Check out these 6 tips to avoid overdraft fees.
As new rules on banking regulations have started to take effect to help reform overdraft coverage, some banks have announced that they will be doing away with overdraft fees on purchases made with debit cards.
Review these 6 tips to help avoid unnecessary fees relating to overdraft protection.
6 Ways to Keep Overdraft Fees from Taking Over
1. Check what your bank offers for overdraft protection
You might already receive overdraft protection on your accounts—and not know it. Some banks offer automatic overdraft protection. Take a look at what your bank offers as well as the fees they charge for the service. If you don’t agree with the terms of their automatic protection, you may be able opt out of the service.
2. Balance your checkbook regularly
If you know exactly how much money you have available, you’re less likely to overdraw your account. So keep a close eye on your funds by balancing your checkbook. Keep a register of the transactions in your account. Then compare that register to your monthly statement. Or check it regularly against your transaction history through online banking.
3. Set up automatic account alerts
Some banks like EverBank allow you to set up e-mail or SMS text message alerts on your account when your balance hits a certain amount. If your bank offers this service, consider setting up an alert. It can warn you if your balance reaches an amount where you’re close to overdrawing.
4. Use mobile banking to check your balance before you buy
Want to buy something but are unsure of your account balance? If your bank offers mobile banking, you can check your balance on your Internet-enabled cell phone. For example, with Mobile Banking through EverBank, you can use the same User ID and password that you use to sign on to the Online Financial Center to check your account balances anytime and anywhere you have a cell phone signal. If you need to, you can even transfer funds between your EverBank accounts so you have funds available.
5. Leave a cushion of cash in your account, just in case
Consider keeping an extra $100 to $500 above your account’s minimum balance at all times. When you do, you’re less likely to overdraw. And if you notice your account getting close to your cushion amount, you can transfer money into that account or use another method of payment, if necessary.
6. Use a credit card instead and earn rewards points
To keep from thinking about overdrafts altogether, use a credit card that you pay off at the end of each month, when you need to buy something. You might even use a rewards credit card. That way, you can build up points for every purchase you make. If you don’t have one, consider the EverCard Visa Platinum card (subject to credit approval). It offers one of the nation’s most flexible rewards programs with unrestricted travel options. And you can conveniently pay off your balance at the end of the month through the Online Financial Center.
Take advantage of these helpful tips for avoiding overdraft fees.