Tips for Avoiding Overdraft Fees
By Tom Cleary
Money doesn’t grow on trees. It doesn’t just appear in your bank account or arrive on your doorstep. You work hard for the money you have, and you don’t want to just throw it away. Having to pay overdraft fees may make it seem like that’s exactly what you are doing. No one wants to incur the cost of overdraft fees. These tips will help you to avoid overdraft fees and keep more of that hard-earned money for yourself.
Keep Your Checkbook Register Updated
One of the simplest ways to keep from being charged an overdraft fee is to keep a close eye on expenses. This can be done by balancing your checkbook regularly. This traditional practice is still a basic necessity of the tracking process.
Don’t Forget to Record All Expenses
However, with advances in technology the simple task of balancing your checkbook has become more complicated. Now in addition to recording checks and any deposits, you must be careful to record online payments and transactions made using your debit card. Forgetting to record these transactions can result in having an inaccurate idea of your current balance.
Use Online or Mobile Banking to Check Yourself
Everybody makes mistakes. That’s why it’s great to have a way to double check your recorded transactions. With online banking you can check your balance from your computer. Even better, mobile banking allows you to assess your accounts anytime and from anywhere. Regularly checking your account can keep you from getting an unpleasant surprise. Additionally, our CardValet app can help you avoid overdraft fees by allowing you to set transaction limits on your debit card. CardValet lets you keep an eye on how much you spend while also helping you avoid the cost and aggravation of debit card fraud.
Utilize Technology to Track Your Expenses
Of course, the purpose of technology is to make life simpler, not more complicated. So be sure to use the tools that are available. There are a variety of budgeting tools (some of which are free) to help you track your expenses. This article can help you evaluate the products on the market to see which one might work best for you.
Give Yourself a Cushion
Despite the best efforts to track your transactions, the sad fact is that you will probably miss something sooner or later. It can be helpful to build in a cushion for yourself to keep these mistakes from getting too costly. Just put an extra $300 or $500 in your account and then regard that number as your $0 balance. Then if you do happen to dip below your artificial $0, you’ll still have the extra cash in your account.
Link to Other Accounts
Another strategy for protecting yourself in the event of a mistake is to link your checking account to another account. At your request, we can link your checking account to a savings account or a HELOC. Then in the event of a transaction that will cause a negative balance, the amount to cover the transaction will be automatically transferred into your checking account.
Hopefully these tips will help you avoid overdraft fees and keep more of your money at your disposal. If you’d like to take advantages of any of the services offered by Federated Bank, stop in to your local branch and see what we can do for you.
