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Save Yourself With Expensive Overdraft Fees

Reading Time: 3 minutes


Do you always find yourself withdrawing more than you have in the bank?

Finally, you can avoid an overdraft with the help of Dave. No longer will you have to worry about paying hefty overdraft fees.

Dave provides its users with a $75 cash advance that can be used in place of that overdraft. It works by connecting your bank account then adding your pay stubs into the app.

Let’s find out more!

How ‘Dave’ works

This is a pretty simple to use app and is available on both Apple Store and Google Play Store.

Having downloaded Dave, the next step is to add your banking details. The long-term, as well as immediate features of the app, make it a useful tool to have with you at all times.

Dave will send you a warning message when you are close to withdrawing more than your bank balance.

And there’s more…

The inbuilt algorithm analyses spending habits including your transaction history. (You will also get to see the most frequent expenses)

With the information, Dave can predict when next your bank account will be nearly drained and close to an overdraft.

By having this information beforehand, you have ample time to take measures and prevent the overdraft.

And the great thing is…

You can borrow up to $75 from Dave and pay it back with 0% interest.

Speaking of Borrowing..

How to Get a Loan

Users can get three different Loans through Dave — $25, $50 and $75. But what sets the app apart from its competitors in the market is how simple it is to repay.

You can pay back the loan once you receive the paycheck (which can automatically be done via features on the app). However, there is really no expiration date for the loan and users can pay anytime at their convenience.

The costs

You are probably wondering about the Dave costs by now (and there are some).

They are as follows:

  • Subscription fee at $1 per month
  • Transaction fees
  • Voluntary tips

The transaction fees are charged during the loan repayment and the voluntary tips are just that – voluntary.

Dave claims to plant a tree with the tips. By partnering with Trees for the Future, Dave says that a tree will be planted for each percentage donation by its users. (2% donation will equal 2 trees).

Loan Approval process

The loan approval by Dave takes some time.

Having downloaded the app, you will then be required to upload your bank account details and documentation.

The loan application will take a few days which means Dave may not be the go-to solution for a quick and immediate loan.

There are situations where users simply cannot avoid going negative on their bank.

Dave will help here as well through its payday loan feature. Users can borrow as much as $250 to see them through to their next paycheck. (The interest is still 0%).

Where the Dave idea came from

Dave’s CEO and Co-founder, Jason Wilk recalls that when he was in college, he often found himself with an overdraft. In fact, all of Dave’s founders had this problem.

And let’s consider some facts.

ATM and Overdraft fees cost bank customers billions of cash each year. Money that would have been spent on something else.

Jason Wilk discovered that customers overdraft by an average of $25. While this might seem small, the associated costs are not.

By providing users with loans at 0% interest, Dave hopes to prevent such pitfalls and save people from having to spend money on unnecessary overdraft fees.

Overdraft costs in the US continue to rise steadily each year. Dave co-founders had to perform market research to find a way around the problem and discovered that there were really two main reasons behind bank overdrafts.

First, people are not always aware and in tune with all their upcoming expenses so they withdraw in excess of their bank balance, and second, people seem run out of cash for a short period before their paycheck.

The founders also found that when people were faced with such a situation and still wanted to avoid taking an overdraft, they often asked for a short-term loan from friends and family. This is why they came up with a human name for the app—Dave.

User Privacy

The Dave app can share user information with third parties for marketing purposes which is something most people may not appreciate.

And considering how sensitive the banking details are, this worry is well founded.


You might be wondering why Dave hasn’t gone bankrupt by now.

Well, as odd as it may sound, Dave founders hoped that the app’s friendly design and approach cushions it from users talking advantage by borrowing and not paying back the money. This seems to work just fine so far!


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