| Did your bank auto-enroll you in their overdraft | | | | finance book, and for the coffee and doughnuts. You'll |
| protection program? Maybe you weren't paying close | | | | be using your bank (checking) credit card. If you run |
| attention to the bank representative and said, "Yeah, | | | | out of cash in the second account it is OK. The worse |
| sure...whatever" when asked about overdraft | | | | thing that will happen is you'll get a "decline" at the |
| protection? Then POW! You had to pay excessive | | | | counter. No fees will be applied to your account. This |
| bank overdraft fees. | | | | strategy is too cool, huh? |
| If you've ever paid overdraft fees this article applies to | | | | Link to savings or line of credit. This is a solid strategy. |
| you! | | | | Most banks will not charge you to link savings to |
| Here are three ways to "one up" the banks and avoid | | | | checking. This is great for avoiding overdraft situations. |
| those pesky overdraft fees: | | | | It is usually as simple as signing some extra paperwork |
| Bank at a credit union or a small local. The smaller local | | | | to set it up. Another option is to link your account to a |
| banks make it much easier to decline auto-enrolling in | | | | line of credit. This option is fine but keep in mind that |
| overdraft protection. The credit unions are also really | | | | lines of credit charge interest for the money that is |
| good about this too. Plus, local banks and credit unions | | | | transferred to the account. Why bother? (See #1) |
| generally allow customers to have lower balances and | | | | BEWARE: Some banks will charge you annual fees to |
| usually charge the lowest fees in the industry. This is | | | | make transfers between accounts or flat fees to |
| the way to go! | | | | make the transfer. Forget about it! What good is that? |
| Dual accounts. Set up one account to pay your | | | | (See #1 again) |
| important bills like the mortgage, electricity, water, | | | | In conclusion, consider linking to a savings account or |
| groceries, etc. Then set up another account to pay for | | | | line of credit, setting up dual accounts, or my |
| items that you pick up day to day. You'll use the | | | | favorite...shop local banks and credit unions to avoid |
| second account to pay for lunch, pick up the new | | | | nasty bank overdraft fees. |