Find a Bank with No Overdraft Fees – What to Look For

“Another overdraft fee on my statement?!” The words echo across the house/office/coffee shop/airport lounge. “How could they do this to me?” Familiar words, aren’t they?

Of course, a purist will tell you that any overdraft fees that a banking customer has to pay is strictly their own fault. And, in a way that is true. However, it is an unarguable fact that since the widespread adoption of overdraft protection programs less than a decade ago, consumers on the whole are paying more in bank fees than they ever have. While most checking accounts are now “free,” the actual cost of having a checking account runs into the hundreds of dollars annually for many, many bank customers.

In fact, banks earn about $25 billion in overdraft fees annually in the U.S. alone! The overdraft protection program game is an extremely lucrative one for banks, and they want to keep you in that game.

Fortunately, there are now a handful of banks coming onto the scene that do not charge fees – even if you overdraft your account. Here’s how it works:

1. You apply and get accepted for your new checking account. Some accounts involve a small monthly checking fee, but you will save money overall by paying a small, regular fee to their bank each month rather than unpredictable and painful overdraft fees. No surprises!
2. If you write a check or make a debit/credit charge that exceeds the amount still in your checking account, the bank will cover your payment – just like with a regular overdraft protection account.
3. HOWEVER, the bank will NOT charge you an overdraft fee for doing so. (Wow – that’s refreshing). There’s no limit to the number of overdrafts you can make, either. You just have to make sure that total overdraft amount at any one time does not exceed a certain, pre-determined figure.

If you want to find a bank with no overdraft fees, here are some tips:

1. Make sure that the bank is FDIC-insured. This means that, if your bank were to shut down and close its doors for any reason, you can still get your deposit amount back.
2. Find a bank that allows you to conduct banking transactions online. This means your having the ability to login and check your balance, make transfers, and pay your bills from the comfort of your home or office.
3. Make sure that the bank you select gives you access to a national ATM network. It’s important that you are able to get your hands on your cash whenever you need it.

Overdrafts are a reality for many people these days, and they are costing consumers collectively billions of dollars each year. There is no reason why anyone should have to pay these fees when there are banks that do not charge overdraft fees – even when an overdraft occurs. Once you gain access to a list of no overdraft fee banks, make sure you select one that meets the criteria outlined above to ensure the best banking experience possible.