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