How to Use Fee-Free Overdraft on Current

Overdraft services provide a temporary financial safety net, allowing individuals to cover transactions when their account balance falls below zero. These features can be helpful for unexpected expenses or bridge a gap between incoming funds and outgoing payments. Current offers its members a specific feature for this purpose, known as Overdrive, which helps users manage spending without traditional overdraft fees.

Understanding Current’s Overdrive Feature

Current’s Overdrive feature is a fee-free overdraft service designed to cover debit card purchases that exceed a user’s available balance. This functionality can prevent transactions from being declined when funds are momentarily insufficient. It operates automatically once activated, covering eligible transactions up to a predetermined limit.

The initial limit for Overdrive starts at $25, but it can increase up to $200 based on account activity and history. This service applies to in-store and online purchases made with the Current debit card. It does not extend to ATM withdrawals, Automated Clearing House (ACH) transfers, or peer-to-peer (P2P) payments.

Qualifying for and Activating Overdrive

To become eligible for Current’s Overdrive feature, members must meet specific criteria primarily related to their direct deposit activity. An active Current account in good standing is required, and the account holder must be at least 18 years of age. A key qualification involves receiving at least $500 in qualified direct deposits into the Current account within each 30-day period. Qualified direct deposits typically include automated clearing house (ACH) transfers from an employer, payroll provider, or government agencies like Social Security.

Once an account meets the eligibility requirements, Current will notify the member that they are eligible for Overdrive. To activate the feature, users must opt-in through the Current mobile application. This process generally involves navigating to the “Account” or “You” section of the app and selecting the “Overdraft Protection” or “Overdrive” option. After reviewing the terms and confirming, the feature becomes enabled, and the user’s specific Overdrive limit will be displayed within the app.

Using Overdrive and Managing Repayment

Once Overdrive is active, it automatically covers eligible debit card purchases that exceed the account’s available balance, up to the member’s approved limit. For example, if an account has $0 and a $25 debit card purchase is made, Overdrive will cover the transaction. Current sends push notifications when Overdrive covers a purchase, indicating the amount used and the remaining overdraft limit.

The account balance will then reflect a negative amount equal to the overdraft used. Repayment occurs automatically from the next incoming direct deposit or other funds added to the Current account. Members are expected to repay negative balances promptly, typically within 60 days of the first transaction that caused the overdraft.