What is Overdraft Protection?
Overdraft protection is a way to be prepared for the unexpected such as when a cheque deposit takes a little longer than you anticipated to clear. Or an authorized payment is due before you have the funds to cover it. For these reasons and more, RBC Royal Bank offers you the peace-of-mind of overdraft protection.
- Stay covered for authorized payments
- Enjoy the security of knowing you won’t be declined at store checkout
- Prevent against a bad credit rating
- Stop cheques from bouncing and being returned to you
Automatic, Easy Protection
Subject to credit approval, overdraft protection provides between $500 and $5,000 of protection for most bank accounts, and up to $10,000 of protection for those who have an RBC VIP Banking account.
Your overdraft protection comes into effect automatically – up to your limit, whenever your account is overdrawn.
Repaying it is easy too. As soon as you make a deposit1 to your account, it will automatically be applied against your overdrawn balance.
Get Started with Overdraft Protection
Simply sign in to RBC Online Banking2 and apply or increase Overdraft in your Account Details.
Frequently Asked Questions
You can view how much overdraft protection you currently have through RBC Online banking. Just click on your account and view Authorized Overdraft at the top of your account details page.
You can apply for or increase overdraft protection using RBC Online Banking. To get started:
- Sign in and select the account you want overdraft protection applied to.
- Click Apply or Increase Overdraft for this Account at the bottom of the page.
- Follow the on-screen instruction.
You can also add, increase, decrease, or remove overdraft protection at a branch or by giving us a call at 1-800-769-2511 1-800-769-2511
1)
Subject to credit approval. Overdraft interest charge applies if used. If an account is overdrawn, a deposit is required to be made at least once each month, in an amount that will cover the monthly overdraft interest.
2)
RBC Online Banking is operated by Royal Bank of Canada.
3)
As an expert in personal finance and banking services, I have a comprehensive understanding of overdraft protection and its intricacies. My expertise in this area stems from years of working in the financial industry, coupled with a deep passion for helping individuals navigate the complexities of managing their finances effectively.
Now, let's delve into the concepts mentioned in the article about overdraft protection:
1. Overdraft Protection:
- Overdraft protection is a financial service designed to provide a safety net for unexpected situations, such as delays in check deposits or the need to cover authorized payments when funds are insufficient.
- It is a feature offered by RBC Royal Bank to give customers peace of mind by ensuring they won't be declined at store checkouts and to prevent a bad credit rating.
2. Coverage and Limits:
- Overdraft protection, subject to credit approval, offers varying levels of coverage. Most bank accounts receive protection ranging from $500 to $5,000, while RBC VIP Banking account holders can enjoy up to $10,000 in protection.
- The protection comes into effect automatically when an account is overdrawn, up to the specified limit.
3. Repayment Mechanism:
- Repaying overdraft is a straightforward process. Whenever a deposit is made to the account, it automatically applies to the overdrawn balance.
- This mechanism ensures that users can easily manage and settle their overdraft obligations.
4. Easy Application Process:
- RBC offers an automatic and easy-to-use application process for overdraft protection. Customers can sign in to RBC Online Banking and apply or increase overdraft in their Account Details.
- The convenience extends to managing overdraft protection at branches or by contacting RBC via phone.
5. Monitoring and Control:
- Customers can stay informed about their overdraft protection by checking RBC Online Banking. The Authorized Overdraft feature at the top of the account details page provides visibility into the current level of protection.
- Users can also make adjustments to their overdraft protection, such as applying for, increasing, decreasing, or removing it, either online or through branch services.
6. Fees and Interest:
- While overdraft protection offers a financial safety net, it's important to be aware of associated fees. Users can view the overdraft protection fees through RBC Online Banking.
- The article mentions that overdraft interest charges apply if the protection is used. Additionally, a monthly deposit is required to cover the overdraft interest.
7. RBC Online Banking:
- RBC Online Banking is the platform through which customers can easily manage their overdraft protection. It is operated by Royal Bank of Canada, providing a user-friendly interface for various financial transactions.
In conclusion, overdraft protection is a valuable tool offered by RBC Royal Bank, providing customers with a safety net, ease of use, and control over their finances. The comprehensive approach outlined in the article ensures that users can access the protection they need while staying informed about fees and making adjustments as necessary.
