "Overdraft Coverage," and switch it "on" or "off."
- Truist Online Banking: Log in to Truist.com, select the account, click "More," then "Overdraft options," and go to "Manage Overdraft Coverage."
- By Phone: Call Truist at 844-4TRUIST (844-487-8478). For touch-tone users, choose options 1, 6, and follow the prompts. If using speech, simply say "Overdraft Coverage."
Your decision will be effective the next business day and will remain in effect until you change it again.
Step 4: Exploring Overdraft Protection Plans
Overdraft Protection is another optional service that can be a lifesaver for avoiding fees. Unlike Overdraft Coverage, which charges a fee if Truist covers an overdraft, Overdraft Protection aims to prevent the overdraft from happening in the first place.
How Overdraft Protection Works
Overdraft Protection allows you to link your Truist checking or money market account (the "protected" account) to another Truist deposit account, credit card, or line of credit (the "protector" account).
QuickTip: Slow down if the pace feels too fast.
When there are insufficient funds in your checking account to cover a transaction, available funds are automatically transferred from your linked "protector" account to cover the shortfall.
No Fee for Overdraft Protection Transfer
The best part? There is no fee for the Overdraft Protection transfer itself when linking to another Truist deposit account. The exact amount of the overdraft is transferred.
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Considerations for Linked Accounts:
- Savings or Money Market Accounts: If your linked protector account is a savings or money market account, remember that transfers will count towards the maximum number of six (6) withdrawals and transfers allowed per monthly statement cycle before a Withdrawal Limit Fee is incurred
on the savings/money market account. - Credit Card or Line of Credit: If you link a credit card or line of credit, any funds advanced for Overdraft Protection are subject to the fees and finance charges of your credit card or line of credit agreement. It's crucial to review these agreements to understand any potential interest or cash advance fees.
- Truist Ready Now Credit Line: This is a specific line of credit offered by Truist that can serve as overdraft protection. It has no collateral required and aims to provide quick access to funds, potentially saving you from higher overdraft fees. There are generally no overdraft fees on your linked Truist checking account when using this as protection.
How to Enroll in Overdraft Protection
You can typically enroll in Overdraft Protection by calling 844-4TRUIST (844-487-8478) or by visiting a local Truist branch.
Step 5: Special Truist Accounts with No Overdraft Fees
Truist has introduced specific account types designed to help clients avoid overdraft fees altogether.
Truist One Checking
This account is designed to simplify banking and provides significant benefits regarding overdrafts.
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- No Overdraft Fees: Truist One Checking does not charge overdraft fees or overdraft-related fees.
- Balance Buffer: Eligible Truist One Checking clients may also qualify for a "Balance Buffer," which allows them to overdraw their account up to $100 without penalty. This is an automatic feature if you qualify (typically requires the account to be open for 35 days with a recent direct deposit of at least $100). If you exceed the $100 buffer, additional transactions will usually be declined or returned.
Truist Confidence Account
The Truist Confidence Account is a checkless account that aims to provide mainstream banking services with no overdraft fees. Transactions generally only go through if you have the funds available.
If you frequently struggle with overdrafts, considering one of these accounts could be a game-changer for your financial well-being.
Step 6: Proactive Strategies to Avoid Overdrafts
Understanding the fees and protection options is vital, but the best defense against overdraft fees is to prevent them in the first place.
Sub-heading 6.1: Diligent Account Monitoring
- Regularly Check Your Balance: Make it a habit to check your Truist account balance frequently, especially before making any large purchases or when automatic payments are pending. Use the Truist mobile app, online banking, or ATMs.
- Reconcile Your Transactions: Compare your spending with your account statement to ensure accuracy and catch any discrepancies early.
Sub-heading 6.2: Set Up Low Balance Alerts
- Utilize Truist Alerts: Truist offers low balance alerts that can notify you by text or email when your account balance falls below a threshold you set. This is an incredibly effective proactive measure.
- How to set them up: You can typically set these up through your Truist online banking portal or mobile app.
Sub-heading 6.3: Budgeting and Financial Planning
- Create a Budget: A clear budget helps you understand where your money is going and how much you have available for spending.
- Track Your Expenses: Use budgeting apps, spreadsheets, or even a simple notebook to keep a record of all your expenditures.
- Maintain a Buffer: Aim to keep a small cushion of extra funds in your checking account as a buffer against unexpected expenses.
Sub-heading 6.4: Manage Automatic Payments
- Schedule Carefully: If you have recurring automatic payments (like subscriptions or bills), ensure you have sufficient funds in your account on the scheduled payment date.
- Consider Adjusting Dates: If possible, align your automatic payment dates with your paydays to minimize the risk of insufficient funds.
Sub-heading 6.5: Direct Deposit Benefits
- Enroll in Direct Deposit: Having your paycheck directly deposited into your account ensures funds are available quickly and consistently, reducing the chances of overdrafts.
Step 7: What to Do if You Overdraft Your Account
Even with the best intentions, an overdraft can occasionally happen. Here's what to do:
- Act Quickly: If you realize you've overdrawn your account, deposit funds or transfer money into it as soon as possible. Sometimes, if you cover the negative balance by the bank's daily cutoff time on the same business day, the overdraft fee might be waived (though this is at Truist's discretion and not a guarantee for all account types or situations).
- Contact Truist: If you're unsure about the fee or your options, call Truist customer service at 844-4TRUIST (844-487-8478). Explain your situation and see if there are any remedies available.
- Review Your Overdraft Options: Use this as a learning opportunity to review your Overdraft Coverage and Overdraft Protection settings to see if adjustments are needed to prevent future occurrences.
Frequently Asked Questions (FAQs) - How to...
Here are 10 common "How to" questions related to Truist overdraft fees and their quick answers:
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How to check my Truist account balance?
- You can check your balance via the Truist mobile app, online banking at Truist.com, or by calling their automated phone banking service.
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How to avoid Truist overdraft fees entirely?
- Consider opening a Truist One Checking or Truist Confidence Account, as these accounts generally do not charge overdraft fees.
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How to opt out of Truist Overdraft Coverage for debit card purchases?
- You can opt out through the Truist mobile app, online banking, or by calling Truist customer service. Your account is opted out by default at opening.
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How to set up Overdraft Protection with Truist?
- You can set up Overdraft Protection by linking a Truist savings, money market, credit card, or line of credit account to your checking account. Contact Truist customer service or visit a branch to do so.
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How to receive low balance alerts from Truist?
- You can set up low balance alerts through your Truist online banking or mobile app settings, choosing to receive notifications by text or email.
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How to find out if I have Truist Overdraft Coverage or Overdraft Protection?
- Log in to your Truist online banking or mobile app, navigate to your account details, and look for "Overdraft options" or "Overdraft services." You can also call customer service.
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How to cover a Truist overdraft after it happens?
- Deposit funds or transfer money into your overdrawn account as quickly as possible. This may help in some situations, but fees may still apply.
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How to understand why I was charged a Truist overdraft fee?
- Check your transaction history in online banking or the mobile app to identify the transaction that caused the overdraft. You can also review your account's specific fee schedule or contact Truist for clarification.
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How to link another Truist account for Overdraft Protection?
- You can link eligible Truist deposit accounts (like savings or money market) or credit products (like a credit card or line of credit) by contacting Truist customer service or visiting a branch.
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How to get a Truist Ready Now Credit Line for overdraft protection?
- You can apply for a Truist Ready Now Credit Line in person at a branch or by phone if you have a Truist checking account.
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