Overdrafts can be a source of significant stress and unexpected fees, but understanding how your bank handles them is the first step toward better financial management. If you're a Truist customer, you're in luck, as Truist has made significant strides in recent years to reduce or eliminate many common overdraft fees. This comprehensive guide will walk you through Truist's overdraft policies, how much you might be able to overdraft (and should overdraft!), and strategies to avoid these situations altogether.
Are You Ready to Understand Your Truist Overdraft Options? Let's Dive In!
Understanding your bank's policies is crucial for managing your money effectively. Truist offers several ways to handle situations where you might spend more than you have in your account. The key is knowing what options are available to you and how they work.
Step 1: Understand Truist's Overdraft Philosophy – A Shift Towards Client Well-Being
Truist has been proactive in changing its overdraft policies to be more client-friendly. This is a significant change from traditional banking practices where overdraft fees could quickly accumulate. As of recent updates, Truist has largely eliminated many common overdraft fees for its consumer accounts, particularly with its Truist One Checking account.
What Does "No Overdraft Fees" Really Mean?
For the Truist One Checking account, Truist does not charge overdraft fees or overdraft-related fees. This includes fees for returned items and continuous negative balances. This is a game-changer for many, offering a safety net without the penalty of traditional overdraft charges.
Step 2: Discover the Truist Balance Buffer – Your Automatic Cushion
One of the most noteworthy features for Truist One Checking account holders is the Balance Buffer. This isn't an overdraft fee, but rather a built-in cushion that allows you to temporarily go into a negative balance without incurring any charges.
How Much is the Balance Buffer?
The Balance Buffer allows eligible Truist One Checking clients to overdraw their account by up to $100 without any fee. This is designed to cover those small, accidental overspends.
How to Qualify for the Balance Buffer:
- Initial Qualification:
- Your account must be open for a minimum of 35 calendar days.
- The account must be funded with a positive balance.
- You must have a single direct deposit of at least $100 made within the last 35 calendar days.
- To Remain Qualified:
- You need to maintain a single direct deposit of at least $100 made within the last 35 calendar days. If 35 days pass without a qualifying direct deposit, you may lose access to the Balance Buffer.
It's important to note that once your account is overdrawn by $100 with the Balance Buffer, any additional transactions will typically be declined or returned.
Step 3: Explore Overdraft Coverage – The Optional Service
While the Truist One Checking account offers the Balance Buffer and no overdraft fees, Truist also offers an optional service called Overdraft Coverage. This service allows Truist, at its discretion, to authorize and pay transactions on ATM and everyday debit card purchases even when you don't have sufficient funds.
Opting In vs. Opting Out of Overdraft Coverage:
- Opted Out (Default): Your account is automatically opted out of Overdraft Coverage when you open it. If you remain opted out, Truist will automatically decline all future ATM and everyday debit card transactions that would overdraw your account. This means you won't be charged an Overdraft Fee for these specific types of transactions, as they simply won't go through.
- Opted In: By opting in, Truist may pay ATM and everyday debit card transactions at their discretion even if your account has insufficient funds.
Your choice to opt in or opt out of Overdraft Coverage does not apply to checks, ACH transactions, and recurring debit card transactions. Truist may still pay these at their discretion, and traditional overdraft fees could apply to these transaction types if you do not have a Truist One Checking account or other protective measures in place.
Step 4: Consider Overdraft Protection – Linking Accounts for Seamless Coverage
Overdraft Protection is another valuable optional service that can help you avoid declined transactions and potential fees. This service 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).
How Overdraft Protection Works:
When your "protected" account doesn't have enough funds to cover a transaction, available funds are automatically transferred from your linked "protector" account to cover the shortfall.
Key Benefits:
- No Overdraft Protection Transfer Fees: Truist generally does not charge a fee for the transfer itself when using Overdraft Protection.
- Exact Amount Transferred: The exact amount of the overdraft is transferred, so you only move what's necessary.
- Order of Operations: If you have both Overdraft Protection and the Balance Buffer (with Truist One Checking), Truist will use the Balance Buffer first. If that's exhausted, then Overdraft Protection will kick in.
If your linked protector account is a savings or money market account, keep in mind that these 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.
Step 5: Understand Potential Fees on Other Truist Accounts (If Not Truist One Checking)
While Truist has largely eliminated overdraft fees for its flagship Truist One Checking account, it's crucial to understand that other Truist account types might still have traditional overdraft fees.
Common Overdraft Fees (for non-Truist One Checking accounts):
- Overdraft Fee: Historically, Truist charged a fee (e.g., $36) each time they paid an overdraft on your behalf.
- Maximum Daily Fees: There's typically a limit to the number of overdraft fees you can be charged per day (e.g., 3 per day).
- Overdraft Fee Threshold: Sometimes, small transactions (e.g., under $5) might be exempt from overdraft fees.
