Checking Account with No NSF Fees – How to Find

There is a little myth about banking that we all carry around in our heads. It goes something like this: if you are careful, take your time, and pay close attention, you will never overdraw your checking account, thereby incurring NSF (non-sufficient fund) fees.

If you have ever complained to someone you know about having been charged an NSF fee on your bank statement, you will hear their version of this myth or see it in their eyes. The person, who may care a lot about you, will still be a bit condescending. It’s like they are thinking, “Well, personally, I am very careful about how I conduct my banking, so I almost never get charged an overdraft fee.”

Unfortunately, this is just that: a myth. That is because, even the most careful, upstanding “banking citizens” among us can be known to incur an NSF (or overdraft) fee now and then.

Reasons It Is So Easy To Incur An NSF Fee

There are multiple reasons why it is so easy to get non-sufficient funds charges on your account, including:

1. Online bank statements that show your current balance can be misleading. For example, many leading banks show two balanced: posted and available. And, sometimes your current balance actually does not reflected un-cashed checks – even those that show as having been “paid” in your online bill paying area.
2. Expenses and income can be unpredictable. Even if you have a steady paycheck or other income source, it can be difficult to predict your expenses each month. Even the best budgeters amongst us can miss things.
3. Debit card charges will be cleared by your bank – even if your balance is zero. Debit cards are set up to clear pending charges, even on a zero-balance account. That means you could make 5 charges on an empty account in one day and your bank will allow the purchase each time – and allow the fees to pile up.

The Solution: A Checking Account With No NSF Fees

The best way to avoid NSF fees is to switch to a bank that does not charge them. While about 80%-90% of banks do charge overdraft fees, some do not. These banks will never charge you an overdraft fee – even if you overdraw your account.

How To Find A No-NSF Fees Bank

Here are the steps to follow:

1. Make a list of at least 5 no-overdraft-fee banks.
2. Cross off of your list any that are not FDIC-insured.
3. Remove any that do not offer you access to nationwide ATMs.

Finally, before applying, scan the bank’s website to make sure you understand the terms and conditions to make sure you are comfortable with them. Then, apply!