the Price of Overdraft Fees

The overdraft fee is charged when a check is presented to the issuing bank there are not enough funds in the checking account. The fee is not broken down into materials and gratuities, although the price stated is only for a first instance. For succeeding overdrafts, the bank can charge the account holder $35.00 per check. Some bank calls or email the account holder regarding this concern, to give them the chance to correct the matter, before it goes to the attention of the person redeeming/cashing the check. However, in most instances, the account holder is not aware of the matter until the person who has been issued the check complains to the issuer.

The bank was courteous and helpful and advised me to deposit the required amount to my checking account as soon as possible. I cannot say for sure where the fees were applied so I am not certain whether it was worth it or not. I checked with other banking institutions and I know that the fees are almost standard.

While it is certainly not a pleasant situation, it is very easy to get into an overdraft situation. After this episode, I was advised by the bank that it may be a good idea to open a credit card with them and to attach it to my checking account so in case it happens, my bank can just access my ready line of credit to cover for the overdraft. It makes sense really.