Wells Fargo does not set a fixed overdraft limit
Wells Fargo does not tell you in advance how much you can overdraft. Instead, the bank decides on each transaction whether to approve it or decline it based on your account history, the size of the overdraft, and other factors they do not publicly disclose. This means you cannot call and ask "what is my overdraft limit?" and get a number back.
What you can control is whether overdrafts happen at all. Wells Fargo offers an Overdraft Protection service that links your checking account to a savings account or credit line. If you overdraft, the bank transfers money from the linked account instead of charging you an overdraft fee. You can also simply opt out of overdraft coverage entirely, which means transactions will decline if you do not have the funds.
Key Takeaways
- Wells Fargo does not publish a maximum overdraft amount — the bank approves or declines each overdraft based on your account history and transaction size.
- Overdraft Protection transfers money from a linked savings account or credit line instead of charging a fee, and you must set this up yourself.
- Without Overdraft Protection, transactions will decline if your balance is too low, and you will not be charged an overdraft fee.
- Each overdraft that is approved costs $35 per transaction, and the bank can charge up to three fees per day.
- You can contact Wells Fargo to request that overdrafts be declined rather than approved, which prevents fees but may affect your credit if checks bounce.
How Wells Fargo decides whether to approve an overdraft
The bank looks at your account history — how long you have banked there, whether you have overdrafted before, and how quickly you repaid past overdrafts. A customer with a long, clean history is more likely to have a transaction approved when the account goes negative. A customer with multiple overdrafts in the past few months is less likely.
Wells Fargo also considers the size of the overdraft. A $15 overdraft is more likely to be approved than a $500 overdraft. The bank is betting it can collect the fee and that you will deposit money soon enough to cover the negative balance. Large overdrafts are riskier for the bank, so they are declined more often.
The time of day and day of the week also matter. Transactions posted overnight or on weekends may be held and processed the next business day, which changes whether they overdraft your account. Wells Fargo processes transactions in the order that benefits the bank most — not the order you made them — so the sequence in which you spend money affects which transactions overdraft.
What Overdraft Protection actually does
Overdraft Protection is a service you set up yourself through Wells Fargo's website or by calling the bank. You link your checking account to either a savings account you own at Wells Fargo or to a Wells Fargo credit line. When a transaction would overdraft your checking account, the bank automatically transfers money from the linked account instead.
If you link a savings account, the transfer is free and happens instantly. If you link a credit line, the transfer is also free, but you are borrowing money and will pay interest on the balance. You can set a maximum transfer amount — for example, you might allow only $500 in automatic transfers per day — so you do not accidentally borrow more than you intended.
Overdraft Protection only works for transactions the bank can predict in advance: bill payments, checks, and ACH transfers. It does not cover debit card purchases or ATM withdrawals. If you overdraft on a debit card purchase and do not have Overdraft Protection, the transaction will decline at the register.
Overdraft fees and how they add up
Each transaction that overdrafts your account and is approved by Wells Fargo costs $35. The bank can charge up to three overdraft fees per day, which means a bad day of spending could cost you $105 in fees alone. These fees are charged on top of the negative balance, so your account goes deeper into the red.
Overdraft fees compound quickly. If you overdraft by $50 and are charged a $35 fee, your balance is now negative $85. If another transaction overdrafts you the next day, you are charged another $35 fee on top of that. If you do not deposit money soon, the negative balance grows and the bank may close your account or send it to collections.
Wells Fargo also charges a fee if your account stays negative for more than five business days. This is called a Sustained Overdraft Fee, and it is $35. So if you overdraft on a Monday and do not deposit money until the following Monday, you will be charged both the overdraft fee and the sustained overdraft fee.
How to prevent overdrafts or opt out of overdraft coverage
The simplest way to prevent overdraft fees is to opt out of overdraft coverage. This means Wells Fargo will decline transactions if you do not have enough money in your account. You will not be charged a fee, but the transaction will not go through — your debit card will be declined at the register, or your check will bounce.
To opt out, contact Wells Fargo by phone, through your online account, or in person at a branch. Ask to decline overdraft coverage. The bank will confirm this in writing. Once you opt out, transactions that would overdraft will be declined, and you will not be charged overdraft fees.
If you want to keep overdraft coverage but reduce the risk of fees, set up Overdraft Protection with a savings account. This way, small overdrafts are covered by transfers from savings instead of fees. You can also set a low maximum transfer amount — $100 or $200 — so you are protected for small mistakes but not for large spending.
What happens if you stay overdrawn for a long time
If your account stays negative for more than 60 days, Wells Fargo may close the account. The bank will send you a notice before closing it, usually giving you 10 to 14 days to bring the balance to zero. If you do not, the account is closed and any remaining negative balance is sent to a collection agency.
A closed account and a collection account both damage your credit score. Future banks will see that you had an account closed due to a negative balance, and they may decline your application for a new account. Some banks use a system called ChexSystems that tracks closed accounts and overdraft history, and other banks check this system before opening new accounts.
If your account is closed and sent to collections, you will receive calls and letters from the collection agency. You can negotiate a settlement — paying less than the full amount owed — or set up a payment plan. Paying the debt does not remove the closed account from your record, but it stops the collection calls.
Frequently Asked Questions
Can I call Wells Fargo and ask what my overdraft limit is?
No. Wells Fargo does not set a fixed overdraft limit. The bank decides on each transaction whether to approve or decline it based on your account history and the transaction size. You can ask a representative whether you have Overdraft Protection set up, but they cannot tell you a maximum overdraft amount.
Does Wells Fargo charge a fee if a transaction is declined?
No. If you opt out of overdraft coverage or if the bank declines a transaction because you do not have enough funds, there is no fee. You are only charged if the bank approves the overdraft. A declined transaction costs nothing.
If I set up Overdraft Protection with a savings account, will I be charged interest?
No. Transfers from a savings account to cover an overdraft are free and do not cost interest. You are only charged interest if you link a credit line instead of a savings account, because you are borrowing money on the credit line.
What is the difference between an overdraft fee and a sustained overdraft fee?
An overdraft fee ($35) is charged each time a transaction overdrafts your account. A sustained overdraft fee ($35) is charged if your account stays negative for more than five business days. You can be charged both in the same month if you overdraft multiple times and stay negative for a week.
If I opt out of overdraft coverage, will checks I write bounce?
Yes. If you opt out of overdraft coverage and write a check when you do not have enough funds, the check will bounce. The payee will not receive the money, and you may be charged a returned check fee by Wells Fargo. The payee may also charge you a fee for the bounced check.