| We all daydream. And, when we do, we often imagine | | | | or charges rejected due to insufficient funds. |
| a life that is almost like this one, but with a few, special | | | | Unfortunately, many bank customers do not feel |
| modifications that just make it that much more fun and | | | | protected by these programs - we feel tricked. Why? |
| rewarding. Cross-country travel without the long wait | | | | Because, banks charge a hefty fee every time an |
| times. Hot fudge sundaes without the fat and calories. | | | | overdraft goes through. In other words: you might end |
| Relationships without fighting over the remote. Banking | | | | up paying a $35 "fine" for charging a $5 latte onto your |
| without overdraft fees. | | | | debit card. Doesn't feel fair, does it? |
| Well, those all sound like a pipe dream, don't they? And, | | | | Who is to Blame? |
| frankly, they are. Except for the last one, that is. Yes, | | | | Can you blame the banks for this situation? Not really. |
| nowadays, you can find checking accounts from | | | | After all, they need to be able to turn a profit for the |
| banks that will never charge you an overdraft fee - | | | | services they provide, don't they? In a capitalistic |
| even if you overdraw your account. | | | | society, individuals and banks are motivated by |
| Why No-Overdraft Checking Matters | | | | self-gain and profit. |
| If you are like most of us, your banking needs are | | | | While it is hard to blame banks for trying to turn more |
| pretty simple. You want somewhere safe to keep | | | | of a profit, some people believe banks have gone too |
| your money. You want to be able to access your | | | | far when it comes to overdraft fees. After all, together |
| money when you need it. You need to be able to | | | | they bring in almost $30 billion per year in overdraft fee |
| check your recent banking activity and current balance | | | | -based profits each year. The bottom line is: ultimately, |
| information. And, you wouldn't mind earning a little bit of | | | | you and I are to blame for feeling "screwed" by our |
| interest in the process. Unfortunately, most of the | | | | banks if we do not take action to get ourselves into a |
| major banks in operation today won't let your life be | | | | better situation. |
| quite that simple. | | | | How to Achieve No Overdraft Fees Banking |
| Banks make life more complicated for all of us by | | | | If you want to achieve no-overdraft fees banking, you |
| featuring complex fee structures. One of the biggest | | | | have two main options: |
| components of bank fees is the overdraft fee. | | | | 1. Fight your bank every time you get an overdraft fee |
| The Reason Overdraft Fees Have Become Such a | | | | charge on your statement. And, fighting your bank |
| Big Problem | | | | sometimes works and you can get a refund. However, |
| In the old days, most banks would charge a monthly | | | | your time is valuable, so you don't really win even |
| checking fee. They would also charge additional fees | | | | when you get a refund. |
| for processing checks. However, about 10 years ago, | | | | 2. Switch banks to one that offer no-overdraft fee |
| there began a trend toward free checking. Pretty | | | | checking, even when you overdraw your account. |
| soon, every billboard you passed by proclaimed the | | | | These banks are few and far between, but there are |
| merits of free checking at your local bank. Of course, | | | | a number of national banks that offer no-overdraft |
| to make up for the lost revenue from checking | | | | checking. |
| account fees, banks had to come up with a new plan. | | | | Evaluate your options and consider switching as soon |
| Enter overdraft protection programs. | | | | as possible. The sooner you switch, the sooner you |
| Overdraft protection programs are a way for banks | | | | can stop paying overdraft fees. |
| to "protect" their customers from having their checks | | | | |