Take Charge of Your Balance:
Avoid Overdraft and NSF Fees
It’s important to understand the difference between overdraft fees and NSF (non-sufficient funds) fees, and how to avoid both.
Understanding the Difference
When there is not enough money in your account to cover a payment, one of two things can happen:
- NSF Fee (Non-Sufficient Funds): The bank declines a payment for which your account did not have sufficient funds to cover, and you are charged a fee. The merchant may also charge a returned payment fee.
- Overdraft Fee: Your payment goes through, but your account balance becomes negative, and you are charged an overdraft fee. You will also need to repay the amount overdrawn.
These fees occur with:
- Debit card purchases
- Automatic payments
- Paper checks
Ways to Avoid Fees
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Tip
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Why It Helps
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Track your spending
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Check your balance often so you know where you started.
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Use online and mobile banking
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Set up alerts when your balance falls below a certain amount.
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Set up direct deposit
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Your paycheck arrives faster, and you know exactly when your money is available.
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Keep a little extra in your account
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Having a balance cushion can prevent small miscalculations from triggering overdrafts.
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Be cautious with debit card holds
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Some businesses (like gas stations or hotels) may place temporary holds for more than the purchase amount.
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Link your accounts
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If your checking account gets low, money can transfer automatically, usually with a smaller fee than an overdraft fee.
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If you share an account, communicate
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Make sure everyone using the account knows what’s been spent.
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Act quickly
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If you overdraw your account, deposit money as soon as you can to minimize fees.
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We’re Here to Help
Both overdraft and NSF fees can be costly. If you would like help managing your accounts or understanding the tools available to help you avoid fees, reach out to your local branch for assistance.