Have you been caught up in the nationwide frustration over outrageous overdraft fees? Or, maybe you possess just noticed one-too-many fees on your bank affidavit and are getting more than a little fed up.
Either way, you may feel that it is time to rearrange to a denigrate overdraft fee bank. And that makes good sense. After all, the range of fees that banks can charge is sooner wide, from $10 to $35. Why not find a bank that charges less in fees for each instance of an overdraft?
Bank Fees Have Gotten Absent of Control
There is no question that fees beget gotten out of control. Banks collectively earn over $29 billion each year off of their customers in overdraft fees in the United States alone. Whereas these fees used to be merely in village to penalize customers for overdrawing their accounts on occasion, the fees have turned into big business for banks.
In fact, these fees are now regarded as an official profit center for banks. That means that banks actually count on these fees as a way to make significant amounts about income. So, how did the fee case get to this point?
How Overdraft Policies are Stacked Against the Customer
It all comes back to something called overdraft protection programs. Starting about 10 years ago, these programs became increasingly popular for banks. The programs are designed to fend consumers from writing bad checks or making charges on their debit or credit cards that are not properly backed up by a checking tale balance.
However, some believe that the programs are misleading (and costly) to customers in two ways:
a. the programs have traditionally been opt-out in nature, which means customers were automatically enrolled in the programs upon checking account sign up (often with truly little explanation about how the programs actually work).
b. with overdraft protection, many customers do not realize that they can make an unlimited number of debit card charges even when their accounts have a zero balance. This means that one circadian of shopping could espouse someone to unknowingly assume $100 or more in fees.
Low Overdraft Fees Banks and Other Alternatives
Tired concerning paying outrageous bank fees? Here are 3 insights on alternative to paying high overdraft fees:
1. Some banks and credit unions charge comparatively low overdraft fees: You can search for a stack or credit union that still charges these fees but that charges less per transaction (say, $20 instead of $30 apiece overdraft).
2. Still lower fees can surcharge you $100 or more a month in fees: Still, if you are someone who gets dinged with these fees a few times each month, even the lower fees could cost you well over $100/month.
3. Another alternative is to switch to a no-overdraft fee bank: There are many well-established banks that promise to never charge you a penny in this type of bank fees – even if you overdraw your account. Imagine having a checking account at a bank like this: you would never pay a penny in overdraft fees again.
If you are all in concerning paying high overdraft fees, try these alternatives and activate saving money right away.