Ways to Avoid Abusive Overdraft Charges by Banks
So, it’s come to this: you are finally fed up with all of those overdraft charges you have been paying to your bank. It can take a while to get to this point. You see, most of us can ignore a $35 overdraft charge here, a $20 overdraft charge there. But, if you take the time to review a few weeks’ or months’ worth of bank statements and use your trusty pocket calculator, you will see that these charges add up quickly to $100s. In fact, a $35 a pop, you could easily run up over $100 in overdraft charges in a SINGLE DAY, just by having buying three $5 items at different stores once your account has gone to a negative balance. That’s $105 in fees to pay for $15 in overdrafts. Ouch!!!
If you are fed up, then check out these 7 ways to avoid abusive overdraft charges by banks:
1. Set up an overdraft savings account with your bank that is linked to your checking account. Whenever you have an overdraft, your bank will transfer money from your savings into your checking.
2. Switch to a bank that does not charge overdraft fees - even when you have an overdraft.
3. Do your best to keep a minimum of $25 or $50 in your account at all times. Treat that amount as “$0″ and resolve never to let your balance go below that number.
4. Check your balance twice per day – once in the morning and once in the evening – to help make sure you have not overdrawn your account.
5. If you own a smart phone like an iPhone or a Droid, buy an app that allows you to check your balance from wherever you are.
6. Carry a mini tablet in your wallet or purse and track your balance meticulously.
7. Find a bank that does not charge overdraft fees – even when you have an overdraft (this one is worth mentioning twice).
By becoming a savvy bank customer and making a few small changes to your banking habits (or switching to a better bank), you can save yourself $100s per year in overdraft fees.
For more on this topic, also see: http://www.squidoo.com/how-to-avoid-abusive-overdraft-charges-by-banks.
