Monday, March 12, 2012

Overdraft Protection

The question is should I have overdraft protection from my bank? Thanks to the Electronic Fund Transfer Act bank customers must now choose whether or not they want to opt into overdraft protection.

I know you have received countless literature from your bank explaining that overdraft protection is there to protect you. I think you should take this with a grain of salt. You would probably better off without it.

The fees connected to overdraft protection are not cheap they generally run about $35 per transaction. For example if you overdraft your account you will have to pay the bank $35 plus the actual amount of the overdraft. On the other hand if you do not have this protection the bank will simply return the payment to the creditor. I know this can be embarrassing but it will still save you $35 the bank was going to charge you for making the payment. The decision is up to you just compair the pros and cons as how it will affect you.

I Disclose:

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