Making Sense of Extra Day Grace Period

We understand life happens. Sometimes, even when you're monitoring your money very closely, an overdraft occurs.

If you do overdraw your account, you can avoid a fee by promptly adding money to your account on the same day the overdraft occurs.

And with our Extra Day Grace Period, you have an additional business day to make deposits to cover your overdrafts and avoid overdraft fees.

If your available balance as of midnight Eastern Time on any business day is enough to cover the prior business day's overdrafts, we'll waive the overdraft fees.

Here's how it works.

On Thursday, your available balance is $50. That night, we pay a check you've written for $80, leaving your account overdrawn by $30 and potentially incurring a $35 overdraft fee.

On Friday, we receive your deposit of $500 and you don't have other pending debits, such as debit card purchases. We'll waive the overdraft fee since your available balance at midnight Eastern Time covers yesterday's overdraft.

If you only partially cover your overdrafts, you may still incur overdraft fees so be sure to deposit enough to cover all your outstanding balances. Extra Day Grace Period applies to your overdrafts in the order they post to your account.

For example, say you have three overdrafts of $100, $200, and $50 that post in that order and you make a deposit of $350 before midnight Eastern the next business day. Extra Day Grace Period applies $350 to cover all your overdraft transactions and you will not be charged any overdraft fees.

But, if you have the same three overdrafts of $100, $200, and $50 and you only make a deposit of $150 before midnight the next business day, Extra Day Grace Period applies your $150 deposit to your first overdraft, but it does not cover the remaining two. You will be charged two overdraft fees.

Sure, no one plans on overdrafts or overdraft fees, but these tips can help you avoid them. © 2022 Wells Fargo Bank, N.A. Member FDIC.

Our overdraft fee for Consumer accounts is $35 per item (whether the overdraft is by check, ATM withdrawal, debit card transaction, or other electronic means), and we charge no more than three overdraft fees per business day.

Overdraft fees are not applicable to Clear Access Banking accounts. The overdraft fee for Wells Fargo Teen Checking accounts is $15 per item and we charge no more than two fees per business day.

The payment of transactions into overdraft is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is overdrawn or you have had excessive overdrafts. You must promptly bring your account to a positive balance.

All deposits are subject to the bank's funds availability policy, including applicable holds and cutoff times.

Available balance is the most current record we have about the funds that are available for your use or withdrawal. It includes all deposits and withdrawals that have been posted to your account, then adjusts for any holds on recent deposits and any pending transactions that are known to the Bank. This balance may not reflect all of your transactions, such as checks you have written or debit card transactions that have been approved but not yet submitted for payment by the merchant.