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Will Negative Balances Impact Stimulus Checks? It Depends on the Bank

Their Finances Ravaged, Customers Fear Banks Will Withhold Stimulus Checks Banks have the power to decide whether to let overdrawn customers gain access to the stimulus money being deposited into their accounts, but they have taken different approaches. Morgan Banke was hoping her bank would waive her overdraft fees so she could tap her stimulus funds, but the bank’s officials said they would not.Credit.Narayan Mahon for The New York Times Published Dec. 31, 2020Updated Jan. 2, 2021 Since August, Morgan Banke has had just enough money in her bank account every month to pay either her rent or her car insurance. The unemployed mother of two has relied on her bank, the Dupaco Community Credit Union in Dubuque, Iowa, to cover the difference. But each time she makes that choice, the bank charges her $28 in overdraft fees. Her account is $780 in the red.

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