Avoid overdrawing Checking accounts

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Avoid wasting money with overdraft fees, by keeping your checking account balanced properly .What is the best way to keep track of incoming and outgoing funds? The answer to that question is best answered by you . Find a way to be successful with your money, that fits in with your lifestyle. Here are some ideas to get you started in the right direction.

  • Keep track of transactions

This sounds so simple doesn’t it? Throw in a few debit cards and a checkbook, things can get out of hand fast . The goal is to get a written account of all your transactions. You can keep track of them on your computer, with a free balance sheet, or write them down in a notebook. Try to find a system that works for you and stick to it.

  • Use Online banking

If you do lose track of your balance, get back on the horse with online banking. If your not signed up for it yet,try it out. You can get a good picture what is happening in your account, with the ability of seeing pending and cleared transactions.

  • Sign up for overdraft protection:

If you do lose track of your checking account, having protection sure is a great bonus. Overdraft protection does just what it says, protects your account from becoming overdrawn.

There are two options for overdraft protection .

  1. Savings account overdraft protection.- When your account is overdrawn, your bank (usually for a small fee) will take the money out of your savings account and into your checking account to cover the purchase.
  2. The second is also known as an open line of credit. It is a loan amount that is pre-approved. When you don’t have the money in your checking account , it will pull on your line of credit to cover the cost of what is coming through.. This is treated like a loan, and a certain amount needs to be re payed each month.

Using a combination of these methods, will help you avoid overdrawing your checking account. Get into a good routine and you will be on your way to never having to pay another overdraft fee.

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