Recently
Make Your Own Sanitizing Wipes
Dear Mary: I would like to find a recipe to make hand sanitizer and sanitizing wipes. Do you know of one? — Delores, e-mail
Dear Delores: I have been thinking about the same thing, now that we're learning that products like Purell are …Read more.
7 Simple Ways To Stretch Food Further
Buying groceries on sale and cooking meals at home are excellent ways to keep the cost of food under control, but there are other things we can do. Here, for your enjoyment, are simple ways other "Everyday Cheapskate" readers make food and …Read more.
Why You Can't Afford Credit Card Debt
Last year, the Federal Reserve Board announced new rules for banks that issue credit cards. The rules will remove unfair credit card practices. Months later, Congress passed into law the new Credit Card Accountability, Responsibility and Disclosure …Read more.
For You: A Few of My Favorite Things
Last year, a friend of mine had the best idea. She made gift baskets for her friends filled with her favorite things. Taking a nod from her, I'd like to give you a virtual basket filled with some of my personal favorite things.
—Real Salt. I'm …Read more.
more articles
|
Protect Yourself From the Bank Bounce Fee BiteBanks have taken big financial hits over the past year, in part because of the subprime mortgage meltdown. Now they are scrambling to recapture their losses. One of the ways banks are doing this is by charging fees. Most commonly charged are "bounce fees" and "overdraft fees," which are punitive charges to customers when they spend more than they have in their accounts. It used to be that if you didn't have enough money in your account to cover a check you wrote, an ATM withdrawal or a debit card purchase, the bank would deny payment. Embarrassing, right? These days, banks and credit unions are far more apt to cover you if you overdraw your account, not because they care about you or want to save you the embarrassment of bouncing a check or transaction, but so that they can collect bounce fees. There are two ways that a bank or credit union can cover your overdraft: using its money or using your money. —Bank's money. Calling it a "courtesy bounce," the bank may use its own money to float you a short-term loan to cover your mistake. The bank doesn't ask you whether you want this loan. It just gives it to you, and it will cost you dearly. Even if you go over by only a few dollars, prepare to get slapped with a "bounce fee" of $29 to $39 per item. That's not all. Most banking institutions now charge daily fees of $5 or more each day you remain overdrawn. —Your money. Also called "overdraft protection," this is a provision that you must arrange for ahead of time. You can set up a line of credit (like a credit card account), called an overdraft protection account, or you can identify a savings account from which you want the bank to pull the money to cover your overage. You would pay a fee to transfer the funds if this were to happen, but it would be considerably less than a courtesy bounce fee. Your bank or credit union will default to a courtesy bounce plan if you have not taken the steps necessary to set up overdraft protection. Don't expect it to ask for your permission. Courtesy bounce fees have become a lucrative income stream for banks. Do you know for certain how your bank or credit union would handle overdrafts on your account? Pick up the phone and find out right now. If you do not have overdraft protection in place, set it up now, even if you believe that you never, in a million years, will bounce your account. Stuff happens. You'll be glad you did. Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including her latest, "Can I Pay My Credit Card Bill With a Credit Card?" You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com. COPYRIGHT 2009 CREATORS.COM
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
