Bank overdraft fee is an option that banks offer to their new or existing customers and would love if you opt in for it. The way it works is, if chosen, if you run out of funds and you need to use your bank card for a purchase, you can do it and the bank/financial institution will cover the transaction, sure it sounds good, right? may be! but you will be charged a fee ($32 to $36) depending on your bank, so you could be somewhere an need to by something for $10, this will end up costing you up to $46 because you didn't have the money in your account but the bank authorized it anyway.
I personally hate this feature, I had issues with my previous bank because of the sneaky way they apply it. The problem is the delay in the transactions posting time. I was misled between my current balance and available balance, thinking that my available balance reflected the actual amount I have available after making a deposit. The will do all their best to make you fall for it, so my advice to you is to always decline the overdraft fee option, it might save you a momentary embarrassment by not having your card declined but it will cost you more money, and the worst is when you have many transactions posting at the time against a smaller balance causing you to go overdrawn and that may happen several times. So remember, Big NO to overdraft fee.
No comments:
Post a Comment