You can be charged for just about anything – including not having any money!
“Overdraft” fees are charged when you try to use a debit card but don’t have enough money in your account. These can add up – banks made $31 BILLION on overdraft fees in 2020! But here are some ways to avoid them.
#1: Overdraft Protection
This protection service prevents your account from going negative. It makes it so nothing, including debit card transactions or checks, can make your balance fall below zero – EXCEPT for pre-authorized transactions. Many banks offer this service.
#2: Automatic Transfers
This makes it so if your bank account doesn’t have enough funds to cover a transaction, they’ll transfer money from a linked account to your checking account. This is usually free, but some banks might charge per transfer. Automatic transfers can be set up inside of a branch, on the phone or even online!
When your balance goes below a certain dollar amount, you can set up notifications to alert you with a text or e-mail before it goes negative! Then you can make sure to add some money to the account.
Stay in control of your finances by making sure you aren’t being charged unnecessary fees. It’s your money – keep it!