Key Bank Overdraft Fees and How to Avoid Them

Key Bank overdraft fees can be a significant burden on your finances, with some fees reaching as high as $36 per overdraft.

To put that into perspective, if you're consistently overdrafting by just $1 per day, that's $365 in fees per year.

Key Bank's overdraft fees are triggered when your account balance falls below $0, and the bank will charge you a fee for each overdraft transaction.

You can avoid these fees by keeping a close eye on your account balance and making sure you have enough funds to cover transactions.

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KeyBank NSF fees are $33 per transaction, which is charged when you have non-sufficient funds for a transaction. This fee is for the overdraft service.

Financial institutions typically charge $35 for overdrafts, but KeyBank's overdraft fee is $20 per transaction, which is below average. According to WalletHub's latest Banking Landscape Report, the average overdraft fee for checking accounts in the United States is $27.79.

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You can set up overdraft protection to prevent fees. KeyBank offers a service called overdraft protection that allows you to link a KeyBank savings account, credit card, line of credit or second checking account to your main checking account.

Excessive overdrafts could have other consequences. If you have too many overdrafts, KeyBank may report it to ChexSystems, which is like the credit reporting agencies, but for bank accounts.

Here are some key things to know about KeyBank overdraft fees:

KeyBank charges a $33 overdraft fee per transaction, which can be a significant hit to your wallet.

You can take some steps to avoid overdraft fees and non-sufficient funds charges before they show up on your account.

If you do overdraft your account, the fee may be increased to $38.50 if another overdraft charge comes within 10 months.

However, if your account doesn't have another overdraft charge for 10+ months and then experiences an overdraft, the fee will reset to $33 per transaction.

To avoid these fees altogether, consider enrolling in a no-fee overdraft app like Chime's SpotMe service, which offers fee-free overdraft protection.

With SpotMe, you can avoid paying the usual overdraft fee of $98 on a $65 purchase, and instead, have the negative amount balanced out by your next deposit.

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KeyBank charges a $33 overdraft fee per transaction, which can increase to $38.50 if you have another overdraft charge within 10 months.

The good news is that KeyBank resets the overdraft fee back to $33 per transaction after 10 months of no overdraft charges.

If your account remains negative for 5 consecutive business days, you'll be charged a "Recurring Overdraft Service Charge" of $28.50.

KeyBank has a daily limit of 5 overdraft charges per account, with a maximum daily fee of $165. The monthly limit is 20 overdraft charges per account, with a maximum monthly fee of $660.

You can opt-in to KeyBank's overdraft services through their online banking system, mobile app, or by visiting a local branch. If you want to opt-out later, you can do so through any of these methods.

Here's a summary of KeyBank's overdraft limits:

You can request a fee waiver at KeyBank by contacting their 24/7 customer service at 1-800-539-2966 or visiting your local KeyBranch location.

To increase your chances of having an overdraft fee waived, you should have a strong account history with few overdrafts or NSF charges.

If you're a longtime customer, you may be more likely to have an overdraft fee waived due to your account history.

The bank may consider waiving a one-time overdraft fee for you, but it's less realistic to try to get multiple overdraft fees waived.

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Requesting a fee waiver can be a bit intimidating, but it's worth a shot if you're a long-time customer or have a solid account history. If you're a KeyBank customer, you might be able to get an overdraft fee waived.

You can try calling KeyBank's 24/7 customer service at 1-800-539-2966 or visiting your local KeyBranch location to speak with an advisor. They may be more willing to waive the fee if you have a strong account history, with few overdrafts or NSF charges.

It's less realistic to try to get multiple overdraft fees waived, so it's best to focus on one-time requests. If you're a longtime patron, you might be able to get a one-time overdraft fee waived by explaining your situation to the customer service representative.

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Now that you've learned about overdraft fees and how to avoid them, it's time to take action. Set up account alerts to notify you when your balance is low.

To avoid accidental overdrafts, consider linking a savings account or credit card to your checking account. This way, when you don't notice your low balance until it's too late, you can cover immediate charges without incurring overdraft fees.

If you're looking for no-fee options, check out SpotMe and PockBox. These services can help you avoid overdraft fees and cover cash shortages.

Here are some key things to keep in mind about SpotMe:

Remember, even with SpotMe, there may be out-of-network or third-party fees associated with ATM transactions.

Financial institutions typically charge $35 when a customer overdraws from their account, according to the CFPB.

KeyBank charges a $33 overdraft fee per transaction, but this fee can increase to $38.50 if you have another overdraft charge within 10 months.

Banks will still be able to charge higher fees as long as they comply with longstanding lending laws, including disclosing any applicable interest rate.

If you have an overdraft charge on your KeyBank account, you'll be charged $33 for the first two overdraft charges that occur on the account, and then $38.50 if you have another overdraft charge within 10 months.

The CFPB says the majority of consumers’ debit card overdrafts are for less than $26, and are repaid within three days.

If an account remains negative for 5 consecutive business days, a “Recurring Overdraft Service Charge” of $28.50 will be applied to the account at KeyBank.

This new rule is expected to generate $5 billion in annual overdraft fee savings for consumers, or about $225 per household that pays overdraft fees.

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