The ability to pay bills and pay people is an essential part of your checking account. But with the current interest rates on the checking account being so low, many of us typically don’t keep most of our hard-earned money in our checking accounts. This is why having an overdraft protection on your checking account is more important than ever.
What is an overdraft protection?
An overdraft occurs when you withdraw more money than what’s currently available in your account. This happens most frequently when writing a check or using your debit card since you may not know the exact amount of the current account balance.
An overdraft protection is a service that banks and credit unions offer in the event that a transaction exceeds your balance. With this service, funds from a linked savings or other deposit account are transferred into your checking to cover the amount, usually for a nominal fee known as the overdraft fee.
Overdraft protection from Nationwide
At Nationwide Bank, the fee is assessed per day. For example, if you overdraw your checking account on three occasions in a single day, there will be one $3 bank overdraft fee charged. However, if you overdraw your account on three different days, there will be three separate $3 fees charged.
The overdraft fee for Nationwide Member CheckingSM is $0. Plus, if you open up and link a Nationwide Regular Savings account or Money Market account for overdraft protection, there are more benefits you receive on the Nationwide Member CheckingSM for being a loyal member.
What’s the difference between an overdraft fee and a nonsufficient funds (NSF) fee?
These two may sound similar, but they are different types of fees. Nonsufficient Funds (NSF) fee is the charge you get hit with if you do not have overdraft protection on your account and you overdraw your account. The nonsufficient funds fee for Nationwide accounts is $25 for each occurrence.
On the other hand, an overdraft fee is the fee that is assessed when the overdraft service is activated and the funds are transferred to cover the overdrawn amount. The fee for this transfer is typically much lower than the nonsufficient funds fee and is a great safety net for your money.
How to set up overdraft protection
Setting up bank overdraft protection is easy. To add overdraft protection to your Nationwide checking account, you can either add it when you are applying for a new account or for an existing Nationwide checking account by contacting our Customer Care Center at 1-877 I-BANK-NW (1-877-422-6569), weekdays 8 a.m. to 8 p.m. ET.
Please specify Checking Account(s) and a single Funding Account. For consumer (non-business) accounts, the Funding Account may be:
Overdraft Protection will become effective after we have received your request and had a reasonable time to act upon it.