| Banks provide us with a very useful service. In the | | | | place. These programs cover charges made to debit |
| very simplest terms, a bank offers us a safe place to | | | | cards, credit cards and checks even when the |
| keep and organize our money - and in some cases | | | | account has a negative balance. They also allow the |
| even let us earn interest on that money. Pretty good | | | | bank to charge an overdraft fee for this service. |
| deal. But there is a catch, of course: bank fees. | | | | 2. The majority of banks with overdraft protection |
| Bank fees are one of the two main ways banks | | | | programs automatically enroll new customers in these |
| make money. (The other way is by lending out our | | | | programs upon new checking account sign-up - often |
| money to others at a profit). So, it makes sense that | | | | without making it very clear to the new customer |
| banks should charge some fees in order for them to | | | | exactly how it works. |
| stay in business. | | | | 3. Customers who are enrolled in overdraft protection |
| However, sometime during the past couple of | | | | programs are usually not aware that their bank will |
| decades, bank fees somehow went from being an | | | | approve debit charges made at a merchant even |
| extra income source for banks to becoming a primary | | | | when the account has a negative balance. This can |
| income source. One of the biggest sources of | | | | result in the customer paying $100 or more in a single |
| fee-based income for banks is that of overdraft fees. | | | | day in overdraft fees. |
| In fact, banks bring in about $30 billion per in overdraft | | | | 4. For most banks, there is no limit to the number of |
| fees in the U.S. alone. That's pretty big business. | | | | overdraft charges you could pay in a single day. |
| As consumers, it is important that we keep ourselves | | | | 5. A few banks now offer no-overdraft-fee checking, |
| educated about banking and overdraft rules so that | | | | which means they will cover charges to |
| we can avoid paying overdraft fees whenever | | | | negative-balance accounts - but will still not charge you |
| possible. | | | | an overdraft fee. |
| Here are 5 points about banking and overdraft rules | | | | Keep these rules in mind in order to keep the bank |
| you should know: | | | | fees you pay to a minimum. |
| 1. Most banks have overdraft protection programs in | | | | |