Uh oh, we spent too much money at the mall again. 😵💫🛍️ Just when we recovered from back to school sales, we fell headfirst into those pre-Black Friday doorbusters. The only thing busted is our wallet. 👛🪰
The worst part about overspending? Getting hit with an overdraft fee from your bank. 💸 But with a little clever thinking, you can outsmart those fees and keep more of your hard earned money.
Here’s Five Fast Facts on how to avoid bank overdraft fees:
- 📈 The Fee’s Knees - In the USA, overdraft fees are big business. In 2023, banks collected over $5.8 billion in overdraft and non-sufficient funds (NSF) fees. In September, the average overdraft fee at America’s 10 largest retail banks was $32.75.
- ✍️ Check It Out - Still writing paper checks? If someone waits a long time before cashing it in, you might forget all about it and not have enough funds in your account. Consider signing up for a checkless bank account instead. Bonus: if you need to send a paper check, you can do so through your bank’s online bill pay service. Another bonus: they’ll withdraw the money from your account right then and there.
- 🛑 Under the Covers - Your bank’s overdraft coverage may seem like a good idea, but you’ll still get hit with fees if your backup accounts don’t have enough funds. If you decline the coverage, debit card transactions will be denied instead. Embarrassing, but at least you won’t lose any extra money in overdraft charges.
- 📲 Red Alert - Take advantage of your bank’s account alerts. Through your online account, you can set up custom alerts to notify you any time your account dips below a certain number. For example, you’ll get a notification on your phone any time your checking account goes under $150.
- 🏃 Catch Me If You Can - If you catch an overdraft in time, you might be able to transfer money to cover the charge before you get hit with a fee. Some banks offer a 24-hour grace period, or won’t charge you the fee until the end of the day. Check your bank account details to know for sure!
🔥Bottom line: With the holiday season right around the corner, make sure you have enough cash in your account before playing Santa! Looking for the perfect place to stash your emergency fund? There are better places than underneath your mattress! We share a bunch of good ideas in this article.
Are you a pro at dodging overdraft fees?
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