Protecting your debit card from Bank Overdraft Fees

Debit cards are easy and convenient. But they can also be very expensive as banks increase their overdraft fees. Learn how to avoid costly penalties.

Protecting your debit card from Bank Overdraft Fees

A $5 latte could end up costing you $35 if you don’t watch your debit card expenses carefully. Basically, a debit card works like a check. Except every time you use it, you’re immediately taking money out of your account. That’s why when you overdraw, it’s like bouncing a check, only worse. Because unlike checks, you probably don’t keep a record of every debit card purchase. And banks charge penalties of up to $30 for each item! You might make a bunch of small purchases before you realize you’ve spent more than you have. Then that $30-fee doubles, triples or even quadruples in a matter of hours!

So before you put that soda or coffee purchase on a debit card, make sure you have enough money in your account to cover it. Or you can talk to your bank about ways to avoid overdraft fees: