RateAPY

$25 Cup of Coffee?

Posted by: RateAPY Bank Rates News
November 24th, 2009

Don’t worry, inflation hasn’t gone ballistic overnight. A cup of coffee still costs about $2. However, if your checking account has no money in it–possibly as a result of the recession–your bank may approve your debit card purchase and then charge you a $23 overdraft fee.

Federal Reserve Says Customers Must Consent

The Federal Reserve responded to consumer groups and congressional pressure this month by making a new rule. Banks must allow checking account customers to opt out of automatic debit transaction approvals when there is no money in the account.

3 Tips to Avoid Overdraft Fees

• Open a savings account and link it to your checking account for overdraft protection.
• If your credit card was issued by the bank where you have checking and savings accounts, link your credit card for overdraft protection. Make sure you understand what interest rates and fees may still apply, however.
• Use online services to stay on top of your current available balance and take steps never to exceed that amount.