| If you were a parched traveler in the middle of a hot | | | | you, they will also turn right around and charge you an |
| desert looking for water, you can imagine what a | | | | overdraft fee for the trouble. These fees usually range |
| welcome sight a lush oasis spotted in your path just up | | | | from $25 to $35 or more. That means that just three |
| ahead would be. That is exactly how jaded bank | | | | overdrafts in a month can cost you over $100! |
| customers who have been paying too much money in | | | | Debit Cards Make Things Worse |
| overdraft fees to their bank each month feel when | | | | What really has made the whole situation more difficult |
| they find a no-overdraft-fee bank: a sense of pure | | | | is the rise of the debit card. Debit cards that are |
| relief. | | | | attached to a checking account are so convenient to |
| Why We Pay Too Much in Overdraft Fees | | | | use. After all, it is so easy to make a charge on your |
| Banks bring in over $25 billion each year in overdraft | | | | debit card for the goods and services you need. But |
| fees alone. That is "billion" with a "b." Guess who is | | | | here is the catch that most consumers don't know |
| footing the bill? Average citizens just trying to scrape | | | | about: your debit card transaction will be honored by |
| enough money together each month to pay bills and | | | | your bank, even if you do not have sufficient funds to |
| get by, that's who. If asked, most people would agree | | | | cover it. |
| that they do not feel they need to help banks out | | | | Now, this sounds like your bank is doing you a favor, |
| financially in this way. (Banks are already getting plenty | | | | but remember, when you have overdraft protection in |
| of help as it is). | | | | place, the result is - ding - yet another charge to your |
| But, what exactly brought us to the situation with | | | | account. These can really add up fast, putting you |
| overdraft fees that we find ourselves in now? How is | | | | more in the hole. The whole situation is set up to |
| it that banks can be making such a killing in fees? The | | | | basically invite more overdraft charges into your life. |
| answer lies in the relatively recent rise in two related | | | | How to Find a Bank with No Overdraft Fees |
| banking phenomena: overdraft protection programs | | | | If you want to find a bank with no overdraft fees, |
| and the debit card. | | | | check out these tips: |
| Overdraft Protection Programs Are Not Your Friend | | | | 1. If you live in the U.S., make sure that the bank is |
| Overdraft protection programs certainly sound friendly | | | | FDIC-insured. This means that, even if they were to go |
| enough. When they were introduced about a decade | | | | under, your funds would still be safe. |
| ago, most consumers took them for what the name | | | | 2. Choose a no-overdraft-fee bank that allows you to |
| implies: a way for the bank customer to be protected | | | | sign up online. |
| from checks and other charges "bouncing" due to | | | | 3. Make sure the bank gives you access to a |
| insufficient funds in the accounts. And, in a way, this | | | | nationwide ATM network so you have ready access |
| understanding is accurate: these programs do indeed | | | | to your cash. |
| protect bank customers from having their checks | | | | Once you find your no overdraft fee bank, you will be |
| bounce or debit card transactions rejected. | | | | glad that you made the switch. The monthly savings |
| However, that's where the "protection" ends. You see, | | | | will be noticeable right away, since you will never have |
| even though your bank will cover those charges for | | | | to pay an overdraft fee again! |