Overdrafts, Fees, and Overdraft Protection
We all make mistakes. Sometimes a mistake results in an overdraft on your account. The good news is that you can protect yourself against overdrafts and the fees charged when they happen. Explore our Let’s Talk Overdrafts video series to see what overdrafts are, how they happen, and what you can do to avoid them.
Let’s Talk Overdrafts, How They Happen, and How to Avoid Them
Let’s talk Overdrafts.
Ready? Lets go!
Overdrafts happen when money spent > money available
Sometimes overdrafts mean extra fees
The good news is: They’re usually avoidable.
To help your life stay overdraft-free, we’ll tell you what you should know about
Business days
How transactions post
How transactions post
Pending transactions
When deposits go through
So you can spend your money on your terms.
What are overdrafts?
An overdraft occurs and an overdraft fee is charged when there isn’t enough money available in your account and a transaction (i.e., payment, purchase, or check you write) goes through anyway.
Let’s talk Overdrafts and when your deposits go through
Ready? Lets go!
Your deposits go through on business days
Business days are: Monday – Friday (not including holidays)
Every business day has a cutoff time based on how you make your deposit
Usually, your money is available the next business day
Know when your deposits go through. Spend your money on your terms.
When are my deposits available?
Different types of deposits (i.e., cash, direct deposit, and checks) become available at different times.
Let’s talk Overdrafts and how pending transactions work
Ready? Lets go!
When you use your debit card, it doesn’t always post right away.
So, your account holds the money and your available balance goes down.
We call that a pending transaction
If you spend more than your account’s available balance, you may get an overdraft fee
Keep track of your available balance. Spend your money on your terms.
What is a pending transaction?
It’s a transaction you have made with your debit card or debit card number (online) which has not been posted to your account.
Let’s talk Overdrafts and how transactions post
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We post transactions in two (2) different groups
Yesterday’s transactions made after cutoff time and before midnight
Current-day Today’s transactions made before the cutoff time
Your prior day activity posts first Money in before money out
Your current-day activity posts next Money in before money out
Know the order. Spend your money on your terms.
When do transactions post?
We post transactions (deposits, transfers in, payments, and withdrawals) made to your account in two different groups: prior-day and current-day.
Let's talk Overdrafts & how to stay protected.
Ready? Let's go!
We understand that overdrafts happen
But there are a few things you can do to protect your account
By signing up for transaction and balance alerts, you can track your money in real time
Download the KeyBank mobile app to get alerts and check your balance daily
Link your checking account for additional overdraft protection
You can opt to link your checking account savings account, credit card or line of credit
There's no transfer fee if you like your savings account to your checking
For other products, there is usually a $10 transfer fee
Protect your account from overdrafts.
Spend your money on your terms.
How can I stay protected?
You can set up account alerts and link your checking account to another KeyBank account to stay protected.
How To Avoid Overdrafts and Non-Sufficient Funds
Track your balance
Know your balance before you spend. Sign on to online banking or mobile banking to check your account activity. You can also check your balance by visiting any Key ATM or by calling 1-800-KEY2YOU® (1-800-539-2968). For clients using a TDD/TTY device, please call 1-800-539-8336. Remember to consider any outstanding checks or scheduled payments
Know your Overdraft Protection options
At Key, you have options on how you’d like your account to work in an overdraft situation to help avoid fees.
Set up Alerts
Balance Alerts can help you avoid overdrafts and the fees that come with them, while Transaction Alerts can tell you when deposits and credits post to your account. Set up alerts.
Schedule a Key Financial Wellness Review®
We value you as a client and want to make sure you’re using the right account for your needs. That’s why we’re inviting you to have a Key Financial Wellness Review with one of our knowledgeable bankers.
We’re here to help you create a personalized plan so you can avoid overdrafts in the future and begin to take small steps toward financial progress.
Overdraft Protection Options
Overdraft Protection lets you link another KeyBank account to your checking account to act as a backup. Funds are automatically transferred from that account to your checking account to help pay for any overdraft transactions that may occur. Depending on which account you choose: savings, credit card, preferred credit line or HELOC — an overdraft protection transfer fee may apply.1 You will, however, save money by avoiding overdraft fees and any non-sufficient funds fees that KeyBank could charge. To back up your checking account, you can link any of the following accounts:
If you overdraw your checking account, funds can automatically transfer from your Key Active Saver® Account, Key Gold Money Market Savings®, or Key Silver Money Market Savings®, without an overdraft protection transfer fee charged.
Your KeyBank credit card can automatically transfer funds to your checking account to cover any overdrafts.
KeyBank Preferred Credit Line2
A line of credit gives you access to cash when you need it without having to apply for a loan each time. KeyBank’s Preferred Credit Line can be linked to your checking account so that funds immediately transfer if you overdraw.
Home Equity Line of Credit (HELOC)
A KeyBank Home Equity Line of Credit allows you to borrow against the equity in your home, creating a revolving line of credit you can use over and over as you repay it. When you connect your checking account to your HELOC, the HELOC can be drawn against to cover overdrafts.3
Overdraft Services
Overdraft Services are a type of overdraft coverage that we use at our discretion to pay transactions when you do not have sufficient funds in your account.
When you consent to Overdraft Services, you let us know that you want KeyBank to authorize and pay overdrafts on the following types of transactions:
- ATM transactions
- Everyday debit card transactions4
It’s important to know that we can’t guarantee we will authorize and pay every type of transaction, so you may be declined for the above types of transactions. And, if an item is returned unpaid, KeyBank may charge your account a non-sufficient funds (NSF) fee.
