How to Prevent Overdraft Bounced Check Fees
- 1). Opt out of overdraft protection on your bank account. In August 2010, the Federal Reserve changed banking laws to force banks to allow customers to opt out of overdraft protection. The new laws also prevent customers from being signed up for overdraft protection without their knowledge, notes Bankrate. Call your bank and say you want to remove overdraft protection from your accounts.
- 2). Find less expensive alternatives for handling potential overdrafts. Link a savings account or credit card to your bank account for times in which your account is unexpectedly insufficiently funded, suggests the Center for Responsible Lending. Use a payday lender as a last resort if you're concerned your checks may bounce. Even payday lenders' high interest rates are cheaper than the average cost of overdraft fees, warns Bankrate.
- 3). Keep careful track of your account balance. Even without overdraft protection, bounced checks fees can be quite costly. Make a habit of writing down every purchase and automated teller machine (ATM) withdrawal to ensure you know exactly how much money you have. This is especially important if your bank makes a mistake reporting your balance, because you will be the one paying for the mistake. Don't forget to include ATM fees and monthly banking fees when you balance your checkbook.
- 4). Allow checks time to clear before you make bill payments. Some banks process payments before deposits, which means your accounts may be overdrafted for insufficient funds the same day your check is deposited. Wait a few days to ensure your deposit has cleared and the funds are available before sending checks.
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