the Price of Overdraft Protection

One of the reasons I got a credit card from my main bank was because they told me that it was a good idea to have a line of credit or overdraft protection for those times when you forget to balance your checkbook or issue a check without checking your balance. According to the bank, in case of a check issued over my checking account balance, the bank will honor the check/checks and at the end of the day, will add up all the overdrafts and deduct the exact amount from my credit card plus $10 for processing fee. I can have more than 1 overdraft check and still pay the same amount.

It is a very handy tool and back-up, especially for those who lead very busy lifestyles. While I enjoy balancing my checkbook, I know not a lot of people do. Even then, there are times when I forget to pay some bills and get into trouble paying a lot of late fees and penalties. I think this is much better than paying the regular overdraft fee of $22.00 for the first instance and $35 for each instance of overdraft thereafter.

I suggest you shop around banks, call them about their bank fees. While the rates are pretty standard, some banks will have lower overdraft protection fees to entice their customers to access the ready line of credit/ credit card which earns them interest.