Wells Fargo allows overdrafts, but charges a fee and requires you to set it up first
Wells Fargo does permit overdrafts on checking accounts, but only if you have overdraft protection enabled. Without it, transactions that would overdraw your account are simply declined. If you turn on overdraft protection, Wells Fargo will cover the shortfall — and charge you a fee for doing so.
The bank offers two ways to cover overdrafts: linking a savings account or money market account to your checking account, or using their overdraft line of credit. The first option costs nothing if you transfer funds in time. The second option triggers an overdraft fee.
You must opt in to overdraft protection yourself. Wells Fargo does not automatically enable it, and the process takes a few minutes through their website, mobile app, or by calling their customer service line.
Key Takeaways
- Wells Fargo overdraft protection is optional and must be turned on through your online account, mobile app, or by phone before overdrafts will be covered.
- Linking a savings or money market account to your checking account lets you cover overdrafts with no fee, as long as you have funds available.
- If you use Wells Fargo's overdraft line of credit instead, you pay a per-transaction fee each time the bank covers a shortfall.
- Without overdraft protection enabled, transactions that would overdraw your account are declined at the point of sale or ATM.
- Wells Fargo charges the same overdraft fee whether the overdraft is $1 or $100, so small overages cost the same as large ones.
Linking a savings account to cover overdrafts
The simplest way to use overdraft protection at Wells Fargo is to link a savings account or money market account to your checking account. When a transaction would overdraw your checking account, Wells Fargo automatically transfers funds from the linked account to cover it.
This method has no fee as long as you have money in the linked account. You only pay if the transfer fails because the savings account is empty — in that case, you are charged the standard overdraft fee on the checking account.
To set this up, log into your Wells Fargo online account, go to the checking account settings, and look for the overdraft protection or linked account option. You can choose which savings account to link and how much of a cushion to keep. Some customers link a small amount — say $500 — so they are protected against minor overages but not large ones.
Wells Fargo's overdraft line of credit
If you do not have a linked savings account or prefer not to use one, Wells Fargo offers an overdraft line of credit. This is a small credit line the bank extends to cover overdrafts. When you overdraw, the bank lends you the money and charges you a fee.
Wells Fargo's overdraft fee is charged per transaction, not per day. The exact amount varies by account type and region, so check your account disclosures or call Wells Fargo directly to confirm the current fee. The fee applies whether you overdraw by $5 or $500.
You do not need to do anything to use this option once it is set up — overdrafts are simply covered and the fee appears on your statement. However, you must have overdraft protection enabled in the first place, or the transaction will be declined instead.
How to turn on overdraft protection
Overdraft protection is not automatic at Wells Fargo. You have to enable it yourself through one of three channels: your online account, the mobile app, or by phone.
Online: Log into Wells Fargo's website, select your checking account, go to account settings or preferences, and look for overdraft protection or overdraft options. You will see choices for linked account protection or overdraft line of credit. Select which method you want and confirm.
Mobile app: Open the Wells Fargo app, tap your checking account, select settings or account details, and find the overdraft protection menu. The steps are similar to the website version.
By phone: Call Wells Fargo customer service at the number on the back of your debit card. A representative can enable overdraft protection and explain your options. This is useful if you have questions about fees or want to set limits on how much the bank will cover.
What happens if you overdraft without protection enabled
If overdraft protection is turned off, Wells Fargo will decline transactions that would overdraw your account. This happens at the point of sale, at an ATM, or during an online purchase. Your card is simply rejected, and no fee is charged because no overdraft occurs.
Declined transactions can be inconvenient — your payment fails, you may face late fees from the merchant, or you look unprepared at checkout. However, declining transactions is how Wells Fargo protects you from overdraft fees if you do not want overdraft protection.
Some customers prefer this approach because it forces them to stay aware of their balance. Others find it embarrassing or disruptive. The choice is yours to make when you set up your account.
Overdraft fees and limits
Wells Fargo charges a fee each time it covers an overdraft using the overdraft line of credit. The fee is the same regardless of the amount overdrawn. Wells Fargo also limits how many overdraft fees you can incur in a single day — typically four to six, depending on your account type — so even if you make many small overdrafts in one day, you pay only a few fees, not one per transaction.
If you use the linked savings account method instead, there is no fee as long as the savings account has funds. This makes it the cheaper option for people who overdraft occasionally.
Check your account disclosures or the Wells Fargo website for the exact current fee amount and daily limit, as these can change and may differ by account type.
Frequently Asked Questions
Can I turn off overdraft protection after I turn it on?
Yes. You can disable overdraft protection at any time through your online account, app, or by calling Wells Fargo. Once it is off, transactions that would overdraw your account will be declined instead of covered.
What if I overdraft and do not have a linked savings account?
If overdraft protection is enabled but you have no linked savings account, Wells Fargo will use its overdraft line of credit to cover the shortfall and charge you the overdraft fee. If overdraft protection is disabled, the transaction will be declined.
Does Wells Fargo charge a fee if I transfer money from savings to checking to cover an overdraft myself?
No. If you manually transfer funds from a savings account to your checking account, there is no overdraft fee. The fee only applies when Wells Fargo covers the overdraft on your behalf using the overdraft line of credit.
How long does it take to set up overdraft protection?
Setting up overdraft protection through the online account or app is immediate — it takes a few minutes and is active right away. If you call, a representative can enable it during the call.
Can I set a limit on how much Wells Fargo will let me overdraft?
If you use a linked savings account, you can set a minimum balance to keep in that account, which effectively limits overdrafts. If you use the overdraft line of credit, the limit is set by Wells Fargo based on your account history and creditworthiness, and you cannot change it yourself.