Overnight Overdrafts
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 Policy on Overnight Overdrafts
Federal Reserve Policy on Overnight Overdrafts
The Board sets forth the following penalty rate structure for overnight overdrafts:

An overnight overdraft penalty rate of the primary credit rate plus 4 percentage points (annual rate).

A minimum penalty fee of 100 dollars, regardless of the amount of the overnight overdraft. The minimum fee is administered per occasion.

A multiday charge for overnight overdrafts before a weekend or holiday whereby the charge is assessed for each calendar day the overnight overdraft is outstanding.
 An increase in the penalty fee by 1 percentage point on each overnight overdraft after the third overnight overdraft in a moving 12month period. For example, the rate for a fourth overnight overdraft in a moving 12month period would be the primary credit rate plus 5 percentage points and the rate for a fifth overnight overdraft would be the primary credit rate plus 6 percentage points.
Last update:
August 2, 2013