Overdraft Services for personal
checking accounts
In order for you to make an informed decision about which Overdraft Services may be best for you, you should understand the basics of what an overdraft is and how overdrafts are handled at BMO Harris Bank.
Download and print our Overdraft Services Brochure (PDF, 350 kB).
About Overdrafts
What is an overdraft?
You have an overdraft any time you have a negative available balance in your checking account. For example, your account can become negative when you do one of the following and you don't have sufficient available funds in your account:
- use your debit card or ATM card
- write a check
- do a telephone or online transfer
- authorize an automatic payment
- get charged a fee
How overdrafts are handled at BMO Harris
At our discretion, we pay checks, automatic bill payments and other transactions that overdraw your account. We will decline ATM and everyday debit card transactions that would overdraw your account unless you select the Overdraft Program for ATM and Everyday Debit Card Transactions (opt-in) described on the Overdraft Program tab. We do not guarantee that we will always pay or authorize any type of transaction even if we have paid similar items in the past. For example, we typically do not pay items that overdraw your account if you are already being assessed a Consecutive Day Overdraft Fee.1
You agree to immediately repay us the amount of any overdraft, including fees. Any deposits into your checking account will be used to repay the overdraft and associated fees.
Please see the Fees tab for fees associated with overdrawing your account.
Helpful Tips
Avoid overdrafts with good money management
Here are a few easy ways to keep track of your funds in your BMO Harris checking account:
- Monitor your transactions, check your account balances on a daily basis and transfer available funds between your eligible BMO Harris accounts anytime you need to, 24/7:
- Use BMO Harris Online Banking®
- View account balances, transfer funds and more
- Use BMO Harris Mobile Banking®
- Access via SMS text and our downloadable app5
- Use BMO Harris Bank by Phone® at 1-888-340-2265
- Use BMO Harris Online Banking®
Other good ideas
- Track your daily spending and establish a budget.
- Keep enough funds in your account when writing checks, because checks now clear faster than ever.
- Consider using direct deposit for your paycheck and other recurring deposits. Funds may be available faster, and you don't have to wait until you can get to the bank.
- Download our BMO Harris Mobile Banking® app and you can deposit checks using your device.6
- Consider a BMO Harris Smart MoneyTM Account: If you don’t want to incur overdraft and item returned fees on your account, consider the BMO Harris Smart MoneyTM Account. When you have a BMO Harris Smart MoneyTM Account, we will return as unpaid items that overdraw this account and will decline ATM and everyday debit card transactions that would overdraw it. If we are unable to return an item that overdraws your account, we will use our discretion to pay it and you will not be charged a fee; and if your account becomes overdrawn, we will not charge you any overdraft or related fees.
As a reminder
The order in which you write checks and authorize other withdrawals is not necessarily the same order in which funds are subtracted from your account. The order in which items are posted to your account affects whether you incur overdraft and item returned fees. Read Section 2.C of the Deposit Account Agreement for Personal and Business Accounts for details on the order in which items are posted to your account.
Overdraft Protection Services
Overdraft protection is the kind of service you rarely think about until the moment you need it. For example, you might forget to transfer funds to pay your bills, or just lose track of the balance in your account.
You may avoid paying overdraft and item returned fees and enjoy peace of mind with BMO Harris Overdraft Protection Services. We offer two Overdraft Protection Services:
- Overdraft Funding — transfers funds from a linked deposit account
- Overdraft Protection Line of Credit — transfers funds from a line of credit
Both services may help meet your needs, and you only pay for them when you use them. These Overdraft Protection Services can transfer funds to pay checks, ACH, bill payments, transfers, ATM and everyday debit card transactions.
It's important to realize that although Overdraft Protection Services have fees associated with their use, they can be invaluable in certain circumstances and may be less expensive than overdraft and item returned fees. Best of all, it costs nothing to keep them available, just in case you need them.
