Overdraft Protection, just another fee to add on to the long and growing list of bank fees we love to hate.
As an alternative to opt-in overdraft protection (with heavy fees) which banks continue to urge customers to elect, consider less-costly options such as overdraft protection tied to a line of credit or savings account– which all banks offer.
Under the new bank fee rules, if a customer does nor opt in for “Overdraft Protection” a bank can not charge a fee for a declined a debit-card purchase or for authorizing a transaction despite insufficient funds.
For those who have opted in, the new CFA study shows some bright spots. Several of the 14 banks, including Wells Fargo and Citi, do not charge sustained-overdraft (daily) fees, giving customers a little extra leeway to get their finances in order. And some, including Wells, TD Bank and PNC, do not charge fees for an under-$5 overdraft – eliminating the notorious $38 cup of Starbucks coffee.
There are some other signs of progress from the study, which you can read here. Including, the order in which transactions are posted, which can prove very costly to people who make lots of small debit-card purchases that are posted after a more sizable overdrafts even if they occurred before.
For full article see: Even With Opt-In, Overdraft Fees Still Kill by Jeff Gelles