Have you ever overdrawn your account? If you have, you’re not alone. According to the Consumer Financial Protection Bureau on average 30% of American’s overdraw their accounts each year. Of those, 8% do so more than 10 times a year and pay 74% (or $380) of those overdraft fees each year. According to the following website, these fees can range from $10 – $40 with the average being $35. My advice to you is to always know your starting balance and keep track of your spending. Whether you are using online banking, a checkbook ledger, or another form to track your spending; knowing what is going on in your checkbook will put you ahead of the game.
At New Dimensions, we have some great tips to help you save on those overdraft fees! Sign up for online banking and take advantage of all the benefits we have to offer. Through online banking, you can check your balance, track your transactions, and did you know that our online banking also has an alert feature! This feature allows you to receive an email or text message based on how you set up the alert. This alert allows you to set a minimum and a maximum balance threshold, helping you keep track of your balance….and alerting you if you go under a certain amount. How great is that?
Another way to avoid those overdraft fees is to set up overdraft protection. We have a couple of different options to help prevent paying those overdraft fees. The first option is a line of credit that can be attached to your account and will protect you if you overdraw. The second option is attaching your savings account to your checking account to cover any overdrafts. Please see one of our loan officers or one of our member service representatives for details.
Lastly, having an effective household budget in place can also help avoid those overdraft fees. Budgeting is a great way to allocate funds, then pay those expenses when the time comes. Knowing each month that there is money allocated to pay for expenses, as well as putting a little away in savings if you can, is a peace of mind you will be thankful for. Let me help you craft your budget into a financial plan you can live with while helping to prevent those overdraft fees. Contact me today at Creynolds@newdimensionsfcu.com or (207) 872-2771.