There may be times when you try to make a transaction but don’t have enough money in your account. If the transaction is made, this may trigger an account overdrawn fee, so it’s important to know what this is and how to minimise the chance of incurring the fee.
Preventing your account from overdrawing
If your account becomes overdrawn, the balance would be negative. It’s important to top up your balance as soon as possible so it would be returning the balance to credit plus putting funds to cover future payments to avoid overdrawing it further. You may incur account overdrawn fees and debit interest may be charged on the negative balance.
To avoid being charged a fee, it’s good to:
- Check your account regularly to ensure it has enough cleared funds to cover your payments/transactions.
- Allow enough time for deposits to be processed before you draw on the funds (some can take up to 5 business days).
- Keep track of your regular payments (including direct debits and recurring card payments) and reschedule them if you need to.
|Fee type and account||Amount
||How is it charged|
|Account overdrawn fee|
This fee will be applied once on any given day on which you overdraw or further overdraw your account if the balance is not returned to a positive balance by the end of the day or to a balance within the agreed overdraft limit (as applicable).
|$15 (max per day)||
|Fee type and account||Amount
||Tips to avoid this fee|
|Outward dishonour or periodical payment not made fees
When your cheque, direct debit or periodical payment is dishonoured due to not having enough money in your account.
Applies to home, personal and business loans.
|Inward Dishonour Fee
When a cheque you deposit is dishonoured or a direct debit to your account is declined. Applies to personal and flexi loans.
Note: Business accounts and loans includes business transaction accounts, business loans and business overdrafts.
Some example scenarios
|Mark pays his $50 phone bill by direct debit.|
|But Mark doesn’t realise his account balance is getting low – only $10 – when the phone bill is processed. This means his account is overdrawn by $40 and he incurs a $15 account overdrawn fee. If he had opted in to receive regular balance alerts, he could have received a notification on his phone and known to top up his account before it was overdrawn.
|Jose pays an unexpected bill to fix his car after it breaks down.|
|But Jose forgets to check his balance after the transaction is processed, so he doesn’t have enough funds to cover the rent which is due in two days and paid by direct debit. His account becomes overdrawn by $200 and he incurs a $15 account overdrawn fee. If Jose had Quick Balance on his Westpac Mobile Banking app, he might have found it easier to monitor his account’s balance and keep it topped up.
|Sandra's monthly health insurance premium is dishonoured.|
|Unlike Mark and Jose, Sandra has changed her account Overdraw Preference to ‘disable’, to prevent her account from overdrawing* when it has insufficient funds. One day, the $120 direct debit is processed when she only has $60 in her account, so the transaction is dishonoured. Because of this, she avoids paying $15 account overdrawn fee for overdrawing her account. However, she will need to contact her insurer to make up any missed payment that may have occurred.
*Note: by direct debit, periodical payment, cheque withdrawal or scheduled payments.
Tools to help you manage your spend
Keep on top of your most recent activity by setting up Quick Balance (only available on the Westpac App for mobile). No need to sign in to Mobile Banking; in a flash, you can see your account balance and also your 10 most recent transactions from the past 14 days.
Regular payments list
Review your periodical payments or direct debits easily by asking us for a list of the regular payments and transactions on your account. You can request for a regular payments list in branch, with Online or Mobile Banking, or by giving us a call.
The Overdraw Preference feature gives you the option whether we allow a direct debit, periodical payment, cheque withdrawal or scheduled payments to overdraw your account (if eligible). Refer to Overdrawing your account for more information.
Did you know?
If you receive a protected payment such as income support or pension while your account is overdrawn, you may still be able to withdraw up to 90% of your fortnightly payment. Learn more.