A Beginner’s Guide to a TD Bank Overdraft Fee

Jasmine from Team Brigit

June 16, 2019

An TD Bank overdraft fee is charged when TD Bank pays for a transaction or returns it when you spend more money that is in your TD Checking account.

“A $35 TD Bank overdraft fee applies to each transaction that overdraws your available account balance.”

A $35 TD Bank overdraft fee applies to each transaction that overdraws your available account balance by more than $5, whether that transaction is made by debit card, check, in-person withdrawal, or other electronic means. TD limits the number of fees it charges to 5x day. However, these fees can quickly add up and total $175 a day if left unchecked.


TD Bank’s Overdraft Protection Services

TD Bank offers different ways to manage your checking account in case of an overdraft. Each TD Bank checking account comes with Standard Overdraft Protection, and TD Bank allows you to opt in to additional services such as TD Debit Card Advance and Savings Overdraft Protection. Although at first glance these services may seem as a good option when you are in need of quick cash, TD Bank overdraft fees can quickly add and knowing how they work can help you save money in the long run.


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TD Bank offers three types of Overdraft Protection Services:


1. Standard Overdraft Protection

All TD Bank checking accounts have Standard Overdraft Protection by default. When funds are not available in your checking account, the TD Bank may authorize transactions excluding ATM and one-time debit card transactions. If your balance is overdrawn beyond $5 you will be charged a $35 TD Bank overdraft fee. Up to 5 maximum fees are charged a day. This feature cannot be opted out of.

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2. Debit Card Advance

A debit card advance covers one-time debit card and ATM transactions when there aren’t enough funds in your account to cover the purchase. A TD Bank overdraft fee applies on transactions that overdraw your account by $5 or less. This feature does not come with TD Bank checking account, you must opt-in to have this service.

3. Savings Account Overdraft Protection

This optional protection links your savings account to your debit checking account whenever you have insufficient funds to cover your transactions. When a transfer is made to the linked checking account you are charged $3 per day. A $35 TD Bank overdraft fee is charged for overdrawn payments beyond your joint available balance. This feature does not come with TD Bank checking account, you must opt-in to have this service.


Avoiding a TD Bank Overdraft Fee

When it comes to TD Bank overdrafts, our advice is to avoid it. Start out by tracking your spending, budgeting for your expenses, and spending less than you earn. Most chronic overdrafters fall into a cycle of debt that proves hard to come out of. The median debit purchase that leads to an overdraft is only $24. Ultimately, it’s not worth it when such a hefty price tag is attached.


In conclusion, you can avoid overdraft fees altogether by keeping track of your account activity and balance through your bank app and signing up for email alerts. However, If you do incur a TD Bank overdraft fee, you can give your bank a call, reach out online, and request that they waive the fee.


Here’s a script that will walk your through the process of asking to have your overdraft fees waived. Better yet, call your bank and opt-out of overdraft protection. Although, you cannot opt-out of the Standard Overdraft Protection, you can choose not to enroll in the other overdraft services offered by your bank. That’s right! You don’t have to have overdraft protection. Know your rights!

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