| Many Americans have found their bank accounts | | | | when the big check will go through, so it could come in |
| cleaned out or even closed because of overdraft | | | | at any time and clean out your account. |
| fees. | | | | One of the big problems with checks is that you may |
| Many banks will charge an overdraft fee of $35-$100, | | | | have to write and mail checks when the money is not |
| every time an account becomes overdrawn. A | | | | in your account in order to pay bills on time. This can |
| checking account becomes overdrawn whenever the | | | | quickly lead to overdraft fees, because the checks |
| amount of money paid out in checks or debit card | | | | may get cashed before the money is available. This |
| purchases exceeds the amount in the account. Banks | | | | can happen because checks are now cashed almost |
| are quick to charge overdraft fees because they are | | | | instantly by some banks. |
| a big source of income for financial institutions. | | | | Most banks now offer electronic bill pay features that |
| Fortunately, it's very easy for the average person to | | | | allow you to pay your bills using an electronic funds |
| avoid overdraft fees if they use a little caution and | | | | transfer. The advantage to this feature is that you |
| common sense. The most obvious way to avoid | | | | control when the money leaves your account. For |
| overdraft fees is to not write checks or make | | | | example if the electric bill is due on the 14th and you |
| purchases for more than is your account. | | | | don't get paid until the 13th you can pay the electric bill |
| Unfortunately, it is sometimes very hard for a person | | | | with an EFT on the 13th. One advantage to this |
| to tell how much money is actually in their checking | | | | method is that you can be sure the bill has been paid |
| account. | | | | because there is no check to get lost in the mail. |
| The paper statements sent out by most banks are | | | | An option to avoid is automatic debit which many |
| usually several days out of date by the time they | | | | companies will try to get you to sign up for. This |
| arrive in your mail box. So are the letters that inform | | | | method allows a company to automatically withdraw |
| you that your account is overdrawn. | | | | money from your account on a set date. Obviously |
| The best way to monitor your account is to use the | | | | this can lead to overdrafts so it should be avoided. |
| online banking offered by most banks. This lets you | | | | Another bank feature to be leery of is overdraft |
| see your account balance in real time and to monitor | | | | protection, especially overdraft protection that links |
| your account on a daily basis. Most people should go | | | | your checking account to a savings account. This lets |
| to their bank's website and check their account | | | | the bank use the money in your savings account to |
| balance everyday. | | | | cover your checks. The problem with this feature is |
| Another good way to avoid overdraft fees is to try to | | | | obvious, it can enable the bank to clean out your |
| avoid writing paper checks. The problem with paper | | | | savings and leave you with no money. |
| checks is that it may take days or weeks for them to | | | | Everybody needs to watch for overdraft fees and try |
| clear. Many large companies may not actually cash a | | | | to avoid because they can cost you a lot of money. |
| check for weeks. This means that you don't know | | | | |