Overdrafting?

Question

So I just overdrafted on my free checking account. There's the cost of the item and the overdraft fee (which is incredibly outrageous) which shows up on my online statement.

I get my paycheck tomorrow, which will clear immediately with my bank. Will I be charged again another fee for the second day, or is it a one-time fee? And why is the fee so high for a music cd that was only $12?

Answer 1

That might change from bank to bank, but anyway, most overdrafts are based on purchases made. If you don't have the money and you keep taking money out of the bank, they will charge you a overdraft fee.

Check with your bank about overdraft protection. My overdraft fee was $32.00 for every purchase done without any cash on account and with the protection it diminish to $5.00 one time fee (still have a fee but considered to before is way better).

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Answer 2

It depends on the bank, my bank has an upfront overdraft fee of 35 dollars and then 5 dollars each day that it is overdrawn.  My husband's bank just charges 25 dollars per check.  Sometimes, if you have been with them a while and don't make a habit of overdrawing your account then they will waive the first fee and let you by with a "warning" not to do it again.

The fees are outrageous, I went over drawn by honest mistake by 97 cents once and was charged 35 dollars over it...it is just another way for the banks to make money off of you.

Answer 3

It depends what time you make your deposit.  If your bank has a cut off time and you make your deposit before that time you will not get charged.  If you make it after you can expect to pay the per day fee of being in the negative.

Banks charge you the same fee every time you write a check for money you don't have regardless of the amount of the check.  In some cases a bank will not charge if the check is less than $5.00.