Start Saving Money by Eliminating Overdraft Fees

Planning & Saving
on June 19, 2013

There are many different situations that lead to people writing a check or using a debit card in excess to the amount they have in their checking accounts. When this happens, an overdraft fee can be accrued and this places an additional stress on a person’s finances. Many people live in the habit of accruing overdraft fees that range from $35 to $45 per bounced check. While the term “bounced check” is an old-fashioned term for over drafting an account, it still applies today even when a person uses a debit card past the limit of the funds in their account. Breaking the cycle of over drafting accounts can lead to more stability in finances and more potential money that can be saved.

Start Saving Money by Eliminating Overdraft Fees

One of the first steps to take to begin eliminating overdraft fees is to take time to keep an accurate record of your account. Too many times people have gone to pay for a pack of gum or a cup of coffee, only to later find out they did not have enough money in the account to cover the charge. Because of this, a $40 overdraft fee can be applied to a person’s checking account simply because they overdrew a very small amount. If the overdraft fee is not paid within a week or less, an additional fee may be applied. This can quickly put a person in over his head in just late finance fees. Spending time to keep an accurate record of your bank account can quickly help to get this problem under control.

Positive Steps to Take to Reduce Banking Overdraft Charges

If a person lives from paycheck to paycheck, it can be very easy to make a simple error by assuming enough money is in an account to pay for a tank of fuel or for a few groceries. However, if an individual spends just $15 on something and only $13 is in his account, he is automatically subject to an overdraft fee unless he has overdraft protection. Overdraft protection is an account setting that withdraws money from a credit card or from another account if a person makes a purchase that exceeds how much money he has in his checking account. While this is helpful, it can also be of no avail if someone is low on all accounts and does not have extra revenue to draw from.

The best way to begin eliminating overdraft charges and to begin saving money is to always be aware of how much money is available in an account. Receiving bank balance text messages that inform you when a low balance has been reached is helpful. Keeping accurate records of money that has been spent and of transactions that are pending is one of the most effective steps a person can take to ensure overdraft fees are eliminated.

%d bloggers like this: