You are here: DIME Home > Finance > Avoiding Overdraft Fees

Avoiding Overdraft Fees

You can use your debit card for everything from on-line purchases to grocery shopping to utility payments. But, have you ever logged into your checking account only to discover your bank hit you with an overdraft fee? With overdraft fees costing $25 to $35, they can quickly add up. And if youíre already in financial trouble, overdraft fees can make the situation worse. By working with your bank and planning ahead, you can avoid these fees and prevent the needless draining your hard-earned money.

Author: Lori Anderson
Date: Feb 14, 2013 - 12:54:00 PM

Printer FriendlyPrinter friendly page

You can use your debit card for everything from on-line purchases to grocery shopping to utility payments. But, have you ever logged into your checking account only to discover your bank hit you with an overdraft fee? With overdraft fees costing $25 to $35, they can quickly add up. And if youíre already in financial trouble, overdraft fees can make the situation worse. However, there is no reason you have to suffer from overdraft fees. By working with your bank and planning ahead, you can avoid these fees and prevent the needless draining your hard-earned money.

Check your local bank policies
Generally, when you set-up an account with a bank, you are offered the service of overdraft protection. If you agree to this service you gain the "benefit" of not having to worry about transactions being declined at a point of sale due to insufficient funds in your account. When there is not enough money to pay for a debit from your saving or checking account the bank allows the transaction, loans you the amount required to cover the amount, and then charges a fee to your account for the convenience. Sounds great, but remember, you are left with a hefty negative balance on your account which is the sum of the money the bank paid in the overdraft and the fee for that payment.

This service of overdraft protection and how it works can vary from bank to bank. If a type of overdraft protection is not specified, check with your bank to see if they would decline the transaction instead of paying the overdraft. If the transaction is declined you will avoid the specific overdraft fee, however, you might receive a fee for the decline from both your bank and the company that is being declined. It's possible that the fee for the decline may be more than the bankís overdraft fee, so spend carefully!

While the service of overdraft protection can be helpful for emergencies, if you don't track your spending wisely and tend to often get overdraft fees, you run the risk of depleting your savings account or pushing your credit card to its limit. If this is your case, consider some of the following strategies.

Keep track of your expenses with your check register
Maybe this sounds obvious, however, in a world where you can pay for just about anything with you debit card, itís easy to lose track of how much you have spent. It is always a good practice to take your check register with you and record your purchases. By making this a habit, you will have the security of always knowing how much money is left in your personal checking account.

Deduct the automatic drafts to your checking account in your check register before you make any purchases
It is easy to forget payments that are automatically deducted from your checking account. These deductions often include payments for insurance, utilities, and a host of other services, such as an online movie streaming service. Take the time at the beginning of the month or your pay period to record the automatic deductions from your account in your check register. That way, you wonít end up with any surprises.

If you cannot remember to balance your checkbook, pay with cash
We live in a hectic world, and let's be honest; at times it's easy to forget to balance your checkbook. If you absolutely cannot remember to record your debit card or checking purchases, consider not using them at all. Check and debit cards are supposed to be a convenience. However, if they have become a burden to use, there is no reason to add more stress to your life. Consider making all your purchases with cash. If you have to mail a payment, you can purchase money orders.

Get help from your bank
Your local Minnesota bank might have different types of checking and savings accounts that will work for you better and provide more services than the one you have now. If your overdraft fees seem exorbitant, you can consider looking for a bank with less expensive fees. However, if you are getting a lot of overdraft fees consider seeing a financial or credit counselor who can help you make a budget. It is not necessary to allow overdraft fees to drain away your hard-earned money. With a little planning, you can make them a thing of the past.

Sterling State Bank in Minnesota provides personal banking services including checking accounts, saving accounts and debit cards to meet all your financial needs.

View all articles by Lori Anderson

Link to this article:

Code to copy: <a href="">Avoiding Overdraft Fees</a>

Related Articles...

College Account or Retirement Account Which Money To Spend?

Jun 27, 2011 - 6:08:52 PM

It can be very hard at times to figure out which money to use for paying your student's college bills. Some use their retirement balances which get favorable tax treatment, while other people use their special college account funds.... [Read the full story]

How Do Credit Card Companies Make Their Money?

