How to Enable Overdraft on the Current App
Learn to enable and utilize Current's overdraft feature. Understand its function and how it supports your spending without fees.
Managing personal finances often involves unexpected expenses that can lead to account balances falling below zero. Financial platforms offer services to bridge these temporary gaps, allowing transactions to proceed even when funds are insufficient. These features provide a financial cushion, helping individuals avoid declined payments and the inconveniences that arise. Modern digital banking applications integrate these protections directly into their platforms.
Understanding Current’s Overdrive Feature
Current, a financial technology company, provides a feature named Overdrive that addresses situations where an account balance might drop below zero. This feature covers small overdrafts on debit card purchases, functioning as a financial safety net. Overdrive is fee-free, meaning Current does not impose additional charges for its use. It helps account holders avoid transaction declines for everyday debit card use, offering a seamless experience.
Eligibility and Requirements for Overdrive
To qualify for Current’s Overdrive feature, account holders must meet specific criteria. Requirements include maintaining an active Current account in good standing and being at least 18 years of age. Eligibility also involves consistent direct deposits into the Current account. Individuals must receive a minimum of $500 in qualified direct deposits within each 30-day period. These are typically Automated Clearing House (ACH) direct deposits from sources such as an employer, payroll provider, or government payroll.
Non-qualifying deposits, such as bank ACH transfers, unemployment insurance payments, peer-to-peer transfers, mobile check deposits, and cash deposits, do not count towards the eligibility threshold. Current periodically reviews accounts to determine eligibility, and eligible members are notified directly through the app when they meet the criteria.
Enabling Overdrive
Once eligibility requirements are met, enabling the Overdrive feature within the Current app is straightforward. Current notifies users when their account qualifies for this fee-free overdraft protection.
To activate Overdrive, access the Current mobile application and navigate to settings. Within the app, users find the option to enable Overdrive by tapping on the “You” section. From there, locate “Overdraft Protection” or “fee-free overdraft” to proceed. The activation process usually involves an explicit opt-in step, confirming consent. After enabling, the Overdrive limit and remaining balance are displayed directly in the Current app.
How Overdrive Works
After enabling Overdrive, the feature provides coverage for eligible transactions. Overdrive specifically covers in-store or online purchases made with a Current debit card. The coverage limit typically starts at $25 and can increase up to $200, with the exact limit determined by Current based on account activity and direct deposit history.
Current charges no overdraft fees for its use. When a transaction causes the account balance to go negative, Overdrive covers the difference up to the allocated limit. The negative balance is automatically repaid from the next direct deposit received into the account. Overdrive does not cover all transaction types; it excludes ATM withdrawals, other cash withdrawals, ACH transfers, peer-to-peer service payments (such as PayPal or Venmo), and checks.