In the past, almost all banks would automatically enroll customers into a overdraft protection program. In simple terms, this means the protection allows you to draw on your bank account with a debit card or ATM withdrawal even if you do not have sufficient funds. The downside of doing this is that you will be charged an initial fee of $20 to $35 depending on your bank. Due to recent financial reform, there is a mandate for all banks to request that new and existing debit card customer account holders consent to the overdraft protection program. If the account holders do not consent, then their debt card transaction or ATM withdrawal will be rejected & thus no fee will be charged. The reform doesn’t apply to automatic charges for overdrawn checks, pre-authorized electronic payments, & recurring debit card transactions. Continue reading ‘Should I Get Overdraft Protection?’ »
Posts tagged ‘ATM’
I have considered myself to be good at balancing my bank account for many years. For some reason, this year has deflated my ego and increased my distaste for certain banking practices, specifically overdraft fees. After never really having these, I had 5 charged to me on two different occasions during the second half of the year…at about $34-38 each. I was suddenly out a nice chunk of change that continued to bring me below the magic zero balance. The irony in both cases is that I had deposited money in the accounts on both occasions, which would keep me in the black.
On the second occasion, I even have an ATM withdrawal receipt from KEYBANK stating I have positive funds in my balance and yet, this same transaction was listed as one of the overdrafts. I was extremely disappointed with the bank at this point and would have much rather seen a note on the ATM machine stating something to the effect of “Sorry, but due to insufficient funds, your transaction has been cancelled.” Instead, the banks easily give money and then fine you for it later, which seems a little unethical to me. With the technology that exists today to instantly wire funds anywhere in the world, they should be able to figure out how much really is left in my account, so that this does not happen again. If I were to use the card at a store (as it is a debit card) I would be nothing more than happy to get DECLINED! Continue reading ‘Overdrafts Kick You When You Are Down’ »