Overdraft is a situation where a bank account holder has insufficient funds in their account to cover a purchase or withdrawal. Overdraft fees are charges that banks can levy on customers for using more than the amount in their account. Many users don’t know that they can waive overdraft fees. First, One must understand the meaning of Overdraft and Overdraft Fees. Overdraft is when you don’t have enough money in your checking account to cover what you spend. If you spend more than your balance, your bank might charge you an “overdraft fee”. That means if you have $2,000 in your checking account and you spend $3,000, your bank might charge you a $30 overdraft fee. But there’s something you can do to avoid these fees – and even get some money back if they happen: ask your bank if it offers “overdraft protection”. That means if your balance falls below a certain level (usually around $1,000), your bank will stop charging overdraft fees so long as there’s enough money in your account to cover any future transactions. So if you ever find yourself with an overage – or just want to avoid those pesky fees altogether – ask your bank about its over draft protection program! ..
What Is An Overdraft?
When a user swipes his card or writes a check/s for an amount more than the deposited balance in his bank account to pay for certain transaction/s, that is referred to as overdrawing from your account. Overdraft is like lending of money by a bank to an account holder.
What Are Overdraft Fees?
Banks charge overdraft fees when the account balance falls to zero. However, some banks only charge such fees when the account balance falls to -$5.00.
One Can Waive His Overdraft Fees, How? By Using The Following Steps:
Contact the agents or customer service line number on your debit card or credit card to ask them to waive overdraft fees.
Dear Bank, I am writing to ask for your help. I have been a loyal customer of your bank for a while now, and I have never had an overdraft issue before. However, recently my account has been overcharged by $xx due to a delay in my deposit. This charge landed sooner than I expected, and it has caused me a lot of inconvenience. I would really appreciate if you could waive this overdraft fee so that I can continue using your bank without any further issues. Thank you for your time. ..
If the agent says he is not authorized to work on your request, that means it is not under his control. However, in some rare cases, some agents are vindictive and will not work for your request because of their intentions. In such a case, ask for a talk with another person and communicate your issue with the concerned person. ..
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Recently, an economic recession due to the Covid-19 pandemic has arisen, leading various banks to waive off overdraft fees of their customers. There are some banks that don’t charge overdraft fees, which are those banks? Banks have been waiving off overdraft fees for their customers in order to try and help them during this difficult time. However, there are still some banks that do not charge overdraft fees, which is great news for those who may need them. ..
Are There Any Banks That Don’t Charge Overdraft Fees?
Some banks charge low or zero overdraft fees for their customers. The list of such banks is as follows: Some banks charge low or zero overdraft fees for their customers. This means that if a customer’s account falls below a certain balance, the bank will not charge them an overdraft fee. This list includes some of the most popular banks in the United States. ..
Alliant Credit Union will no longer charge overdraft fees. This credit union provides a program called the Courtesy Pay program. To qualify for the program, One must deposit $600 within the past 30 days. Under this program, Alliant Credit Union completes the transactions which otherwise would have failed due to the insufficient balance.
In the Covid-19 pandemic, Ally bank was one of those banks that eliminated Overdraft fees for their customers. Later on, These changes have been made permanent by the Ally Bank. No Overdraft Fees have to pay for the Overdraft up to $250 to the bank customers.
Bank of America, Capital One Financial Corporation, etc. do not charge their customers for overdraft fees.
There are a few things you can do to avoid overdraft fees in the first place. First, always have an emergency fund set up so that you can cover your unexpected expenses. Second, be sure to pay your bills on time and use a credit card that offers low interest rates. Finally, be sure to keep track of your account activity and make sure you are getting the most out of your credit cards.
If you have a checking account with a bank, be sure to link it to a savings account or credit card so that your bank can pay for transactions that overdraw your checking account. Many banks provide such services for some charges.
One way to get bank alerts for mobile banking is to create a new account on a mobile device and use the bank’s online account login.
If you have a mobile phone and are not happy with the overdraft fees that your bank charges, there is an option you can take to avoid them. By confirming your mobile phone number with your bank, you will be opted in to receive text messages when your account balance is about to reach zero. This way, you will know ahead of time and can plan for any necessary expenses. ..
