Overdraft Protection Agreement

Most current accounts and some savings accounts can be linked to overdraft protection (overdraft protection is not available for Bank of America Advantage SafeBalance Banking®). You can link your eligible current account to a savings account, another eligible current account, credit card or line of credit. Credit overdraft lines can range from $250 to $5,000 or more and of course come with an interest rate. If a credit card is used, it should be noted that the amount is treated as a cash advance. This has no grace period and usually comes down to a high interest rate, as well as cash advance fees (usually a flat fee of 10 usd or 5% of the advance, the largest, which is increasingly important), making it a fairly expensive form of overdraft protection. A linked savings account is probably the most cost-effective solution, but it must have enough money to cover the necessary funds. Checks and other debit transactions are compensated when you register for overdraft protection, even if your account doesn`t have sufficient resources. In exchange for this service, your bank can charge a juicy overdraft fee. Is this protection worth it? Here`s a look at the pros and cons. A recent product, proposed by some banks, is called « bounce protection. » Another option is to ask us to apply the « All Descendants » option to your account. With this option, we will refuse or return transactions if you do not have enough money in your account at the time of the transaction. Note, however, that you may have an NSF: Returned Item Fee charged. In the absence of overdraft protection, it is not uncommon for banks to charge several overdraft or NSF fees per day, z.B.

when a consumer makes successive purchases without realizing that the amount on their account is not enough to pay for purchases. Many banks also charge extended overdraft fees if a current account is negative for more than a few days. It is important to note that even if you have overdraft protection, banks still charge these extra fees. Typically, an overdraft protection agreement comes into effect when an account holder withdraws more than the current account balance.

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