What bank should I use that does not charge overdraft fees?

Question

I have been using Citizen's Bank for awhile and just recently got hit with a few overdraft fees while I was away at college.

I really dislike how they run this overdraft policy and want to find a new bank.

Answer 1

All banks charge overdraft fees for routine accounts. Many do offer overdraft protection. The amount is automatically taken from another account e.g. savings or bank card.

Answer 2

All banks will charge overdraft fees if you overdraw your account.

Washington Mutual gives you one "freebie" overdraft per year though. If you don't need it, it rolls over and you have 2 available the next year....and so on.

Wells Fargo will allow you to set up email alerts when things post to your account so you will know to go look at your account if you weren't expecting any activity on it.

If you aren't using this account while you are away at school, look for a bank that doesn't charge a monthly maintenance fee. Those little fees can add up.

Like some of the others have suggested, many banks will also offer you overdraft protection in which they will transfer money from your savings account to your checking account (for a fee!!) if your checking will become overdrawn. The fee for transferring may not be much less than the overdraft fee.

Answer 3

If you write a check for more than is in your account ALL banks will charge you an overdraft fee.

However, what you can do to MINIMIZE it is to open a savings account for say $100, and have it tied to the checking account. If you write a check for more than you have (as long as its under $100 of course), they will move the money from the savings to the checking.

It only works if you maintain the savings account balance, and you need to make sure there is no bank minimum (sometimes it's $5) or your start adding even more fees.

Just keep a good ledger of deposit ins and checks/ATM/withdrawls outs, and your problem should not exist to begin with..

Good Luck

Answer 4

Let me guess, they processed the largest checks first and the fees accumulated so that even the small checks/debit transactions bounced.

All banks process checks/debit transactions this way. The theory is that the largest amount is the most important. You wouldn't want your mortgage payment to bounce while a couple $5 fast food debits went thru.

Answer 5

All banks charge overdraft fees.

Here's a innovative idea. Why not keep track of your purchases and balance your account so that you don't have overdrafts? I've had a checking account for 30 years and a debit card for as long as they've existed. I have never once had an overdraft. Frankly, it's not rocket science.

Answer 6

if you don't like overdraft fees, try the mattress budy!