How fee-free overdraft works on Current

Have you ever had this feeling? You swiped your debit card for a morning coffee, thinking you had just enough to cover it. The transaction went through, you got your caffeine fix, and you went about your day. But later, you checked your account balance and saw a nasty surprise: a negative balance and a $35 overdraft fee. That $5 coffee just cost you $40.

It’s frustrating. It’s expensive. And it isn’t necessary. At Current, we do not and have never charged overdraft fees. In addition, we also offer fee-free overdraft protection, offering qualified members an extra cushion once they qualify, on both their debit and credit transactions.If you are not yet eligible for fee-free overdraft protection, if you spend more than you have in your account, there is still no need to worry. The transaction will simply be declined and you won’t be charged a fee. 

Overdraft fees are a huge drain on many Americans’ wallets, especially when you’re working hard to manage your cash flow. 

Here is how fee-free overdraft protection works at Current, what overdraft fees are and why we never charge them.

What Are Overdraft Fees?

An overdraft fee is a fee many traditional banks charge when you spend more money than you have in your account. The fees are also often flat. If you overdraft your account by one dollar, you’ll be charged the same fee (upwards of $35 per transaction) as if you overdrafted $50. A few $35 charges can snowball quickly, potentially keeping people in cycles of debt, with much of your next paycheck going to simply bring your account balance positive again.

Overdrafting an account can often be an accident. Maybe an automatic subscription renewed that you forgot to cancel. Maybe a payment you made days or weeks ago finally settled.

Whatever the reason, the result is the same: your hard-earned money is then going to the bank to pay these fees. And it is why we don’t charge them on Current. We simply decline the transaction if you don’t have enough money in your account or your fee-free overdraft protection will automatically kick in. 

The Solution: Fee-Free Overdraft with Current

At Current, we offer fee-free overdraft protection for qualifying members. You can begin becoming eligible for fee-free overdraft once you receive a qualifying direct deposit. Once you qualify, members can then spend up to their designated amount on either their debit or credit transactions without the transaction being declined. It’s a little extra cushion at those times you may need it most. 

There is no charge. There are no fees. It’s just the flexibility you need when life happens.

How It Works

Once you have qualified for fee-free overdraft and say your limit is $50, it means if you’re at a store and your total is $45 but you only have $30 in your account, your fee-free overdraft covers the rest so your transaction is approved without any fees being charged. The amount you spend on your fee-free overdraft is then deducted from your account balance when your next direct deposit hits.

• Debit or Credit Card Coverage: Fee-free overdraft protection is available for qualified members on either their debit or credit card transactions (using the Build Card). No matter how you choose to pay, know you have that extra cushion when you need it.
• Total Control: Members have the option to turn on or off their overdraft protection on either their debit or Build card at any time using a simple on-off toggle directly in the app. 
• Transparency: Members can see their eligible fee-free overdraft amount and remaining balance in the Current app at any time.

How do you qualify for fee-fee overdraft on Current

Step 1: Download the App and sign up for an account
Head to the App Store or Google Play Store and download the Current app. It is free to download and takes just two minutes to sign up for an account. 

Step 2: Switch your direct deposit to Current
For detailed instructions on how to switch, you can find all the details here.

Step 3: Maintain a qualified direct deposit over time
In order to qualify and enroll in fee-free overdraft, you must receive a minimum of $200 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements. You can find the full terms here.

Step 4: Spend knowing Current has got you covered!
Check your balance in the Current app or turn fee-free overdraft on or off at any time.