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2012-05-28 00:19:51
2012-05-28 00:19:51

An overdraft protection fee is a fee assessed to your account when:

1. You have set up overdraft protection for your checking account, usually in the form of a savings account or line of credit/credit card; and

2. You spend more money than you have in your checking account.

Overdraft protection transfers money from the linked savings account or line of credit/credit card in order to pay for the expenses that you did not have enough money for in your checking account. There is a fee for this transfer, but it is usually much less - sometimes a savings of 50% - than an insufficient funds fee, which you receive when you spend more money than you have and do not have overdraft protection.


Related Questions

You may be charged one of two fees: - An insufficient funds (NSF) fee, if you do not have overdraft protection - An overdraft protection (ODP) fee, if you have overdraft protection and money is transferred from your overdraft account to cover the check

It is very possible, but unlikely to happened in Philadelphia.

You bet there is. It's not their fault that you ran out of money in the account. Even for linked accounts to cover the overdraft, there is a transfer fee.

A bank service fee can make your account negative. Whether or not they will assess an additional "overdraft fee" depends on the bank's policies and applicable laws in your jurisdiction.

Yes. Banks provide overdraft facilities to customers at a fee. This fee is chargeable on a yearly basis and the bank has the right to deduct the amount from your bank account every year. If you fail to pay the fee, the bank also has the right to cancel your overdraft facility.

Lewiston State Bank does not offer an alert when an account is overdrawn. An overdraft fee is simply applied to the account. They do, however, offer an overdraft protection service to ensure this does not happen.

There is not a single place to compare business overdraft. The best place is to look at local banks and credit unions. Many offer, for a fee, overdraft protection. Also, many banks will offer better rates and services for customers with multiple types of accounts and current customers.

No. Having overdraft protection does just that...protects you from having adverse credit and helps you maintain a good relationship with your bank.

You're only charged ONCE per overdraft, not daily. And most banks charge $35 per overdraft.

If you have overdraft protection, nothing. Otherwise they will charge you a fee for it initially and then charge you on a daily basis until you balance your account.

You may be charged an overdraft fee.

The main advantage of having overdraft protection is that if you accidently go over your available funds it will cover the cost with no additional fees. The main disadvantage is that you may find yourself abusing the overdraft protection to get things you do not have enough money for.

The primary source of fee income for small banks comes from overdraft fees. Most banks charge an average of $25 to $35 per overdraft.

When you go to take out money and not really knowing the contents of your bank account and lets say you need $40 and you have $38, the bank will let you take it out if you don't have overdraft protection. But, they will charge you (depending on what bank you have) an overdraft fee from $5-35. Since you only had 38 you will be negative $2. The bank will give you till the end of the day to become back positive and if you fail to do so, then they will charge you the overdraft fee PLUS the extra $2, in this example.

Having overdraft protection on your account helps you avoid excessive fees. When the money isn't in your main account, your overdraft account will protect you by providing the money for the charges.

You don't actually repay and overdraft fee. When your account becomes negative the overdraft fee is then taken out adding to the original negative amount. In order for the bank to allow you to cash checks against your account or even keep the account you have to make a deposit to make the account good. When making the deposit that's when you essentially pay back the overdraft. For example if your account was in the negative $20.00 you are then hit with and overdraft fee commonly $35.00 so to make the account good and to use it you have to deposit at least $55.00

Yes if you refer 'negative money' to overdraft. Some new forms of debit cards have the overdraft function but cost you a fee which a credit card does not within its overdraft limit

Many accounts have an overdraft, meaning you can withdraw more than you have, but which means your balance goes into the negative though, ie, you're now borrowing money from the bank. If you have overdraft on your account, you can withdraw up to the amount of overdraft protection you have. If you do not have overdraft protection, you can withdraw only up to the actual amount you have in your account.

Yes. Overdraft is like an advance where you take cash from your overdraft account (even though you do not have equivalent bank balance) and then you repay the money to the bank once you have raised enough funding to repay the same. The bank would charge you an overdraft fee + interest for the money you borrowed from them

According to Consumer Reports, the median overdraft charge by banks is $35 per item. This would apply to all transactions, checks, ATM withdraws, debit card purchases or any other form of debit to your account. Occasionally, if this is the first overdraft you have had, the bank may issue a one-time waiver. If you are concerned about overdraft charges, your bank also may offer optional overdraft protection which comes with an additional fee.

It would depend on which card you have and the policy governing that card, but in most cases the answer would be yes and you would likely be charged a hefty overdraft fee.

If you have a checking account, you may have what is called overdraft protection. That means that if you write a check for more money than you have in your account, the bank lends you the additional money you need to cover the excess. If you have 10 dollars in your account and you write a check for 25 dollars, you have an overdraft of 15 dollars. The bank lends you 15 dollars to cover the amount that you do not have. The bank has a fee for lending you that money. That charge is called an overdraft fee. It is good. Your are not bouncing checks. You are not going to jail for bouncing checks. Still, you used the word fees which is plural. If you are writing a number of checks and are constantly getting hit with overdraft fees, you might find a different way of paying for things. Bitcoin is a way to avoid these fees, bit. ly/btcrefs

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