It's highly recommended to consult the specific fee schedule for your Truist account type if you do not have a Truist One Checking account to understand the exact charges you might face.
Step 6: Proactive Strategies to Avoid Overdrafts Entirely
While Truist has made overdrafts less punitive, the best approach is to avoid them altogether. Here are some proactive steps:
Sub-heading 6.1: Monitor Your Balance Regularly
- Utilize Mobile Banking: The Truist Mobile app and online banking provide real-time access to your account balance. Check it frequently, especially before making large purchases.
- Set Up Low Balance Alerts: Truist allows you to set up alerts that notify you via text or email when your account balance drops below a certain threshold. This is an incredibly effective way to prevent accidental overspending.
Sub-heading 6.2: Create and Stick to a Budget
- Know Your Income and Expenses: A clear understanding of your cash flow is fundamental. Track where your money is coming from and where it's going.
- Allocate Funds: Assign specific amounts for different spending categories (e.g., groceries, rent, entertainment).
Sub-heading 6.3: Link Accounts for Overdraft Protection
- As discussed in Step 4, setting up Overdraft Protection with a linked savings account, money market account, credit card, or line of credit is a smart move. It acts as an automatic backup.
Sub-heading 6.4: Align Bill Due Dates with Paydays
- Optimize Your Cash Flow: If possible, arrange for your recurring bills to be due shortly after your paychecks are deposited. This ensures funds are available when needed.
Sub-heading 6.5: Maintain a Small Buffer in Your Account
- Keep a Cushion: Even if you're diligent with budgeting, it's wise to keep a small buffer (e.g., $100-$200) in your checking account beyond your anticipated expenses. This acts as an emergency fund for unexpected small transactions.
Step 7: What Happens if You Overdraft and Don't Have Protection/Buffer?
If you don't have Truist One Checking with its Balance Buffer, and you haven't opted into Overdraft Coverage for ATM/debit card transactions, or your Overdraft Protection runs out, transactions that exceed your account balance will typically be declined or returned. While this can be inconvenient, it also means you won't incur an overdraft fee for that specific transaction.
For checks and ACH transactions where you don't have sufficient funds and no protection is in place, Truist may, at its discretion, either pay the item (incurring a fee on non-Truist One Checking accounts) or return it unpaid (potentially incurring a returned item fee on non-Truist One Checking accounts).
10 Related FAQ Questions
How to avoid overdraft fees with Truist?
The best ways to avoid overdraft fees with Truist are to open a Truist One Checking account (which has no overdraft fees and includes a Balance Buffer), set up Overdraft Protection by linking a savings account or other eligible account, and regularly monitor your balance and set up low balance alerts.
How to check my Truist account balance?
You can check your Truist account balance through the Truist Mobile app, online banking at Truist.com, by calling Truist customer service, or by visiting a Truist ATM or branch.
How to set up low balance alerts for my Truist account?
You can typically set up low balance alerts through your Truist online banking portal or the Truist Mobile app. Look for "Alerts" or "Notifications" settings within your account management section.
How to enroll in Truist Overdraft Protection?
You can enroll in Overdraft Protection by logging into Truist Mobile or online banking, calling 844-4TRUIST, or visiting a local Truist branch.
How to opt in or out of Truist Overdraft Coverage for debit card transactions?
You can change your Overdraft Coverage decision at any time by logging in to Truist Mobile (select the account, tap ellipses, choose "Overdraft options," then "Overdraft Coverage"), logging into online banking at Truist.com (select the account, click "More," then "Overdraft options," and "Manage Overdraft Coverage"), or by calling 844-4TRUIST.
How much is the overdraft fee at Truist for accounts other than Truist One Checking?
For accounts other than Truist One Checking, the standard overdraft fee can be $36 per item, with a typical limit of three fees per day. However, Truist may waive fees for transactions under $5.
How does the Truist Balance Buffer work?
The Balance Buffer, available with Truist One Checking, allows eligible clients to overdraw their account by up to $100 without a fee. It's an automatic feature once you meet the qualification criteria (account opened for 35+ days, positive balance, and a single direct deposit of $100+ within the last 35 days).
How often do I need a direct deposit to maintain the Truist Balance Buffer?
To remain qualified for the Balance Buffer, you need a single direct deposit of at least $100 made within the last 35 calendar days.
How to link a savings account for Truist Overdraft Protection?
You can link a Truist savings or money market account to your checking account for Overdraft Protection through Truist online banking, the mobile app, by calling customer service, or visiting a branch.
How to manage my Truist account to prevent future overdrafts?
Beyond setting up alerts and protection, actively manage your finances by creating a budget, tracking all your spending, and regularly reconciling your account to ensure your records match the bank's. Consider setting up automatic transfers to savings to build a cushion.
