How Can You Check If You Are Paying Bank Overdraft?

Are you worried you may be paying overdraft fees on your bank account? Overdraft fees can be frustrating and costly, especially if you need to figure out how they’re being charged or how to avoid them. The article goes over bank account with no overdraft fees, how you can check if you are paying overdraft fees and what you can do to avoid them.

Check Your Bank Account Statement

One of the easiest ways to check if you’re paying overdraft fees is to review your bank account statement. Most banks will include overdraft fees as a separate line item on your statement, so it should be easy to spot if you’re being charged.

If you need help accessing your statement, you can do so online through your bank’s website or mobile app. Log in to your account and look for a statement or transaction history section. You can review your recent transactions and see if any overdraft fees have been charged.

Understand How Overdraft Fees Work

To better understand whether you’re paying overdraft fees, it’s important to know how they work. Overdraft fees are typically charged when you purchase or withdraw money from your account and don’t have enough money available to cover the transaction.

For example, if you have $100 in your account and you make a purchase for $120, your bank may charge you an overdraft fee for the $20 difference. In addition, some banks will also charge an additional fee if you continue to make transactions that overdraw your account.

It’s important to note that all banks do not charge overdraft fees. Some banks offer accounts with no overdraft fees, so it’s worth looking into if you want to avoid these charges. SoFi experts suggest, “To activate no-fee Overdraft Coverage, set up direct deposit with your bank account.”

Set Up Account Alerts

To help prevent overdraft fees, you can set up account alerts with your bank. These alerts can be sent to you via email, text, or push notification and can be triggered by various events, such as when your account balance falls below a certain amount or when a large transaction is made.

These alerts can help you stay on top of your account balance and prevent overdraft fees. You can also set up automatic transfers from a linked account to help cover any overdrafts. This can be helpful if you’re worried about accidentally overdrawing your account.

Use Mobile Banking Apps

Mobile banking apps can be valuable tools for avoiding overdraft fees. Many apps now offer real-time updates on your account balance and allow you to track your spending. This can help you stay on top of your account and ensure you have enough money to cover your transactions.

In addition, some apps offer features such as budgeting tools or spending alerts that can help you manage your money more effectively. Using these tools, you can better plan your spending and avoid overdrafting your account.

In summary, there are several ways you can check if you’re paying overdraft fees and take steps to avoid them. You can better manage your money and avoid these costly fees by reviewing your bank account statement, understanding how overdraft fees work, setting up account alerts, and using mobile banking apps. If you’re concerned about overdraft fees, it’s also worth looking into banks that offer accounts with no overdraft fees. With a bit of planning and attention to your spending, you can avoid overdraft fees and keep your bank account in good standing.