Compare Overdraft Protection Services
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| Overdraft Funding3 | Overdraft Protection Line of Credit |
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* Even if your account has an Overdraft Protection Service, the fees listed on the Fees tab for overdrawing your account still apply if you do not have sufficient available funds or credit availability for us to make a transfer or an advance. If you have Overdraft Funding, the fees listed on the Fees tab also apply if you don't have sufficient available funds to pay the Overdraft Funding Transfer Fee or if you have reached the transaction limitations for the linked account that the funds would be transferred from. If you have an Overdraft Protection Line of Credit and do not have sufficient credit availability to cover an item(s), the item(s) will be returned, and Item Returned Fees would apply.1
Overdraft Program for ATM and Everyday Debit Card Transactions*
By opting in to this Program, you authorize us to use our discretion to pay ATM and everyday debit card transactions that would overdraw your account.
If you do opt-in, and we use our discretion to pay those transactions, the Overdraft Fee and Consecutive Day Overdraft Fee, described on the Fees tab, will apply to the transactions.2
You can opt-in to the Overdraft Program for ATM and Everyday Debit Card Transactions or revoke your election by talking with a BMO Harris Banker or logging in to BMO Harris Online Banking® and modifying the Overdraft Program preferences on your account.
*This Program is not available for the BMO Harris Smart MoneyTM Account.
Fees Associated with Overdrawing Your Account*
Overdraft Fee: You will be charged a $36 fee for each item we pay (regardless of the amount of the item) when your account is overdrawn more than $5 after all items are posted to the account. We will charge a maximum combined total of four (4) Overdraft Fees and/or Item Returned Fees (NSF) per business day.4 This fee does not apply to ATM and everyday debit card transactions unless you authorized us to pay them. This fee does not apply to bank fees and service charges that overdraw your account.
Item Returned Fee (NSF fee): You will be charged a $36 fee each time we return an item unpaid because your account does not have sufficient available funds to pay the item. This fee does not apply to declined ATM and everyday debit card transactions. We will charge a maximum combined total of four (4) Overdraft Fees and/or Item Returned Fees (NSF) per business day.4
Consecutive Day Overdraft Fee: You will be charged a $7 fee for each business day4 your account is overdrawn in any amount after your account is overdrawn for three (3) consecutive business days. You will be charged this fee even if your account is only overdrawn due to bank fees and service charges. A maximum of ten (10) Consecutive Day Overdraft Fees will be assessed for each occasion your account remains overdrawn.
*These fees do not apply to the BMO Harris Smart MoneyTM Account.
This information does not apply to BMO Harris Health Savings Accounts®
- If for certain reasons we are unable to return an item that overdraws your account, we will pay it and you will be charged any applicable fee associated with paying the item. If the item is an ATM or everyday debit card transaction, you will not be charged the Overdraft Fee if you have not authorized us to use our discretion to pay these types of transactions.
- BMO Harris will automatically decline ATM and everyday debit card transactions that would overdraw your account and no fee will be charged if you have not opted-in for the Overdraft Program for ATM and Everyday Debit Card Transactions.
- CDs, IRAs and BMO Harris Health Savings Accounts® are not eligible to be linked under Overdraft Funding. Transaction limitations apply to savings and money market checking accounts.
- Business days are Monday through Friday except federal holidays.
- Message and data rates may apply. Contact your wireless carrier for details. Users must be BMO Harris Online Banking® customers.
- BMO Harris Mobile Deposit is available using the BMO Harris Mobile Banking smartphone app. This service may not function on older devices. Users must be a BMO Harris Online Banking® customer who have had a BMO Harris account opened for more than 5 calendar days. Deposits are not immediately available for withdrawal. For details, please see the BMO Harris Mobile Banking End User Terms found at bmoharris.com/legal.
For additional information about overdrafts, please read the Deposit Account Agreement for Personal and Business Accounts in the BMO Harris Handbook.
