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Federal Reserve Board of Governors

Overnight Overdrafts

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  • Policy on Overnight Overdrafts

Federal Reserve Policy on Overnight Overdrafts

Effective July 12, 2012

The Board sets forth the following penalty rate structure for overnight overdrafts:

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

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

  3. 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.

  4. An increase in the penalty fee by 1 percentage point on each overnight overdraft after the third overnight overdraft in a moving 12-month period. For example, the rate for a fourth overnight overdraft in a moving 12-month 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.

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Last update: August 10, 2012