How to Avoid Being Charged Overdraft Fees
Select an overdraft option., Ask to have an overdraft charge eliminated., Negotiate if you have a series of overdraft charges.
Step-by-Step Guide
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Step 1: Select an overdraft option.
Your bank may offer a service that limits or completely eliminates overdraft fees.
Typically you have three such options:
Overdraft coverage: a limited coverage in which the bank will honor a check that pulls your balance below zero, anticipating that you will reimburse them in the immediate future.
Overdraft protection: the bank will automatically withdraw funds from another of your accounts or grant you a line of credit in the event of an overdraft.
A line of credit typically involves interest payments and transaction fees.
Complete opt-out: you're under no obligation to have any overdraft protection at all.
If you opt out, one or more of your checks could be rejected.
In such a case you might be charged an overdraft fee. -
Step 2: Ask to have an overdraft charge eliminated.
If you very rarely overdraw an account you've maintained for a long time, approach a customer-service representative about having the overdraft fee removed.
Many banks will waive such a fee for normally reliable customers. , Your bank may consider waiving a series of charges stemming from the same overdraft if you're willing to set up a savings account for automatic overdraft protection.
As an added incentive you could offer to accept other services with the bank in exchange for eliminating the fees. -
Step 3: Negotiate if you have a series of overdraft charges.
Detailed Guide
Your bank may offer a service that limits or completely eliminates overdraft fees.
Typically you have three such options:
Overdraft coverage: a limited coverage in which the bank will honor a check that pulls your balance below zero, anticipating that you will reimburse them in the immediate future.
Overdraft protection: the bank will automatically withdraw funds from another of your accounts or grant you a line of credit in the event of an overdraft.
A line of credit typically involves interest payments and transaction fees.
Complete opt-out: you're under no obligation to have any overdraft protection at all.
If you opt out, one or more of your checks could be rejected.
In such a case you might be charged an overdraft fee.
If you very rarely overdraw an account you've maintained for a long time, approach a customer-service representative about having the overdraft fee removed.
Many banks will waive such a fee for normally reliable customers. , Your bank may consider waiving a series of charges stemming from the same overdraft if you're willing to set up a savings account for automatic overdraft protection.
As an added incentive you could offer to accept other services with the bank in exchange for eliminating the fees.
About the Author
Marilyn Long
Marilyn Long is an experienced writer with over 23 years of expertise in lifestyle and practical guides. Passionate about sharing practical knowledge, Marilyn creates easy-to-follow guides that help readers achieve their goals.
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