Overdraft fees are getting cheaper, but are still used by most banks | Techy Kings

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InvestigateTV – Despite the trend toward more consumer-friendly overdraft policies, a recent study by Bankrate.com found that 96% of banks charge overdraft fees and 87% also charge non-sufficient funds (NSF) fees.

Greg McBride, chief financial analyst for Bankrate.com, said the average overdraft fee was $29.80, down 11% from last year’s record high of $33.58.

McBride explained that the downward trend is likely because banking fees are being scrutinized by regulatory and legislative bodies.” These are fees that have been in the regulatory and legislative crosshairs for a while, McBride said. “So, banks realize that they better embrace change.” He has some tips for users to avoid these fees:

Check your balance before you spend money: Make sure you have enough to cover the transaction.

Set up email or text alerts for low balances: You can transfer money between accounts before an overdraft occurs

Set up a link between your checking and savings accounts: This feature will cover any shortfall with your own funds, instead of using bank money.

Some banks will charge a fee to transfer money for you, so check with your financial institution for specific details about your account.

For more information, the website of the Office of the Comptroller of the Currency is filled with articles and advice on banking and financial institutions. They have comprehensive articles on overdraft fees and many other helpful topics available.

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