Overdraft Protection

Life gets busy, and there might be times when there’s not enough money in your chequing account to cover your bills. With TD Overdraft Protection, you’ll have the confidence of knowing you can avoid the embarrassment and extra fees that come with a returned cheque. When Overdraft Protection is applied to your account, shortfalls in your account will be covered up to a pre-set limit.

There are two kinds of Overdraft Protection

To make sure any shortfalls in your chequing account are covered, you can pay a flat monthly fee, or you can choose to pay a single fee each time your account is overdrawn. Either way, Overdraft Protection will probably cost you less than the fees charged for Non-Sufficient Funds (NSF).

  • Monthly Plan Overdraft Protection

    • Fee: $5 per month1
    • How it works: Pay one monthly fee regardless of how often you’re overdrawn (plus 21% interest per year on the overdrawn amount)
    • Fees vary for different TD Chequing Accounts
  • Pay-As-You-Go Overdraft Protection

    • Fee: $5 per use
    • How it works: Pay only when you use the service. The most you’ll pay in one day is $5 (plus 21% interest per year on the overdrawn amount)
    • Not available in Quebec

Why is Overdraft Protection a good idea?

A rejected payment can lead to late fees on your bills, as well as bank charges for non-sufficient funds (NSF). Overdraft Protection helps prevent this. When funds are low in your chequing account, Overdraft Protection covers your payments up to your approved limit. To repay the covered amount, simply make a deposit into your chequing account.

What else to know about Overdraft Protection

  1. You must apply for this service, and it’s subject to approved limits, interest rates and repayment terms

  2. An interest rate of 21% per year will be charged on amounts in overdraft

  3. Overdrawn balances must be repaid within 89 days

  4. Overdraft interest rates are subject to change

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