What is overdraft protection?
Lets start with the basics. Overdraft protection sounds like a nice, neat safety net placed under your bank account, doesnt it? For instance, lets say you didnt properly balance your checkbook, or your paycheck got deposited a day late, and you spent more money than you had in your account by using your debit or ATM card. Enter overdraft protection: Its typically marketed as a convenience for you. However, what it often ends up being is a way for the bank to make some easy money off of you. How so? This feature comes at a price. Overdraft protection is just a fancy way of saying short- term loan. • How much does it cost? Activating your overdraft protection feature on your account will typically run you roughly $30 a pop. If you accidently spend $20 more than you have in your bank account while out shopping, your overdraft protection kicks in. Your check or debit card is accepted, but youll end up paying $50 for that purchase when you tack on the overdraft fee. The Center for Responsib
