Is it a good idea to get overdraft protection with my bank?

Question

I know some companies just try to take more money from you by offering these benefits, so I don't know if I should do it or not. The NSF fee is $35 and the overdraft protection service is about $4 minimum for each month that I use it. I don't really know how all this works anyway, so I don't know if it's a good deal or not.

Answer 1

thanks for answering my ? now I will answer your ? I work in this Field this is the best thing since butter you must have this on all of your checking accounts most banks do not charge for it and if you ever make the mistake of over drafting your account you will not get a bad name with any of your creditors. Your creditors will be paid and you will have to then bring your account back into the positive asap good luck

Answer 2

Depends on how much you keep as a cushion in checking and how closely you monitor your balance. If you never draw down to $0, then why bother - that's $48/year you're essentially throwing away. That $48 may be better spent on a safe deposit box or something.

If you keep minimum funds in checking and take all disposable income and put it into savings or investments (I do this to keep myself from needlessly spending money), it might make sense to have the protection should you need to write an emergency cheque or something.

I think the overdraft protection at WAMU is free for my account (because I keep some minimum amount of money in my savings account at all times or something).

Answer 3

Is having a checking account something that's new to you? If you don't spend more than you have in your account, then you don't need overdraft protection. There is no reason to bounce a check---ever. You don't even have to balance your check book if you have a computer and can go in to your account online every day to check your balance.