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Bank Overdraft Fees Are Ridiculous

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Imagine having caused your account to overdraft by only 11 cents and yet you find out later that day that your bank has charged you a $34 fee to defray the charge. Ouch! And yet, this type of thing literally happens every day to millions of people. For some folks, $34 is not much money, but for the majority of us, we would rather not have to pay it as a fee to our bank, thank you very much. Okay, if you would like even more news pertaining to this topic, click this link; cash today loans personal.


Overdraft fees have gone well beyond being just a penalty or slap on the wrist that a bank customer gets charged for not managing her checking account carefully enough. Rather, they became a big source of income for banks in and of themselves-to the tune of over $25 billion per year across all banks in the U.S. alone.


Many bank customers who try faithfully to manage their checking accounts each month do a fairly good job. And yet, there can be that one charge that puts you over the edge by a few dollars-and then come the fees.


The bad news about overdraft fees is that they're established in order to be 'trigger happy': to make it as easy as possible in order to you to get charged a fee. For example, most banks with overdraft protection programs will allow a debit charge to go through, even though the account is overdrawn. This causes a fee to be attributed to the account.


Another bad thing about overdraft programs is because they have traditionally been opt-out. This means that when you sign up for another checking account, you're automatically enrolled. Many people are not aware of this, so they figure that if they attempt to put through a charge that will overdraw their account, the charge will just get rejected. That is why it is a rude awakening when they check their bank statement and see a charge there.


Although you really do not have much support if your card is lost or stolen, but at least your losses are limited to the level of the missing money. With having a debit card you'll put your entire bank balance this is in your bank account at a high risk. If you connect your checking account to your savings account in a attempt to avoid overdraft charges, you put the balance in both accounts at risk, as you'll face severe overdraft charges.


There is some good news in this respect, however. For example, in response to government and consumer pressure, many large banks are changing their overdraft policies to make them more customer-friendly.


For example, some banks are now saying they'll not charge a fee unless the account is overdrawn by at least $5 (rather than a few cents, as before). Other banks are limiting the maximum amount of charges you can incur in a given day. And, some banks are also making their protection programs 'opt in,' which meant that customers will receive a choice about whether they wish to join when they sign up for a new account.


You can find no-overdraft-fee banks online. Make sure to contact at least three-5 of these banks before you make a decision regarding a particular bank: while they all offer no-overdraft-fee checking, other details about each bank will of course vary. Choose the one that feels right to you.


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Arielle Tocco

Saved by Arielle Tocco

on Oct 19, 14