February 7, 2011

{G.Y.M.U.} Protect Yo'Self!

If you've opened a bank account in the last 6 months, I am sure the Financial Representative asked you if you were interested in Overdraft Protection. Noticing your puzzled face, she went on to explain that this option would "cover" you if your available amount would not clear the cost of the debit purchase. In your interest to ensure that you wouldn't go into the negative, you quickly signed up for the feature not realizing that each "loan" came at the cost of at least $10.00. (and a max of $35.00) To add salt to an open wound, banks deduct purchases starting with the greatest amount to the least and some banks will charge you on each transaction until you have deposited fund to cover both the amount spent and the overdraft protection fee.


For those of you who haven't opened an account in the past 6 months, it would be wise of you to inquire about this feature. If your account doesn't accrue overdraft protection charges, be sure to ask about the other bank fees related to making purchases. For instance, what is the fee for using an ATM at another bank other than your home bank? With my account, this not only triggers a fee that I must accept on the screen, but my bank also charges me a fee as well. Is there a fee for writing a check? Unless you have a free checking account, writing checks comes at a minimal price similar to stopping a check once it's been exchanged.

Currently on my account, I do have overdraft protection! However, instead of using the bank’s money, my checking account is attached to my savings account. Although I haven’t used this feature since my college days, it is a much safer method of overdraft protection! Depending on your bank, there may be a charge for this service as well. If I can be frank, which I will, OPT out of the program! If you trully want to learn how to
keep track of your spending and budget your life, a simple decline at the register is the easiest way to learn this lesson. Personally, I'd rather this slap on the hand versus the $35.00 fee slapped on my account.

Bank Comparisons: Overdraft Protection

2 comments:

  1. this is a good tip for those just starting out. i love my overdraft proctection and it deducts from my 2nd savings account!
    Come check out my give-away!

    xoxo Monroe

    Fashion Steele NYC

    ReplyDelete
  2. I had the one that covers your purchase then charges you $35 for covering it.. well long story short They charged me $500 in $35 fees -__- .. so I learned that lesson last year! but great article better to learn it the easy way.. Oh and I only had to pay $175 because they knew they were wrong!

    ReplyDelete

I sincerely appreciate the comments! From one selfless person to another, thank you!