An overdraft can happen for all kinds of reasons. Maybe a check you wrote long ago recently got cashed, or you forgot the electric bill was put on autopay. With that mistake usually comes a bank fee, making a bad situation worse.
Dave wants to make sure this never happens to you. After you sign up for the $1-per-month membership, link your checking accounts, and enter your recurring bills, Dave will alert you to any potential overdrafts that may be coming.
To do so, Dave looks at your recurring expenses—like that electric bill—and the days of the month you get paid. You’ll usually receive a notification at least a few days in advance to give you time to adjust your spending or deposit new funds. Dave is also pretty proactive—the app is happy to lend up to $100 to cover overdraft fees so you don’t dip into the red. You decide how much to borrow interest-free, and Dave automatically withdraws that amount to pay itself back when you receive your next paycheck.
When Dave does spot you some money, you have the option of leaving a small tip to say thanks: 5, 10, or 15 percent of what you borrowed. When you do, Dave makes a donation to Trees for the Future to plant a tree—one easy way to pay it forward.