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Worried About Overdraft Fees? We Got You Covered

March 22, 2019

An unexpected overdraft fee can really hurt. Especially when the next paycheck is days away, and people are charged a fee multiple times and often don't realize until it’s too late.

Many of us at Earnin have been there and understand how hard that can be. To help our community outsmart overdrafts, Earnin is proud to introduce Balance Shield Alerts.

By turning on Balance Shield Alerts, members will be informed via push notification when their bank balance falls below an amount they can specify, ranging from $0-$400. If their bank balance falls below $100, they can also enable Balance Shield Cashouts, which will preemptively cash out up to $100 of their earnings.

We're excited to help people avoid overdraft fees with our latest service.

Like the rest of our app, Balance Shield Alerts is free to our community.

Why Is Balance Shield Alerts Free?

The reality is that everyone struggles with their finances at some point in their life — it could be your next door neighbor, your boss, your pastor or even the person writing this. It could be anyone who needs their pay and is out of options.

And that's exactly why we do not charge a fee to use Balance Shield Alerts.

Of all the unfair things about the American financial system, overdrafts affect those of us struggling with our finances and can bury us in fees.” says Ram Palaniappan, CEO of Earnin. “With Balance Shield Alerts, our community members can take even more control of their finances and actively ward off unfair fees - for free.”

Balance Shield

What are Overdraft Fees?

One in five Americans pay at least one overdraft fee every year, according to research firm The Pew, and it’s usually lower-income and younger consumers who are hit the hardest by these penalties.

“Financial institutions typically charge an overdraft fee when a customer’s account lacks sufficient funds to cover a transaction, but the institution chooses to pay the transaction anyway. Overdraft fees are triggered by debit card point-of-sale (POS) transactions, ATM withdrawals, electronic bill payments, and paper checks,” the Center for Responsible Lending (CRL) explains on its website. “The bank typically charges a fee, averaging $35, for each individual overdraft transaction it pays. What's worse, these fees can quickly accumulate, resulting in hundreds of dollars in fees per year.”

An Earnin community member from Austin, Texas explained what it’s like to be hit with an unfair bank fee. He recalls an incident where an autopay for a $19 utility bill caused him to fork out an additional $38 in fees — money he did not have to begin with. Since then, he’s switched to different banks, but none have been any better. And now he’s reached the point where he’d rather not have a checking account at all.

Stories like this are common and reveal the absurdity of overdraft fees and the massive financial implications they have for people.

The numbers are staggering, too. Every year, banks rake in billions in overdraft fees. In 2018 alone, consumers paid a whopping $34.3 billion in overdraft fees  — the most they’ve paid since 2009, during the end of the Great Recession, according to a new report from research firm Moebs Services.

If you’re interested in signing up for Balance Shield Alerts, download the Earnin App.

DID YOU KNOW?
In 2000, the median overdraft was $18. In 2017, it was up to $30.
1 in 10 millennials pays nearly $400 in overdraft fees yearly, according to data from a Consumer Financial Protection Bureau report.


Disclaimer: Balance Shield Cash Out is subject to your available earnings and daily pay period max. Other restrictions and/or third party fees may apply. For more information visit earnin.com/TOS

1Disclaimer: Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

2Disclaimer: Balance Shield cash out is subject to your available earnings and daily pay period max. Other restrictions and/or third party fees may apply. For more information visit earnin.com/TOS.

3NO PURCHASE NECESSARY TO ENTER OR WIN. Must be 18 years of age or older and a legal resident of the U.S. or DC. Games begin each Sunday starting 12/6/20 at 9:01 p.m. ET and end the following Monday at 9:00 p.m. ET with the last Game ending 12/19/21. To download the App, view the Official Rules, odds disclosures, prize details, and alternate means of entry, visit https://www.earnin.com/wewin/. Void where prohibited. $10,000,000 grand prize payable over 29 years. Sponsor: Activehours, Inc. (d/b/a Earnin ®), 200 Portage Ave, Palo Alto, CA 94306.

4Disclaimer: Up to 2 days early is based on comparison with traditional banks. Exact timing is dependent on your employer's payroll policies. For more information on eligibility and requirements of Earnin Express, visit earnin.com/TOS.

