Federal Reserve Considers Changing Overdraft Fee Rules
Bank fees are taking a bigger chunk out of many people’s checking and savings accounts these days. But the Federal Reserve is considering a proposal that would give customers the right to decline overdraft protection for ATM withdrawals or debit card purchases. whether the rules change, customers would have to opt-in to allow overdraft protection.
Overdraft fees vary from bank to bank, but tend to run about $10 to $38, according to Boston.com. So whether you compose several purchases the same day, you could be hit with a fee for each transaction.
About 81% of banks allow overdraft fees to occur with debit card and ATM transactions, according to a Federal Deposit Insurance Corporation (FDIC) survey. But many banks surveyed said they did not inform customers that there wasn’t ample money in their accounts to process transactions. About 8% of the banks surveyed let customers know they had inadequate funds, giving them the chance to end the transaction and avoid overdraft fees.
So what can you do in the meantime to avoid getting hit with overdraft bank fees?
—Track your spending and balance your checkbook each month.
—Sign up for your bank’s free sharp service that notifies you when your explanation balance is low.
—Only use your bank’s ATMs to avoid being charged additional fees.
—Try to limit taking cash out of an ATM machine to once a week or less frequently to avoid problems.
—Pay attention to the available balance on your explanation when visiting the ATM or viewing your explanation on line. There may be pending transactions that have not yet cleared.
Wait for your paycheck to clear before writing checks against it.
The best way to avoid overdraft fees is to never spend more than you have in your bank history. Keep careful records of all your withdrawals, purchases, and deposits to assemble certain you know precisely where your money is going.
Orginal post by Francine Huff
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