How to overdraw your Commonwealth Bank account – what to do?

Have you ever overdrawn your Commonwealth Bank account? I have many times.

And in this article, we will discuss How to Apply, ways to avoid overdrawing your bank account and how to get repaid if you do overdraw your account.

What are the consequences?

Overdrawn your account can cause a lot of problems. Fees and charges will be applied to your account, and you may even be charged interest on the amount you’ve overdrawn.

This can quickly add up, and make it difficult to get back on track. In extreme cases, your bank may even close your account.

You may also find that you’re unable to use other services such as EFTPOS or cheque cashing until the balance is back in credit.

Your credit rating might also suffer. Banks take into consideration how well customers manage their accounts when deciding whether they’ll offer them new loans or credit cards.

Late payments or bad debts on your record, then could limit future access to finance.

Who Can Apply for Overdraw

Have an account that is managed by a Relationship Manager
Have a Smart Access, Complete Access, or Everyday Offset;  
18 years of age or older.

What is an Overdrawn Fee?

If you don’t have enough money in your account to cover a transaction, you may be charged an Overdrawn Fee.

This is a fee charged by the bank for borrowing money from them to cover the shortfall. The amount of the fee will depend on the bank, but in Commbank it is $15.

Types of payment that allow on Commbank

When you make a payment using your Commbank card, you may be able to use one of the following types of payments:

  1. Direct Debits, such as bills and loan repayments
  2. Cheques
  3. Scheduled BPAY payments
  4. Spend using your linked CommBank card

How to Apply to overdraw your Commonwealth Bank account

If you have an Australian Commonwealth Bank account, you may be able to apply for an overdrawn. Here’s how to apply

Through Mobile App

Step 1: Login to Commbank App
Step 2: Go to the Accounts tab
Step 3: Select your account,
Step 4: Choose on ‘Manage’ Option
Step 5: Click ‘Overdraw preferences’,
Step 6: Tap to Turn it on.

Now you have Overdrawn your commbank Account

Through Net Banking

Step 1: Log on to Net Bank and select the account you want for

Step 2: Click on the ‘Accounts’ link at the top of the page

Step 3: Click On the Manage Account Option

Step 4: There you will see the Overdraw preference option.

By Calling Customer care

Step 1: Call Commonwealth Bank on 022 6139 0100

Step 2: Your Next step will be to call Customer care and provide your personal details, including your name, date of birth and contact details.

Step 3: Ask for Enable Overdrawn.

Step 4: The representative will ask for more information about your application and then process your application by asking questions about your personal details and financial situation before verifying them with other sources such as your passport or driver’s licence.

Step 5: If everything is in order, you will receive an email confirmation that your application has been received by the Commonwealth Bank.

By Visiting Branch

The easiest and quickest way to apply overdraw is by visiting a Commonwealth Bank branch in person.

How to turn off the overdraw feature?

If you have an Australian Commonwealth Bank account, you may be wondering how to turn off the overdraw feature. Here’s how:

Step 1: Login to Commbank App

Step 2: Go to the Accounts tab

Step 3: Select your account,

Step 4: Choose on ‘Manage’ Option

Step 5: Click ‘Overdraw preferences’ & Turn off it

Or You can also call customer care to Turn off overdrawn.

How can I find out if my account is overdrawn?

If you think you may have overdrawn your account, the first thing you should do is check your balance online or via the mobile app.

If you see a negative balance, that means you have an outstanding debt with the bank. You will need to bring the account back into credit before conducting any transactions.

To avoid future incidents of overspending and overdrawn, you can set up alerts from within NetBank and/or use our Spend Safe feature which limits how much money you can spend in a day.

Why does this happen?

Overdraw occurs when you don’t have enough money in your account to cover a transaction, but the bank pays it anyway.

This can happen for a number of reasons: you may have forgotten to transfer money into your account, made a mistake when budgeting, or had an unexpected expense.

Whatever the reason, overdrawing is frustrating and can cause problems down the road if not addressed immediately.

How does this work?

The bank charges interest on any amount owed from the date of each transaction.

Interest rates are tiered depending on how much is owed and how long it has been outstanding, so it’s important to get a handle on your finances as soon as possible.

For example, if you owe $100 to the bank, they will charge $3 per day ($36/month) until you repay them back.

What steps can you take to avoid?

There are a few steps you can take to avoid accidentally overdrawing your account.

1) Keep track of your spending and make sure you have enough money in your account to cover all of your transactions.

2) Set up alerts with your bank so that you can be notified if your balance gets low.

3) Create a budget and stick to it so that you know how much money you have to work with each month.

4) Avoid impulse purchases or going on shopping sprees because they can really cause your account to get into trouble. If the problem does happen then you should contact the bank immediately for help.

5) Never make an ATM withdrawal when your balance is low.

6) Never pay bills from an account that has insufficient funds.

Final words

The above is a basic process on how to overdraw your Commonwealth Bank account, however, If you need additional information on this, do not hesitate to contact the Commonwealth Bank customer care or website.

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