5Source: Internal analysis conducted by Earnin on December 10, 2020.

1Restrictions on use of Services and/or third party fees may apply, see Earnin.com/ privacyandterms for details.

2Balance Shield cash out is subject to your available earnings and daily pay period max. Other restrictions and/or third party fees may apply. For more information visit Earnin.com/privacyandterms.

3Tip Yourself Account funds are held with Evolve Bank & Trust, Member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% APY and $0 monthly fee service. Other restrictions and/or third party fees may apply, see Earnin.com/privacyandterms for details.

1Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

2Restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

3Balance Shield cash out is subject to your available earnings and your daily pay period max. Other restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

4NO PURCHASE NECESSARY TO ENTER OR WIN. Must be 18 years of age or older and a legal resident of the U.S. or DC. Games begin each Sunday starting 12/6/20 at 9:01 p.m. ET and end the following Monday at 9:00 p.m. ET with the last Game ending 12/19/21. To download the App, view the Official Rules, odds disclosures, prize details, and alternate means of entry, visit WeWin Game & Sweepstakes Official Rules. Void where prohibited. $10,000,000 grand prize payable over 29 years. Sponsor: Activehours, Inc. (d/b/a EarninⓇ), 200 Portage Ave, Palo Alto, CA 94306.

5Tip Yourself Account funds are held with Evolve Bank & Trust, Member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service. Your Tip Yourself Account and any Tip Jars are not Savings Accounts. For more information/details visit earnin.com/tos.

6Up to two days early is based on comparison with traditional banks. Exact timing is dependent on your employer’s payroll policies. For more information on eligibility and requirements of Earnin Express, visit earnin.com/tos.

7Your Max on Earnin Express is up to 80% of your payroll or $1000, whichever is less. The 80% is dependent on you routing your full paycheck to Earnin Express. For more information on eligibility and requirements of Earnin Express, visit earnin.com/TOS.

8By using Cash Back Rewards (powered by Empyr) you allow participating merchants and/or card networks details of your transactions. For more information, see Earnin.com/tos.

9Learn how we collect and use your information by visiting our Privacy Policy.

1Disclaimer: Restrictions and/or third party fees may apply, see earnin.com/tos for more details. Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection.

2Disclaimer: Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see Earnin.com/TOS for details

3Disclaimer: Community Member must have had at least 1 successful debit with Earnin. Limit to 1 Max Boost per pay period. A boost will not adjust a Community member's daily max. Restrictions may apply, see earnin.com/tos for more details

*Disclaimer: Balance Shield cash out is subject toyour available earnings and daily pay period max.Other restrictions and/or thirdparty fees may apply. For more information visit earnin.com/TOS

1Restrictions may apply, see earnin.com/tos for more details. Tip Yourself Account funds are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service. Your Tip Yourself Account and any Tip Jars are not Savings Accounts. For more information/details visit earnin.com/tos

2Disclaimer: NO PURCHASE NECESSARY TO ENTER OR WIN. Must be 18 years of age or older and a legal resident of the U.S. or DC. Games begin each Sunday starting 12/6/20 at 9:01 p.m. ET and end the following Monday at 9:00 p.m. ET with the last Game ending 12/19/21. To download the App, view the Official Rules, odds disclosures, prize details, and alternate means of entry, visit https://www.earnin.com/wewin/game-rules/. Void where prohibited. $10,000,000 grand prize payable over 29 years. Sponsor: Activehours, Inc. (d/b/a Earnin), 200 Portage Ave, Palo Alto, CA 94306.

3Disclaimer: Restrictions Apply. See earnin.com/tos for more information

*Disclaimer: Up to 2 days early is based on comparison with traditional banks. Exact timing is dependent on your employer's payroll policies. For more information on eligibility and requirements of Earnin Express, visit earnin.com/TOS.

**Disclaimer: Restrictions and/or third party fees may apply, see earnin.com/tos for more details. Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection.

*(*) Internal analysis conducted by Earnin in January 2021, represents total users who Cashed Out at least once from January 1 to December 31, 2020.

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