- 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 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.
Last update: August 2, 2013