Overdraft Programs

Some banks offer overdraft programs which may charge up to $25 or more to automatically cover purchases or transactions when you don't have enough money in your bank account. You can avoid overdraft charges by recording all of your account transactions, knowing your current balance, and making sure you have enough money in your account to cover purchases, withdrawals and banking fees. However, if you still tend to have overdrafts, you can try to minimize the fees.

You can ask your bank about the lower-cost alternatives. One option may be to pre-arrange for an automatic transfer from your savings account to your checking account when the balance falls below a certain amount. Another may be to linkyour checking account to an overdraft line of credit, so a shortfall in your account would trigger an automatic loan that may cost less than incurring overdraft fees.

Consumers also have a choice in how they want their bank to handle overdrafts caused by debit card transactions.

Many banks also offer e-mail and text message alerts for customers, so ask

the bank if it can send you an alert when your account balance gets low.

Source: FDIC