As we earn and spend through our living style, we usually maintain a balance between them to avoid any unrest in our financial life. However, sometimes we fall into a situation where we face a lack of financial support when it is needed immediately. Here the overdrawing from our accounts comes as a blessing for us. Suppose you are about to receive your salary the next day, but you need extra cash to buy something immediately. That is where financial institutions like NetSpend comes with helpful feature like overdraft protection. So why not activate it today to face the immediate situation. Yes, knowing the amount and limits of the amount you can overdraw to calculate your expenses with a balance is wise.

I don’t think the limits would be a problem when it comes to overdrawing. The federal regulations set the boundaries, so obeying them is essential. This article is to acknowledge you about how much you can overdraft from your NetSpend account. So, read further. 

How much will NetSpend allow to overdraft?

Before starting the NetSpend overdraft protection service, you should know some limitations. NetSpend gives customers a $10 buffer. It means overdraft protection applies when the balance goes below $10.01. NetSpend charges $15 per overdraft, with a maximum of three overdraft protection fees per calendar month. Let’s talk about the overdraft limit with NetSpend all-access. NetSpend doesn’t say anything about an overdraft limit with all access. It has been speculated that NetSpend won’t let you overdraw more than $200 at a time.

Technically, you don’t have to repay the money. Keep the amount you overdraft from your account, and NetSpend will take it out automatically. Please remember that if you don’t return the same amount within 24 hours, you’ll be charged $15 for that overdraft. Whatever the amount, it’s going to be $15.

There are other limits too. Whether you like paying the overdraft fee of $15 or not, you can’t get an overdraft over three times in 30 days. That’s why I advise you always to avoid overdrawing your NetSpend account, only do it in an emergency.

Eligibility for the NetSpend overdraft protection service

With a prepaid card and a vast network in the U.S., NetSpend offers its customers the convenient overdrawing feature. To maintain your overdraft protection eligibility, you need to meet the following criteria:

  • Deposit at least $200 every 30 days.
  • No negative balance in 30 days

Please note that this is one deposit of $200, not a summed amount of deposits. Additionally, the overdraft protection will be deactivated if you have a negative balance for 30 days. But don’t worry, the only overdraft service will be deactivated, not your NetSpend account. So you’ll be able to load money to fill your account. You have to start from scratch – contact NetSpend again to unfreeze your overdraft protection.

Can I overdraw my NetSpend account more than once? 

NetSpend lets your overdraft up to five times per month with your all-access debit card if you’ve enrolled in overdraft protection. Each time your account goes negative over -$10, you’ll be charged a $20 overdraft fee. In this case, if you overdraft your NetSpend all-access account 5 times, you’ll have to pay $100 to NetSpend.

With an overdraft facility, you can get money when you need it. The bank also fixes decent repayment terms so that you can repay your overdraft loan within time. However, you should know the overdraft facility benefits and disadvantages before applying for a limit.

In how many days should I need to pay NetSpend back?

With NetSpend, you have 30 days to pay back the overdraft if you enrolled in the overdraft protection. Therefore, you should ensure you don’t have a negative balance on your all-access debit card within 30 days. Then you can make another overdraft. If you don’t pay back NetSpend in 30 days, the overdraft protection service will stop & your NetSpend account usage might be limited without notice.

Can you overdraft if you don’t have any money in your account?

You can overdraft your NetSpend account if enrolled in NetSpend’s overdraft protection. You won’t be able to go over your authorized amount on your card if you haven’t signed up for NetSpend. These cards are prepaid debit cards.

Overdrafts are financial instruments that let you withdraw money from your bank account (savings or current), even if you have no balance. Like any credit facility, the NetSpend charges interest when you use an overdraft.

Does NetSpend guarantee overdraft protection?

According to NetSpend’s terms of service, NetSpend’s overdraft protection is entirely up to its policy. If a transaction exceeds the balance on the account, NetSpend has to approve it. Then you can overdraw the amount. And NetSpend can take any decision at any time. But, if a customer has gone through the necessary steps and made the required payments, they should get overdraft protection on their debit card.

Is it possible to lose overdraft protection?

If you don’t meet the terms, NetSpend gives you two different punishments. You’ll get a strike if your account balance falls below zero for 30 days. After three strikes, you’re out of luck and can’t use the overdraft protection on your NetSpend card anymore. You will be permanently disqualified from the overdraft protection on your NetSpend card.

It’s also possible to lose this privilege permanently by having a negative balance for 60 days. Once this has happened, there is no way to reapply for overdraft protection except to open a new account with a different email.

Now let’s talk about the temporary disqualification. If you don’t pay $200 a month will lose your overdraft protection. As a result, you will get immediately charged for overdrawing their account, and the transaction is unlikely to get approved by NetSpend.

Luckily this isn’t permanent, and customers can reapply for overdraft protection once they can afford to make the necessary payments.

What’s the maximum amount I can withdraw from NetSpend?

Before knowing the maximum overdraft amount, you should know the total amount you can withdraw from NetSpend. According to NetSpend policy, up to six ATM withdrawals are allowed per day, with a maximum of $940. ATM owners may impose stricter limits on their machines. You can withdraw up to $5,000 from a financial institution or NetSpend Reload Network location. The same limitation applies when you’re shopping.

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