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Questions tagged [overdraft]

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23 votes
7 answers
8k views

Why should I not keep my checking account at $0 and use overdraft protection?

My savings account earns interest; my checking account does not. I have overdraft protection, so if I overdraw the checking account, the money comes out of the savings account. It seems like I could ...
Someone's user avatar
  • 1,417
21 votes
4 answers
5k views

Why do banks insist on allowing transactions without sufficient funds?

Specifically, to a checking account. I have not heard of, in a long time, any bank that will simply decline a charge if there isn't sufficient money. Either by default or even at the customer's ...
iPherian's user avatar
  • 362
19 votes
2 answers
4k views

Can a bank make overdraft protection mandatory?

Recently I spoke with a bank about opening an account. As usual, overdraft protection was mentioned. The banker informed me that the account has overdraft protection and it cannot be disabled. When I ...
Jessica's user avatar
  • 368
16 votes
6 answers
3k views

Using a credit card to clear my overdraft

I'm currently into £2000 overdraft with Santander. It was entirely interest free while I was a student. Sadly those boozy days are behind me and with this new responsibility comes a charge for the ...
Nanor's user avatar
  • 647
13 votes
3 answers
110k views

What happens when PayPal overdrafts a checking account (with an ample backup funding source available)?

I recently made a large purchase with PayPal two days ago, but didn't realize that it would try billing my checking account with the whole amount rather than splitting it between my checking account (...
Joey Adams's user avatar
11 votes
6 answers
5k views

Is a debit card dangerous for an account with low balance and no overdraft protection?

I have a checking account that I keep very little money in. I use a debit card as a credit card at shops, and at the ATM. I have turned off overdraft protection on the checking account. I've heard ...
Ken - Enough about Monica's user avatar
8 votes
3 answers
2k views

Overdraft Protection - Is this legal?

I recently got an overdraft when I forgot about a pending transaction. That's completely fair and I understand what happened. However, what followed concerns me deeply. I had OD protection on my ...
Jacob Barnes's user avatar
6 votes
2 answers
2k views

Legal to apply dormant account fees until the account overdrafts?

Is it legal in the USA for a bank to assess and apply dormant account fees until the account overdrafts and goes negative? This is happening to a friend of mine and it doesn't seem like it should be ...
Alan Krueger's user avatar
4 votes
2 answers
2k views

How quickly are the funds from a bank deposit available via my debit card or a check?

I deposited a cashier's check into my account at 8AM, the account had nearly nothing in it. If I were to use the "credit" option on my debit card at the grocery store would I overdraw my account? Do ...
Stanfrancisco's user avatar
4 votes
3 answers
19k views

Consequences of having an ACH payment declined?

Apart from embarrassment, is there any other consequence to having an ACH transaction declined (like an automatic payment of some sort)? Is it treated the same as a check bouncing? Does it affect ...
Jay's user avatar
  • 1,137
4 votes
1 answer
167 views

What do new Overdraft rules for U.S. banks mean for transactions, when they go into effect July 1, 2010?

The rules will affect ATM withdrawals and debit card transactions, and are meant to protect consumers with an opt-in option. What does this mean?
Nat_Rea's user avatar
  • 8,683
3 votes
2 answers
149 views

What leverage do I have to negogiate reduced overdraft fees?

Through a comedy of errors involving other financial institution, my checking account at a credit union went negative, and I was charged $200 in overdraft fees. I don't think I'm responsible for the ...
Merchako's user avatar
  • 131
2 votes
3 answers
3k views

Paying off Overdraft first or Credit Card

I have accumulated 18 000 in debt between my Credit Card (-8000, interest=16%) and Cheque Account Over Draft (-10 000, interest=15%). I make 10 000 per month, and I have around 3000 after all my needs ...
user avatar
2 votes
1 answer
1k views

Hotel, double charges, overdraft and bank interest

Situation: During check-in at a hotel, I give them my (debit) card, do paperwork (fill in forms, sign documents and so on...). They hold some funds ($100 for example). Finally, during check-out, ...
dimanne's user avatar
  • 121
2 votes
1 answer
182 views

Do online billpay/banking force NSFs (Not Sufficient Funds) when they can?

