Making Cents of Overdraft Protection

Overdraft Protection is a service tied to your checking account that for a fee, will allow you to make purchases with a check, debit card, or allow automatic payments to process even if you lack sufficient funds.

Options and fees vary by financial institution. One option is automatic transfers of predetermined increments from a savings account, when you fall below your available balance. Doing this will incur a fee in the $5 to $12 range.

Another option is tying your account to a line of credit. This also deposits predetermined increments to your account, but instead of a fee, you are charged interest on the amount borrowed.  

Finally, be careful with Courtesy Pay which may charge a fee of up to $40 for every transaction that falls below your balance. 

You can opt-out of these services, but you run the risk of being declined for purchases, or being charged Non-Sufficient Fund fees.

Avoid these fees altogether – by reconciling accounts, setting up text alerts, and sticking to your spending plan. If you need help getting your finances on track, speak with one of our qualified Financial Coaches today.