Why do bank impose fees and charges on overdrafts?
that's how they make money
No. While most catalogue retailers are not subject to the same regulatory framework as are banks, those retailers are limited in the maximum interest rates they are allowed to impose on customers. Fees, however, are not limited with the catalogue scheme because catalog shopping is not the only way to go shopping and, therefore, those fees are considered "convenience" fees for the catalogue providing you with the service.
I have overdraft protection, so my bank covers overdrafts instead of bouncing checks. This is useful because I have several auto-pay accounts, and I don't keep track of them well. However, overdrafts are charged to me at a rate of $30 a pop- if I had 120 overdrafts, that would be $3600. Just how disorganized is your checkbook? H-m-m-m?
Yes. The bank has the rights to deduct any fees or transaction charges from the cash balance you have in your account in return for the services availed by you. For Ex: If I do a NEFT funds transfer from my HDFC account to my ICICI Account, HDFC charges me Rs. 5/- as fee for that and deducts it from my account a day or two after I do the NEFT transaction.
* Location: Do they have branches in areas frequented by you and your spouse? * Visit each institution and evaluate customer service. * Do they offer the type of account(s) you require? * Are the hours of operation convenient? * Do they have ATMs ? * Do they offer Internet banking? Compare the rates, fees and service charges on the following: * bounced check fees * safety deposit box charges * ATM charges * checking…
Overdraft fees incur disadvantages onto both banking consumers and originating firms themselves. Overdrafts can represent a form of usury against economically at risk populations already struggling with meager financial resources. For them incurring overdraft fees on credit/debit cards can serious impact their budgets. Overdrafts represent a liabilities risk to firms as the create risky debt hedging by offering what is a form of predatory loans by authorizing transactions above account availabilities.