Understanding Overdrafts and Fees

Overdrafts can be a costly way to find out that your bank account doesn't have the balance you thought it did. Educating yourself on what an overdraft is, how your balance is calculated, and how to avoid overdrafts and associated fees can help you feel good about your financial health.  


What is an overdraft?

When you do not have enough money in your account under your available balance to cover a transaction, Synovus covers the amount for you. An overdraft can occur when one or more debit items (for example check, ACH, ATM, or your debit card) attempts to clear your account in an amount that exceeds the available balance of your deposit account.


How is my available balance calculated?

Your available balance is calculated by taking the prior business day’s ledger balance and subtracting the funds that are being held to cover pending transactions.

A pending transaction is a transaction the bank is aware of but has not yet cleared. It might include must-pay debit card transactions or deposits made to your account for which funds have not yet been collected.

The ledger balance is the balance from the close of the previous business day and includes all transactions that cleared the account that day. Neither your ledger balance nor your available balance reflects any transactions that the bank does not know about, such as checks written but not yet received by the bank.


What are some tips to avoid overdrafts?

Good account management is the best way to avoid unexpected overdrafts. Use My Synovus digital banking to keep track of your spending on the go. You can check your balance, set up low balance alerts, or easily transfer funds between your accounts.

Linking another account like a savings account or a line of credit with Overdraft Protection could be a less expensive option to cover unexpected overdrafts. A single funds transfer will result in one funds transfer fee and may provide the overdraft coverage you need, as opposed to multiple overdraft fees per transaction.

Even if you have Overdraft Protection, Overdraft Privilege (Standard or Extended Coverage) provides secondary support if your other funding source is exhausted. You can use both types of overdraft coverage on your account.

Synovus Budget Checking is an alternative account that does not offer overdraft coverage, but limits transactions that could overdraw your account based on your available balance (returns/declines ACH and some debit card transactions when funds are not available). This account features a low monthly fee of $5 with a minimum deposit of $25 to open, and waived NSF and overdraft fees.

Based on the type of account you have, you might have your fees waived. If you would like to make changes to your account, update your overdraft coverage, or have any additional questions, please visit a local branch or call 1-888-SYNOVUS.