Are Bank Overdraft Fees Getting Worse?

Many of us have noticed the trend of bankyou don't keep record, then you have to expect at
overdraft fees steadily increasing over the past fewsome point, you'll be paying a fee.
years. A bounced check used to cost around $10 butBesides the increase in the amount, if you feel that
now is more commonly around $35 per transaction.you are paying more fees now than you were in
There are overdraft protection plans which only helpyears past, you may be right. Most banks now
us build up more and more debt. So what can beengage in the practice of "courtesy overdraft". Even
done? Many think that the banks should notifyif you didn't sign up for any overdraft protection,
consumers of a transaction that is about to cause anbanks may still approve transactions over the amount
overdraft before the transaction can be completed.that you have in your account and then charge you
Banks say that it is just too technically difficult.an exorbitant fee for the convenience. Banks say
Banks are viewed as institutions provided to us solelythat it actually costs you the same as an old bounced
to protect our money. In fact, they are a businesscheck plus the merchant's fee, minus the hassle for
and aim to turn a profit at some point. Banks areyou and the business. What may not sit right is that
now being accused of processing large transactionscourtesy overdraft is also available on debit or credit
first so that all those little ones trickling in can eachpurchases as well as ATM transactions, where the
incur its own overdraft fee. It has become easierbank knows that you don't have enough money to
than ever for consumers to rack up hefty fees nowcover it. Again, the bank needs to make money to
that we are using not only checks, but we're alsocontinue to provide all of its services and be
taking ATM withdrawals, using debit cards, makingprofitable.
credit purchases and other electronic payments suchTo eliminate future charges, we're just going to have
as bills and automatic withdrawals.to learn to keep track of our many transactions. Ask
Banks still hold firm that only the consumer canyour bank about other options that may be cheaper
actually know what checks they have outstandingthan paying overdraft charges. Most will waive fees
and what transactions they've made that haven'tfor first-time offenders and offer decent overdraft
cleared yet. Maybe they're right. We have to takeprotection plans or a transfer from savings in the
some responsibility for knowing what funds we haveevent of a miscalculation on your part. If you know
available in our own accounts. Modern conveniencesyou're going to need to overdraw your account and
such as check cards and ATM machines need to bedon't want the fee, sometimes a payday loan is a
taken as seriously as writing a check used to be. Iffaster cheaper way to go.