Will Banks Waive Overdraft Fees in 2026? Here's What You Need to Know
Several major US banks have eliminated or reduced overdraft fees, bringing relief to customers who occasionally overdraw their accounts. Capital One stopped charging overdraft fees entirely in early 2022, forgoing a $150 million annual revenue stream. Chime offers fee-free overdrafts up to $200 through its SpotMe feature for eligible users. Citi eliminated overdraft, returned item, and overdraft protection fees in 2022, while Bank of America made broad changes that year, including eliminating non-sufficient funds fees and cutting overdraft fees.
Banks like Huntington now limit fees to $15 per occurrence, up to three times a day since July 2022. PNC caps them at one $36 fee per day with its Low Cash Mode. Regions provides Overdraft Grace to restore balances to zero by the next business day without fees. Santander skips fees for overdrafts under $100 since 2021, and Truist offers fee-free checking with a $100 negative balance buffer.
Customers can sidestep fees by opting out of overdraft protection, which declines transactions rather than authorizing them and charging later. Banks often waive fees for those with direct deposits or minimum balances, and refunds remain possible for errors or first-time issues--just contact customer service. These approaches help reclaim money, choose stronger accounts, and cut risks heading into 2026.
Banks That Have Eliminated or Reduced Overdraft Fees
A number of banks have made firm moves to eliminate or limit overdraft fees, giving customers clearer choices. These changes, rolled out mostly between 2019 and 2022, continue to hold as policies settle into 2026. See the table below for details.
| Bank | Policy | Metric/Buffer | Year | Source/Link |
|---|---|---|---|---|
| Capital One | Stopped charging overdraft fees | Ended $150M annual revenue | Early 2022 | Bankrate |
| Chime | SpotMe allows overdraft up to $200 without fees for eligible users | Up to $200 | Launched 2019 | Bankrate |
| Huntington Bank | Reduced overdraft and NSF fees to $15 per occurrence, max 3 per day | $15 per occurrence, 3x/day | July 2022 | Bankrate |
| PNC Bank | Low Cash Mode limits overdraft fees to one per day | $36 max per day | N/A | Bankrate |
| Regions Bank | Overdraft Grace allows restore to $0 by next business day end | N/A | N/A | Bankrate |
| Santander Bank | No-fee overdraft threshold increased | Under $100 overdrawn | 2021 | Bankrate |
| Bank of America | Eliminated NSF fees and reduced overdraft fees | N/A | 2022 | Bank of America newsroom |
| Citi | Eliminated overdraft, returned item, and overdraft protection fees | N/A | 2022 | Business Insider |
| Truist | Fee-free checking accounts with $100 negative balance buffer | $100 buffer | N/A | American Banker, Business Insider |
Policies differ by eligibility--for instance, Chime's SpotMe requires direct deposits, and PNC's features tie to accounts like Virtual Wallet. Overdraft fees still make up a notable share of some banks' profits, such as around 10% at Regions in 2024, while Truist saw a 22.4% revenue drop in the first nine months of 2025 compared to 2024.
Trends in Overdraft Fee Reductions and Revenue Impacts
The banking sector has undergone major shifts in overdraft practices. Revenue from overdraft and non-sufficient funds fees has fallen more than 50% from pre-pandemic levels, yielding about $6 billion in annual savings, as noted in the Federal Register in 2024. Bankrate's 2025 data pegs the average overdraft fee at $26.77.
Roughly 9% of account holders drive most of these fees. Banks have cut fees in many cases, but results vary: Bank of America's overdraft revenues dropped 97% since 2009, and Truist saw a 22.4% decline through the first nine months of 2025 versus 2024. Others, like Regions, kept overdraft fees at about 10% of profits in 2024, with upticks at banks such as TD and Citizens in 2025-2026 data. This points to ongoing pressure for cuts, though not across the board.
How to Avoid Overdraft Fees or Get Them Waived
Customers have reliable ways to dodge overdraft fees or seek waivers. Opting out of overdraft protection declines debit card and ATM transactions that would overdraw, as CNBC outlines, avoiding charges altogether.
Qualify for waivers by setting up direct deposits or keeping minimum balances, following FDIC guidance. To recover fees, reach out to customer service right away for refunds on errors, first-time overdrafts, or tough circumstances, per Business Insider. Keep a buffer in your account, link it to savings for transfers, or check balances through apps. For the long haul, accounts from no-fee banks offer solid protection.
Choosing a Bank or Account to Minimize Overdraft Risks
Picking the right bank or account means weighing overdraft policies, fee caps, buffers, and requirements. Banks that fully eliminate fees--like Capital One, Chime, or Citi--fit those seeking no risk of charges. For occasional overdrafters who qualify, reduced options include Huntington ($15 limit, three per day), PNC ($36 daily max), Regions (Grace period), Santander ($100 threshold), Truist ($100 buffer), or Bank of America (NSF eliminated).
At any bank, opt out of overdraft protection to block risky transactions. Link checking to savings for automatic transfers, and look for grace periods or buffers. Base your choice on habits: steady balancers may favor no-fee setups, while others gain from caps. Always check policies directly, as they affect costs alongside monthly fees and more.
FAQ
Will any banks completely waive overdraft fees in 2026?
Yes, banks like Capital One, Chime (via SpotMe up to $200 for eligible users), and Citi have eliminated overdraft fees, with changes from 2019-2022 still in effect.
Which banks have reduced overdraft fees the most?
Huntington cut to $15 per occurrence up to three times a day in 2022, PNC to $36 max per day, Santander set a $100 no-fee threshold in 2021, and Bank of America reduced fees while eliminating NSF in 2022.
How can I get my bank to refund an overdraft fee?
Contact customer service promptly, explaining if it's an error, first-time occurrence, or personal situation; banks often refund in such cases.
What is the average overdraft fee in 2026?
The average stands at $26.77, based on Bankrate's 2025 data.
Should I opt out of overdraft protection?
Yes, opting out declines transactions that would overdraw, preventing fees entirely.
How much have banks saved from overdraft fee reductions?
Industry-wide overdraft and NSF revenue has dropped over 50% versus pre-pandemic levels, saving about $6 billion annually, per the Federal Register in 2024.
To apply these insights, review your bank's policy and opt out if needed, or explore switching to a no-fee account. Track balances daily and request any eligible refunds soon.