Overdraft services help when you don’t have enough funds in your account to cover your payments.
When you open a checking account at TD Bank, there are options for how you operate your account if your account goes into arrears. Our guide provides you with everything you need to know to use this system to your advantage.
About TD Bank
This trusted bank was established in 1955 through the merger of The Dominion Bank and the Bank of Toronto. TD Bank is one of the ten largest banks in North America and one of two Big Five banks founded in Toronto. The other bank is the Canadian Imperial Bank of Commerce.
What Type of Accounts Does TD Bank Offer?
TD Bank caters to individual banking needs and offers a range of accounts, from basic savings and checking accounts to borderless. You can bank with TD Bank online, on mobile, or in person. There is bound to be an account with TD Bank to meet your financial needs, and checking accounts automatically come with overdraft services to help you manage your finances when your account is short on funds and you have bills to pay.
How Much Are The Overdraft Fees?
TD Bank overdraft fees can cost you $35 or more for each transaction. These fees are charged every time you overdraw by more than $5.00, and these charges can add up and seriously affect your cash flow and budget.
If you overdraw your account and don’t have enough money in your account, your charges are covered by TD Bank in the form of an overdraft, or you will be charged a fee for nonsufficient funds. Nonsufficient funds fees differ from overdraft fees, and NSF fees are generally between $10 and $40.
What TD Bank Charges Look Like on Your Checking Statement
Overdraft fees are shown at the end of the account summary section on your bank statement. Returned item fees are also shown here. This summary does not appear on commercial, business, or government banking statements.
Below is what will appear on your bank statement as follows:
|Total for This Period||Total Year To Date|
|Total Overdraft Fees||$105.00||$170.00|
|Total Returned Items Fees (NSF)||$0.00||$35.00|
You can easily save and print your online bank statements on EasyWeb, or you can opt to receive paper statements. Here’s how:
- Download Adobe Reader, if you do not have it installed
- On EasyWeb, go to the statements and documents page.
- Navigate to the desired statement
- View, or select print and save. If you are printing a paper copy, select the printer icon. If you are using Adobe Reader, you can save a copy of your statement by selecting the download icon or the save icon.
What Are Some Ways of Avoiding TD Bank Overdraft Fees?
TD Bank Overdraft Protection Features
There are many different ways of managing your bank account. TD Bank checking accounts come with standard overdraft protection.
You can also elect to use additional services. The advanced features may seem like a good option, especially when you need quick cash. Knowing how these fees can quickly add up and how they work will enable you to get the most out of this system and will save you money long term.
Savings Overdraft Protection
If you overdraw your checking account often, you can expand the overdraft protection of your account by connecting your savings account and then choosing the overdraft protection feature. Overdraft protection fees are charged at $3 per day that you are overdrawn. This is much cheaper than paying $35 overdraft fees for each transaction.
TD Bank Debit Card Advance
This overdraft feature allows an overdraft to be linked to your debit card. By enrolling in this feature, you authorize your financier to authorize and pay one-time transactions when you do not have enough funds in your account. Transactions can be made by ATM, debit card, check, bank withdrawal in person, or electronic means. Fees are the same as overdrafts on checking accounts.
Keep a Careful Eye on Your Bank Account and Finances
Monitoring your bank account with the TD Bank App or online banking keeps you on top of your finances. The easiest way of dealing with overdraft fees is to avoid fees altogether. If this is not possible, at least try to limit them to affordable payments. If you regularly overdraw your account, you can fall into a cycle of debt that is hard to break. The average cost that incurs an overdraft fee is just $24.00, and it really isn’t worth it when there is such a hefty price to pay.
Will TD Bank Refund My Overdraft Fees?
If you end up over-drafting and getting charged a fee, there is some hope. Below are some ways to avoid or get your fees refunded.
- Set up customized email alerts so that you are notified whenever your balance gets under a certain amount. This can be any amount that you set.
- Use TD Beyond Checking with an overdraft payback feature. If you use this service, you will be reimbursed automatically for each calendar year’s first two overdrafts.
- Negotiate and get your fees waived. The bank may be willing to do this if you simply ask, especially if it is the first time you have incurred an overdraft fee. Your bank will want to keep you as a customer.
Be polite and factual when you contact the bank and remind them how long you have been a customer. If this is a rare occurrence, be sure to let them know. Ask the bank for assistance in waiving the fees and decreasing them in the future, and they will be more than happy to help in most cases.
Bank fees can often be reversed with a phone call that should take no more than 10 minutes of your time.
Are There Rules and Regulations on Overdraft Fees at TD Bank?
The overdraft fee policy states that fees can be charged multiple times per day, up to a maximum of five times. This can amount to up to $175 worth of fees every day. If you overdraw your account by less than $5, no overdraft fees are charged for this transaction. You agree to these terms and conditions when you sign up for an account.
Pros and Cons of Using a TD Bank Overdraft
- When cash flow is slow, an overdraft will ensure that your bills get paid on time. If you are in business, this allows your business to continue to flow smoothly.
- If you have many bills coming through at certain times of the year, an overdraft can help see you through.
- Overdrafts are helpful if you do not get paid on a regular day or receive the same income every week– i.e. if you have a small business or work on a commission basis.
- When you carefully monitor and manage your finances, you will not receive overdrafts, so no overdraft fees will be charged.
- Many fees can be reversed.
- Overdrawing your account by $5 or less is covered by TB Bank. No fees are incurred.
- Overdraft fees can add up. If you are not monitoring your bank statements, this can seriously affect your cash flow.
- If your account is at a negative balance, or there is not enough money to cover your bills, you can incur overdraft fees of up to $175 per day.
- Bank fees are avoidable, and if you can budget to pay your bills with your own funds, you will always be better off financially.
Overdraft Fees From Other Banks
Other banks also charge overdraft fees, and the terms, conditions, and payments differ from bank to bank. Clicking on the links below will give you detailed information about the overdraft protection deals and the related fees from these major financial institutions.
- Bank of America Overdraft Fee
- Chase Overdraft Fee
- Wells Fargo Overdraft Fee
- US Bank Overdraft Fee
- PNC Overdraft Fee
In conclusion, you can avoid overdraft fees by monitoring your accounts and signing up for email alerts. Knowing where your money is going is one of the first things you need to do to stay in the black and get ahead financially!
Getting just one overdraft fee is enough to cancel out any interest you earn for an entire year. Using overdraft protection is another method you can use to minimize your fees if you really need to use the overdraft feature. If you incur a charge, you can contact the bank by phone or online and request that they waive the fee. This request is more likely to be granted if you do not frequently go into overdraft.