If you have a checking account, chances are you’ve had a few overdraft fees in your life. Overdrafts are expensive and embarrassing. So look for no overdraft fee checking account. Luckily there’s a way to avoid them: getting overdraft protection! In this article, you’ll go over the benefits of getting overdraft protection on your account so you can see if it’s right for you.
Preventing Your Account From Being Overdrawn
If you’re someone who is constantly overdrawn, it may be time to consider overdraft protection. This can help prevent unexpected fees and late payment penalties that may result from your account being inaccessible.
There are many ways to get this protection, but the best way is through a checking account that offers no overdraft fee. With this type of account, your checks and debit card purchases will automatically be declined if your balance falls below zero at any point during the day.
Suppose you still need access to funds even when your balance is low or negative. In that case, there are other methods for getting overdraft protection, such as linking one credit card directly with another so that they act like one in an emergency (such as needing gas while driving across the country).
Saving Money On Bounced Check Fees and Overdraft Fees
The next time you write a check, you may want to consider getting overdraft protection. Even though this service does come with fees, it’s still a good idea for many people because it can help prevent bounced checks and overdraft fees.
Overdrafts are expensive! A single overdraft charge from your bank can be as much as $35—and that’s just one transaction! If you don’t have enough in your checking account to cover all of the checks or debit card purchases that go through that day, then those charges will be declined and returned unpaid by the payee (the person or company who receives your payment).
Avoiding Expensive Rental Car Insurance
If you’re planning on renting a car, overdraft protection can be used as a credit card to pay for the rental. You wouldn’t have to worry about having enough money in your account because you already have it taken care of. When people don’t have enough money in their checking or savings accounts, they often get charged huge fees for each transaction that is returned due to insufficient funds. These fees can add up quickly, costing hundreds of dollars!
Avoiding ATM Fees
If you don’t have overdraft protection, then you’ll have to pay a fee when using your debit card at an ATM. This can add up quickly and cost hundreds of dollars per year. If you’re worried about this expense, consider getting overdraft protection so that you know that your card will still work as a backup even if there isn’t enough money in your account.
Another way that overdraft protection can save money is by allowing for free withdrawals from ATMs owned by the same bank where your checking account is held (this is called “institutional” or “in-network” ATMs).
As SoFi professionals, “Accidentally spend more than you have? It happens. If and when it does, Overdraft Coverage covers you up to $50 with no fees.”
In conclusion, getting overdraft protection is a good idea if you need emergency cash. It can save you a lot of money and make your life easier when it comes time to pay a bill or buy something that requires more money than what you have in your checking account.
