How much can you overdraw an account by?

Question

i wanted to know if your using a debit card and your purchasing something $50 over the amount you actually have in your account, will it decline or will it still process(approve) and overdraw your account.

Answer 1

Depends on the bank. Read the fine print of your agreement with them. Many offer overdraft protection between $300-$500 but not all do. If you do overdraft and they cover it (this is at their discretion whether they will or not) then they typically charge an overdraft fee. That means that $50 may cost you $75-$100 instead. Even a dollar over will cost you that fee so be very careful about doing this. They will charge this fee on every single transaction that is covered. If they cover $50 worth of overdrafts from 4 different transactions and they charge $30/overdraft, you would be looking at $170 to zero your account out.