There are several ways to consent to Overdraft Services
Online banking
Here’s how to enroll or unenroll for Overdraft Services in Online Banking:
- Select the account you want to use.
- Click the Financial Details button at the top of your screen. You might have to click More first.
- To the right of Standard Overdraft Services Consent, click Change to update your enrollment status.
- Select Yes to enroll or No to decline. Click Next.
Mobile banking
Here's how to enroll or unenroll for Overdrafts Services using the KeyBank mobile app:
- Select the account you want to use.
- Scroll down and tap Overdraft Services
- Tap Current Status under Overdraft Consent.
- Tap Yes to enroll or No to decline. Tap Next.
Visit your local KeyBank branch
You may change your selection to No at any time by following the same steps. If you select No, ATM transactions and everyday debit card transactions that would overdraw your account will typically be declined. However, overdrafts may still be paid at our discretion on checks, automatic bill payments and recurring debit card transactions.
Decline all overdrafts
You may prevent KeyBank from paying for some transactions when your account does not contain sufficient available funds.
- Call 1-800-KEY2YOU® (539-2968)
- Visit a KeyBank branch
Common Questions about Overdraft Protection
It depends, because different types (cash, direct deposit, checks) become available at different times.
| Deposit Type | Deposit Method | Funds Availability |
| Cash | In-branch to a banker | Same business day |
| At a KeyBank ATM | Same business day | |
| Electronic payments (i.e., Payroll or Social Security benefits) | Electronic deposit/transfer | Same business day |
| Checks | In-branch to a banker | $100 same business day Remaining amount next business day |
| At a KeyBank ATM | $100 same business day Remaining amount next business day |
|
| KeyBank mobile app | Next business day |
- A business day is Monday – Friday, excluding holidays. Exceptions, such as check funds availability, may apply.
- Every business day has a cutoff depending on how you make your deposit:
- Mobile – 11 p.m. ET ATM – 7 p.m. local time
- Branch – varies by location but not earlier than 2:00 p.m. local time
- Some transactions don’t follow these rules. Check out your Funds Availability Policy for more information.
Cutoff Times
If a deposit is made before the cutoff time on a business day (which excludes Saturdays, Sundays and legal holidays) we will consider that day to be the day of your deposit. Cutoff times vary depending on how you make your deposit.
- At a KeyBank Branch: before branch closing
- At a KeyBank ATM: 7 p.m. local time
- Mobile: 11 p.m. ET:
- 7 p.m. for accounts opened in AK
- 8 p.m. for accounts opened in WA or OR
- 9 p.m. for accounts opened in CO, ID or UT
- 11 p.m. for accounts opened in all other states (IN, KY, MI, OH, FL, NY, ME or VT)
Read our Funds Availability Policy to find out more about when your deposits are available to use.
For most debit card purchases, a pending transaction will show on your account before an item is actually posted. This means the amount will be held and your available balance will decrease accordingly. So, even though your transaction has not been posted, funds are still withheld to cover the purchase. You could even be charged overdraft fees if you make other transactions that total more than your overall available balance.
At KeyBank, we post transactions in two different groups – prior-day and current-day. Prior-day transactions are posted first with deposits posted before payments and withdrawals. This generally includes any account activity that occurred after the cutoff period of the previous day and before midnight. After prior-day transactions, current-day transactions are posted with deposits first, before payments and withdrawals.
If a deposit is made before the cutoff time on a business day (which excludes Saturdays, Sundays and legal holidays) we will consider that day to be the day of your deposit. Cutoff times vary depending on how you make your deposit.
- At a KeyBank Branch: before branch closing
- At a KeyBank ATM: 7 p.m. local time
- Mobile: 11 p.m. ET
A business day is Monday-Friday, not including holidays. Each business day ends with a cutoff time for when a deposit will be considered, so we can process all client transactions in a timely manner. For example, an ATM deposit must be made by 7 p.m. or it will be considered to have been deposited on the next business day.
There are things that may delay the availability of your funds, including the total amount of your deposit, your account history and how recently you opened the account. This is one of the many ways we protect you from fraud.
Read our Funds Availability Policy to find out more about exceptions.
We assess these fees based on the number of times overdraft or non-sufficient funds transactions happen during the current and previous 11 monthly statement periods.
The first two overdraft or non-sufficient funds transactions > $33.00 per transaction
This will appear on your statement as Overdraft Item or Return Item Charge.
Three or more overdraft or non-sufficient funds transactions > $38.50 per transaction
This will appear on your statement as Tier 2 Overdraft Item or Return Item Charge.
If your account remains negative for five consecutive business days > $28.50
This will appear on your statement as a Recurring Overdraft Service Charge.
Here’s a closer look at how these fees are assessed:
- An overdraft happens in January > $33.00 fee
- No overdraft or non-sufficient funds transactions happen in the statement periods of February-October
- An overdraft happens in November > $33.00 fee
- A non-sufficient funds transaction happens in December > $38.50 fee
In total, three overdraft or non-sufficient funds transactions have happened. The first two (January and November) result in fees of $33.00 per transaction. The third (December) results in a fee of $38.50.
1
Transfer fee may apply for the following overdraft protection options: eligible savings account not including hassle-free, credit cards, preferred credit line and HELOC.
All credit products are subject to credit approval.
NMLS# 399797
2
Your credit line may not be used for overdraft protection on a KeyBank Hassle-Free Account®.
3
Not available in New York or Connecticut.
4
Excludes all checks, automatic bill payments and recurring debit card transactions.