What are NSF fees, how much do banks charge, and how do they differ from overdraft fees? National data and tips for consumers.
NSF / Returned Item
$25.00median
$1.00 – $75.00·165 institutions
NSF Daily Fee Cap
$120.00median
$5.00 – $350.00·80 institutions
How 220 institutions price this fee. National median: $25.00
A non-sufficient funds (NSF) fee is charged when a transaction is declined because your account lacks the funds to cover it. Unlike overdraft fees, the bank does not cover the transaction. The check or payment bounces back to the payee. NSF fees are typically similar in amount to overdraft fees.
With an overdraft, the bank pays the transaction and charges you a fee. With NSF, the bank declines the transaction and still charges a fee. In both cases, the fee amount is often the same. Some institutions have merged these into a single fee structure or eliminated NSF fees while keeping overdraft fees.
Monitor your balance regularly through mobile banking. Set up automatic transfers from savings as a buffer. Time bill payments to align with paycheck deposits. Consider banks that offer real-time balance notifications before transactions are declined.