The Chicago native wrote a check for his car loan, but he didn't have enough money in his account to cover the check and he didn't have overdraft protection. That was a year ago. Also, immediately deduct from the checking account balance for automated teller machine withdrawals, bank fees and debit card purchases at stores. Consumers should also assess their spending habits and budgeting skills. Banks and credit unions charge from 10 percent to 18 percent for overdrafts.
Some financial institutions charge a fee for each transaction in addition to regular interest rates.
Some make overdraft advances either for the exact amount or in multiples. There might be a monthly fee in addition to interest. Find out if deposits to your checking account automatically apply to an overdraft balance or if you must specifically repay the loan. Overdraft protection can be a preventive service, but the key when it comes to budgeting is to use discipline. We should always know how much money is in our checking account and who's been paid.