No Overdraft Fees Banking - A How-To Guide

We all daydream. And, when we do, we often imagine a life that is almost like this one, but with a few, special modifications that just make it that much more fun and rewarding. Cross-country travel without the long wait times. Hot fudge sundaes without the fat and calories. Relationships without fighting over the remote. Banking without overdraft fees.

Well, those all sound like a pipe dream, don't they? And, frankly, they are. Except for the last one, that is. Yes, nowadays, you can find checking accounts from banks that will never charge you an overdraft fee - even if you overdraw your account.

Why No-Overdraft Checking Matters

If you are like most of us, your banking needs are pretty simple. You want somewhere safe to keep your money. You want to be able to access your money when you need it. You need to be able to check your recent banking activity and current balance information. And, you wouldn't mind earning a little bit of interest in the process. Unfortunately, most of the major banks in operation today won't let your life be quite that simple.

Banks make life more complicated for all of us by featuring complex fee structures. One of the biggest components of bank fees is the overdraft fee.

The Reason Overdraft Fees Have Become Such a Big Problem

In the old days, most banks would charge a monthly checking fee. They would also charge additional fees for processing checks. However, about 10 years ago, there began a trend toward free checking. Pretty soon, every billboard you passed by proclaimed the merits of free checking at your local bank. Of course, to make up for the lost revenue from checking account fees, banks had to come up with a new plan. Enter overdraft protection programs.

Overdraft protection programs are a way for banks to "protect" their customers from having their checks or charges rejected due to insufficient funds. Unfortunately, many bank customers do not feel protected by these programs - we feel tricked. Why? Because, banks charge a hefty fee every time an overdraft goes through. In other words: you might end up paying a $35 "fine" for charging a $5 latte onto your debit card. Doesn't feel fair, does it?

Who is to Blame?

Can you blame the banks for this situation? Not really. After all, they need to be able to turn a profit for the services they provide, don't they? In a capitalistic society, individuals and banks are motivated by self-gain and profit.

While it is hard to blame banks for trying to turn more of a profit, some people believe banks have gone too far when it comes to overdraft fees. After all, together they bring in almost $30 billion per year in overdraft fee -based profits each year. The bottom line is: ultimately, you and I are to blame for feeling "screwed" by our banks if we do not take action to get ourselves into a better situation.

How to Achieve No Overdraft Fees Banking

If you want to achieve no-overdraft fees banking, you have two main options:

1. Fight your bank every time you get an overdraft fee charge on your statement. And, fighting your bank sometimes works and you can get a refund. However, your time is valuable, so you don't really win even when you get a refund.

2. Switch banks to one that offer no-overdraft fee checking, even when you overdraw your account. These banks are few and far between, but there are a number of national banks that offer no-overdraft checking.

Evaluate your options and consider switching as soon as possible. The sooner you switch, the sooner you can stop paying overdraft fees.

Get a list of no-overdraft-fee banks in your area right now at: http://www.squidoo.com/banks-without-overdraft-fees.

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