How to Drop Your Overdraft Charges
An overdraft occurs when a check is presented against a checking account that has insufficient funds. The penalty for this action is an automatic "overdraft fee." A single, isolated instance of "bouncing" a check is an expensive experience. In addition to the financial institution's fee — typically $35 or higher — the account holder must also forfeit a similar amount to the business to which the check was issued as payment. These fees can have a snowball effect. To limit the damage, you must act quickly.
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Things You'll Need
- Bank Statement
- Receipts
- Good Standing with Your Bank
- Your Branch's Phone Number
Instructions
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Stop all spending from the account as soon as you become aware that an overdraft fee has been debited from your account.
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Contact — by phone or in person — the financial institution branch office with which you have the account as soon as possible. Ask to speak with an account manager.
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Acknowledge the error and request that the account manager waive the overdraft fee. Some financial institutions allow for the waiver of a specified number of penalties within a specified period — one in a period of 12 months, for example.
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4
Deposit enough money to cover all checks that have not yet been presented for payment.
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Tips & Warnings
The best overdraft charge is the one that never happened. Good account management will guarantee that you will never spend money you do not own. There are articles elsewhere on the site that discuss how to manage money, form a budget, or balance a checkbook. Knowing how to do these tasks gives you control over your money and avoids overdraft situations.
Ask about overdraft protection. There are different types, but they all prevent going into the negative.
If you are looking to close your account and open a new one at a later time, consider searching for banks that have no overdraft fees.