May 26, 2011 - 8:26:22 AM

We've all received offers, often quite persistent, to sign up for a new credit card. Credit cards themselves are great, because you can get the things you need even without cash readily available. However, don't you ever wonder how many credit card companies are out there? Because of the growing market for credit card users, it seems that every day, you get a solicitation letter for a new credit card company. The large playing field results in a lot of competition for credit card companies.... [Read the full story]

3 Quick Ways To Save Money

May 23, 2011 - 3:03:57 PM

There are hundreds of easy ways to begin cutting your expenses and saving more money each month. Some are as simple as cutting down on impulsive shopping sprees and entertainment, while others involve a little creativity. If clipping coupons is the only thing that comes to mind when you think about ways to save, read on!... [Read the full story]

Mortgage Assistance In Canada - The Right Help

May 3, 2011 - 10:01:27 PM

Most people take out mortgages to purchase a home. These mortgages are generally paid on a monthly basis. But, for some people getting the right mortgage plan may be difficult due to lack of proper information and for some due to lack for credit history. The government provides mortgage assistance in Canada so that the citizens can overcome the difficulty in taking out a mortgage.... [Read the full story]

Newest Articles in Popular Topics:

Business & Marketing Computers & the Internet Entertainment Health & Fitness
Finding Ways To Save Money And Maximize Revenue In Business
Cooper's Golf Park Tees Off Their New Website
Fiinovation Adjudged CSR Team of the Year & Caring Company at World CSR Day
Reasons Why Kale Realty is the Best Real Estate Firm in All of Chicago
Montreal Tech Startup Kangaroo Rewards Launches Mobile Loyalty Program for Local Merchants
It is time we break out of the SEO Shelter
3 Strong Reasons You Should Start Your Own Blog
Evolve Your Career With CompTIA A+ Certification Exam
High speed VMware Backups - Powered by UltraBlaze(ô) from Vembu
Things to Consider When Selecting a Domain Name for Your Website
Fling Boom "Launches" This Holiday Season
Beautiful Abstract Canvas Art is Up for Grabs
Buying Art as a Gift: Tips From an Expert
Complete Guide to the 2014 Gatlinburg Fine Arts Festival Released by Jackson Mountain Homes
Learn Blues Music Online-Alternative to Traditional Piano Lessons
Causes and Treatment of Acne
What Type Of Constipation Home Remedies Are There?
Manual Wheelchairs: Buying One
Instant Facelift with Dental Implants
Lasik Surgery Leading Correction Of Vision Issues

Home & Family



Enhance Your Learning Experience Through Best Responsive Elearning Development Tools
Best Apps for Learning German
Esvees is Cranbourne's Elite Hair Dressing Company
Ozone Generator
Practical Tips When Choosing Gates and Gate Openers for Your Home or Business
Why Cases are Required for Mobile Phones?
Are Dealership Services Worth It?
2015 Jeep Grand Cherokee Named Must-Shop SUV for Towing from
Online Selling With An Appraisal Advantage
Macsome AudioBook Converter released New Version V2.0.4
Aditi Ashok signs off with a double
Softball Coaching: Avoid Becoming A Nattering Nabob of Negativity
Softball Coaching Tips - The Funnel Approach
Pick Up Specialized Advice on Jumping Exercises Which Are Highly Effective
Vertical Jump Training Tactics to Increase Your Athletic Performance
Tips for Choosing the Right Paris Short Lets
Hostels - the best choice for working womens and college students
Perfect holiday? Book a cruise and sail in Croatia!
Say Aloha to Your Best Vacation Ever with Kohala Coast Properties
The Perfect Guide for a Fantastic Family Trip to Kansas City


Follow & Share Your Favorite Video Articles

Tell a Friend About This Site

Chamber of Commerce - on the Web logo

Subscribe to the eMarket SmartsTM Newsletter in order to keep up to date with what's happening with, get the emails on new video articles, featured articles, and more. Your privacy is always protected. We never rent, sell or trade your private information


Service provided by GetResponse Autoresponders

Recommended Associates

Latest Articles in All Categories

Putting Up a Small Commercial Printing Business
So You Might Be Unemployed And Desire To Become A San Francisco Real Estate Investor Now
Meditation and Mindfulness: Dealing With Emotion
CPA Websites: Five Essential Ideas for Composing Convincing Articles
Set Goals In Order to Come Up With Your Action Plan
Is the Air in Your Home Safe to Breathe?
Coarse Fishing Tackle Review: The JW Young 13ft Trotter Rod
Section 1031 Exchanges For San Diego Real Estate Investors
Phoenix Real Estate Investing For Highest Possible Earnings
Legendary are the Volk Racing TE37 Wheels
Developing the Next Generation Wall Station (ChaseDesk™) for Healthcare - A Case Study
What are step down transformers?
Introducing Sharehype, the Revolutionary Tool for Online Marketers
Rewards To Shopping For Austin Real Estate On The Web
Hydroponics for Beginners

Do you write?

Would you like submit your articles and have them approved on a priority status? Find out more about how you can become a Priority author for pennies a day! Click here. Home
  • Business (9328)
  • Computers & The Internet (5740)
  • Entertainment (1348)
  • Family (958)
  • Finance (1963)
  • Health (4246)
  • Home and Living (6670)
  • Marketing (6113)
  • Shopping & Product Reviews (2624)
  • Sports (694)
  • Travel and Vacations (1689)
  • Video Articles (1)
  • Editors Pick (1)