When online banking and payment systems first came out, I remember they used to have a lot of issues with giving indicators (visual/email payment confirmation) that a payment was 'locked in', but then ...
Tipan777's user avatar
1 vote
1 answer
512 views

What will happen if I deposited a check that was part of a scam and I already spent some of the money?

I deposited a check and spent a 700 before knowing it was a scam and I got lured but my bank account isn’t set up to do overdrafts because I’m still consider a minor what will happen??
Emmy 's user avatar
  • 57
1 vote
1 answer
79 views

Thinking on asking for an overdraft, if I pay the entirety of it next month, how much interest do I have to pay?

So I'm thinking on getting a overdraft in my bank, it says that the interest is 15% annually, however I only need little money to cover something before the end of this month, I can pay that amount in ...
Artemix's user avatar
  • 125
1 vote
1 answer
149 views

Overdraft on students account damages credit rating?

I have a student account with a bank in UK with a overdraft of 500 pounds. Speaking to one of the clerks, he explained to me that the overdraft bears no cost and I can keep my bank account in the red ...
Three Diag's user avatar
1 vote
1 answer
3k views

Can I overdraw my cashapp card?

Can I overdraw my cashapp card if it starts with a positive balance to buy diapers and food and Walmart? I have $1.09 on my card and laid off right now. I have no 211 resources anywhere near my area.
Savannah Diehl's user avatar
1 vote
1 answer
755 views

Does an unused overdraft help or hinder credit score?

Whilst at university, I was given an interest- and fee-free overdraft of £2000. I finished uni a few years ago by now, and the interest- and fee-free deal has now ended. I don't use the overdraft at ...
crazyloonybin's user avatar
0 votes
2 answers
277 views

Open Money Transfer card in my name for family member's debt

My sister and brother in law have a single joint bank account with an arranged overdraft of £3,000 and they are, for all intents and purposes, maxed out on it. This means they are incurring charges of ...
user avatar
0 votes
2 answers
554 views

Do overdrafts on a checking account affect credit score?

I unfortunately had an overdraft on my checking account and my bank transferred money from a reserve line. Will this affect my credit score? Or is it independent from that?
Thunderforge's user avatar
  • 1,345
0 votes
2 answers
114 views

Current Account without Savings Account

Is it possible to have a current account without a savings account? If it is possible, then if the client withdrew more than of its balance, how will the overdraft occurs?
Crabby's user avatar
  • 1
0 votes
1 answer
2k views

How does the rental company charge an empty debit/credit card with €0 credit limit? (Transferwise)

Can anyone help me to figure out which way a rental company uses to bypass the credit/debit card limits up to several thousand of euros. It happened the first time around 5 days after returning a ...
user3606329's user avatar
0 votes
2 answers
168 views

Bill pay sent multiple unauthorized house payments and caused an account overdraw. What should we do?

We have bill pay with Bank of America. We set up house payment for 12/02/19 which they paid. They also paid it again on 12/03/19 causing insufficient funds and an overdraft fee to our account as we ...
Karen Shoults's user avatar
0 votes
1 answer
207 views

Where does money come from when adding to apple account?

not super sure if this is the right place to ask the question, but I recently added $1 to my apple account balance as a test. I originally thought nothing would happen, or it would tell me something ...
user131436's user avatar
0 votes
2 answers
279 views

How much risk is a debit card, if stolen?

I have a debit card that I share with my spouse. I keep just a small amount in the account linked to it. She was overcharged accidentally, and I noticed a negative balance on the card. I ...
Ken - Enough about Monica's user avatar
0 votes
0 answers
35 views

Difference Between Opting In and Out of Courtesy Overdrafts

Let's say you had $50 as a balance in your savings account. You go out and buy something that costs $250. So, your balance is now 50 - 250 = - 200 dollars. What is the difference between Opting In ...
W. G.'s user avatar
  • 165