CAAB

Investing in People, Strengthening Communities

Two Ways to Avoid Costly Overdraft Fees in Automated Overdraft Programs

Tips on ways to protect yourself from costly overdraft fees.

Two Ways to Avoid Costly Overdraft Fees in Automated Overdraft Programs

You can protect yourself from costly overdraft fees by:

Watch Your Balance

Track the money you deposit into and with draw from your account. You can do this on a paper check register or electronically. Remember to track ATM withdrawals, purchases you make with your debit card, bills that get debited electronically from your account, and checks. It also may be a good idea to keep a cushion of funds in your account to help prevent unintended overdrafts.

Link Your Checking Account to a Savings Account

If the accounts are linked and you do not have enough money in your checking account to cover a transaction, the bank will transfer funds from your savings account to your checking account to cover the difference. This can save you money over other overdraft programs because most banks will only charge you a small fee, if they charge at all, for transfers. But, this option is useful only if you have enough money in the linked savings account to cover the transaction. Otherwise, ask your bank about other less costly alternatives to over-draft payment programs, such as a linked line of credit or affordable small-dollar loan.

 

About Capital Area Asset Builders

Capital Area Asset Builders (CAAB) is a non-profit organization whose mission is to empower low- and moderate-income residents of the Greater DC Area to take control of their finances, increase their savings, and build wealth for a better future.

Connect with CAAB via our social media platforms:

How to give

Now, more than ever, non-profits like Capital Area Asset Builders (CAAB) need your help. Please support CAAB as we continue to help DC residents manage and/or improve their financial situation during these difficult times. If you can't afford to give a monetary gift, please visit our Amazon Wish List where you can choose from a variety of items that CAAB needs in order to better serve our community.

or send a check or money order to
Capital Area Asset Builders (CAAB)
c/o Joseph Leitmann-Santa Cruz, Director of External Relations
1100 H Street NW, Suite 200
Washington, DC 20005