“`html

Understanding and Managing Overdraft Fees

Despite our best efforts, it’s possible to spend more money than you have available in your checking account. Whether it’s an automatic renewal of an annual subscription you forgot about or a delayed paycheck, overdrawing on your bank account can happen to anyone. This inconvenience often comes with an overdraft fee, but fortunately, you may be able to get these fees refunded by contacting your bank’s customer service department.

What Is an Overdraft Fee?

An overdraft fee is a charge imposed by a bank when you make a transaction that exceeds your checking account’s available balance, and the bank covers the difference for you. If multiple transactions settle on the day your account dips into the negative, your bank may charge an overdraft fee for each transaction.

Can You Get Overdraft Fees Waived?

Yes, many financial institutions allow you to get overdraft fees waived, but it may depend on the bank. Here are some steps to get overdraft fees refunded:

• Simply ask for a refund: Contact your bank’s customer support or speak with a bank teller directly and request a refund. Explain the reason for your request, such as a delayed deposit or an unusually large autopayment.
• Go up the authority chain: If a customer service agent cannot waive the fee, ask to speak with a supervisor or manager who can.
• Consider switching banks: If your bank is unwilling to waive the fee, consider switching to another bank with a less stringent overdraft fee policy or one that doesn’t charge overdraft fees at all.

How Much Do Overdraft Fees Cost?

According to the Federal Deposit Insurance Corporation (FDIC), overdraft fees average around $30 per transaction. Here are the overdraft fees from some well-known banks:

• Alliant Credit Union: No overdraft fees
• Ally Bank: No overdraft fees
• Axos: No overdraft fee
• Capital One: No overdraft fee
• Chase: $34 per charge if your account is overdrawn more than $50 at the end of the business day
• Citi: No overdraft fees
• Navy Federal Credit Union: $20 per charge if the account is overdrawn over $15 at the end of the business day
• Wells Fargo: No overdraft fee for its Clear Access Banking checking account and $35 for other checking accounts

How to Avoid Overdraft Fees

To avoid overdraft charges, consider the following tips:

• Monitor your bank account balance: Regularly check your account balance through your mobile banking app or computer to stay up-to-date and avoid unnecessary fees.
• Opt out of overdraft protection: Federal regulations allow you to opt out of overdraft protection at any time. Without it, your debit card may be declined if there isn’t enough money in your account to cover a transaction, and you won’t incur an overdraft fee.
• Sign up for alerts: If your bank offers them, sign up for low balance alerts to receive messages whenever your account balance falls below a specific threshold.
• Link to another account: Check if your bank allows you to link an additional account to your checking account to help prevent overdrafts.
• Choose a fee-friendly bank: If you receive overdraft fees often, consider switching to another bank that doesn’t charge overdraft fees.

Reap the Benefits of Multiple Checking Accounts

If you prefer the convenience or other features of your current bank despite the hefty overdraft fees, consider opening another checking account to take advantage of features not offered by your current bank. For example, you could designate one online account for interest-earning and paying bills and another with a local credit union or traditional bank for accessible cash or in-person service.

If you decide to switch banks or open a separate account, compare each bank’s interest rates, minimum balance requirements, fees, and other features to find the checking account that best suits your financial needs.

For any mortgage-related needs, feel free to call O1ne Mortgage at 213-732-3074. We’re here to help you with confidence and expertise.

“`