Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [overdraft]

28 questions
23
votes
7 answers

Why should I not keep my checking account at $0 and use overdraft protection?

My savings account earns interest; my checking account does not. I have overdraft protection, so if I overdraw the checking account, the money comes out of the savings account. It seems like I could earn interest on all my money by keeping it all in…
Someone
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21
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4 answers

Why do banks insist on allowing transactions without sufficient funds?

Specifically, to a checking account. I have not heard of, in a long time, any bank that will simply decline a charge if there isn't sufficient money. Either by default or even at the customer's specific request. Instead, they let the account go…
iPherian
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19
votes
2 answers

Can a bank make overdraft protection mandatory?

Recently I spoke with a bank about opening an account. As usual, overdraft protection was mentioned. The banker informed me that the account has overdraft protection and it cannot be disabled. When I asked the banker to clarify, they informed me…
Jessica
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16
votes
6 answers

Using a credit card to clear my overdraft

I'm currently into £2000 overdraft with Santander. It was entirely interest free while I was a student. Sadly those boozy days are behind me and with this new responsibility comes a charge for the privilege of being in debt. It costs me a pound per…
Nanor
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13
votes
3 answers

What happens when PayPal overdrafts a checking account (with an ample backup funding source available)?

I recently made a large purchase with PayPal two days ago, but didn't realize that it would try billing my checking account with the whole amount rather than splitting it between my checking account (primary) and my credit card (backup funding…
Joey Adams
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11
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6 answers

Is a debit card dangerous for an account with low balance and no overdraft protection?

I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account. I've heard that using a debit card is dangerous. Given my…
Ken - Enough about Monica
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8
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3 answers

Overdraft Protection - Is this legal?

I recently got an overdraft when I forgot about a pending transaction. That's completely fair and I understand what happened. However, what followed concerns me deeply. I had OD protection on my account. When my checking account went negative, OD…
Jacob Barnes
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6
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2 answers

Legal to apply dormant account fees until the account overdrafts?

Is it legal in the USA for a bank to assess and apply dormant account fees until the account overdrafts and goes negative? This is happening to a friend of mine and it doesn't seem like it should be legal, but I can't find any specific laws or…
Alan Krueger
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4
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3 answers

Consequences of having an ACH payment declined?

Apart from embarrassment, is there any other consequence to having an ACH transaction declined (like an automatic payment of some sort)? Is it treated the same as a check bouncing? Does it affect your credit negatively (leaving aside potentially…
Jay
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4
votes
2 answers

How quickly are the funds from a bank deposit available via my debit card or a check?

I deposited a cashier's check into my account at 8AM, the account had nearly nothing in it. If I were to use the "credit" option on my debit card at the grocery store would I overdraw my account? Do the "credit" transactions on my debit card go…
Stanfrancisco
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4
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1 answer

What do new Overdraft rules for U.S. banks mean for transactions, when they go into effect July 1, 2010?

The rules will affect ATM withdrawals and debit card transactions, and are meant to protect consumers with an opt-in option. What does this mean?
Nat_Rea
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3
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2 answers

What leverage do I have to negogiate reduced overdraft fees?

Through a comedy of errors involving other financial institution, my checking account at a credit union went negative, and I was charged $200 in overdraft fees. I don't think I'm responsible for the errors, but the credit union is unwilling to…
Merchako
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2
votes
1 answer

Hotel, double charges, overdraft and bank interest

Situation: During check-in at a hotel, I give them my (debit) card, do paperwork (fill in forms, sign documents and so on...). They hold some funds ($100 for example). Finally, during check-out, something goes wrong and they tell me, they are unable…
dimanne
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2
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3 answers

Paying off Overdraft first or Credit Card

I have accumulated 18 000 in debt between my Credit Card (-8000, interest=16%) and Cheque Account Over Draft (-10 000, interest=15%). I make 10 000 per month, and I have around 3000 after all my needs to contribute to the credit repayment. I would…
user19806
2
votes
1 answer

Do online billpay/banking force NSFs (Not Sufficient Funds) when they can?

When online banking and payment systems first came out, I remember they used to have a lot of issues with giving indicators (visual/email payment confirmation) that a payment was 'locked in', but then due to delays/misreading etc. would end up…
Tipan777
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