How to avoid paying overdraft fees/banks with lowest overdraft fees?

Question

Bank of america is very stealthy in charging overdraft fees. For instance, my account had a certain amount of money, I went and used my debit account for several different transactions. I log in this morning and found 6 negative transactions. Why? Because Bank of America cashed a check I wrote several days prior, that day but never bother to display this as being cashed in my online account, overdrawing it. So I now I owe $35 several times over for small charges as low as $.95! This is very deceptive. How can I avoid paying these ridiculous fees? I am not rich and cannot afford to have thousands sitting in my account. Any banks with lower fees and less deceptive practices than bank of america?

Answer 1

It is YOUR responsibility to keep a good checkbook register which reflects how much money you really have. Since you wrote that check, you should have known to look for it on line before accepting that number as a true balance. It is not the bank's fault that whoever you sent that check to was slow depositing or cashing it. My mom just deposited a couple of checks she had misplaced from last April. If the people who wrote them thought as you do, they are in for a surprise.

What I do to avoid such fees is attach a "line of credit" to my checking account which covers such overdrafts. It is credit and I must pay it back, but that cost is usually less than one overdraft fee and avoids the complications of other checks bouncing or adding up more fees.

It used to be a free service, but lately banks are starting to charge a fee for it. Still, it is much cheaper than your experience and avoids nicking your good name with the bank.

There are times when I do so on purpose ... such as real estate tax time.

Answer 2

Here's a practical solution: try finding an account that has a zero overdraft fee. I haven't seen too many (as in none) in the traditional banking world without some kind of catch. Another option out there, though, is going with a prepaid card. They give you a lot of good features that you need from a "bank" account, but with some differences. The one I have is a ReadyDebit card and it has no overdraft fees. I'll warn you though, the way they can do this is because they will decline transactions if it would result in your balance going negative (usually triggering an overdraft fee at other banks). If that sounds like what you want (and it does), then give it a look.

Also, there's a blog I've seen that had a good post on overdraft fees. I found it cause it mentioned the same card that I have. The blog is call quitwastingmoney.blogspot.com. Check it out.

Answer 3

All NSF fees are avoidable. All people who overdraft their accounts on a regular basis are not keeping track of their balance. That's your responsibility. Never go off a balance that shows on the computer - you need to reconcile it by deducting everything that has not cleared - like the check. Then you know what you can spend.
You need to keep track of your balance in a check register. Write everything down and subtract anything you do whether it's a check, automatic payment, card purchase, cash withdrawal and add in any deposits. At a minimum write down the amount because that's the most important thing to write down. Subtract what you authorized and you have what you can spend without overdrafting your account. Reconcile to your bank statement every month or more often if you need to online. Check off everything in your check register that has cleared then take everything that has not cleared and subtract it from what the bank has. They should match.
Sometimes a checking isn't for everyone. It might be cheaper to use cash to buy things and buy money orders to pay bills. Just think of all the money orders you can buy for $35.00.

Answer 4

I understand that you feel very deceived right now, but you need to take some responsibility here. You wrote the check right? It doesn't matter when the check is cashed or when it shows up on your online banking, you need to treat the money as if its gone. It sounds like you need to keep better track of your budget and spending habits. If you have this happen often, I have a few suggestions. One, sit down and figure out your budget. Two, once you have figured out how much "fun money" you have to spend after bills, take it out in cash and use that instead of your debit card. That way you know exactly how much money you have left to spend. If you aren't comfortable with cash, then you need to use a check register to record your debit transactions and checks that you write so you can keep track of your balance. I might also suggest online bill pay instead of writing checks. The transaction goes through much faster than if you send a check through the mail. Good luck! All of us have had to struggle with money issues at some point, so don't feel alone. It was only after much trial and error that I was finally able to stop overdrawing my account.

Answer 5

You shouldn't count on the balance that you see on line or at any MAC machine if you have checks outstanding. You should always keep track of your transactions in your check book (both ATM & purchases & checks) and use your balance (this is your responsibility) it takes time for checks to go through the mail then get processed. It is not deceptive on the banks part. You can only spend what you put in. It doesn't matter when the check is cashed as soon as you write it you should consider that money spent. They can only process checks as they recieve them. You don't need to have lots of money in your account to ensure that you don't get charged overdraft fees. You need to manage your account better.

Answer 6

First of all you need to balance and keep track of your funds better. You know how much money you have and so you should know how much you can spend without going over. You can call customer service and possibly get the charges removed, but I doubt it. If you find that you cant pay the charges and are worried about more coming in then close your account now and go to those places and pay in person with cash. But most of all start paying attention and keep track of how much you have and spend. Good luck

Answer 7

dear young man, all banks charge 35 dollars for overdraft fee for each transactions, the best cause for action is to keep an account of how much money you have.

Answer 8

First, it is common banking practice to process debits largest ones first. The reasoning is that the larger amount is probably more important. But folks often get very upset that they end up with multiple overdraft fees.

Secondly, avoiding these overdraft fees is very simple. Don't allow your account balance to get so low and keep better track of your debit transactions.

Answer 9

I agree quit writing checks if the money is not there.

Answer 10

wait a minute you are blaming the bank because you are a very poor money manager -- come on get real -- and grow up!!!