Overdraft Fees = Unnecessary

Have any of you ever written a check? Like a real one where you use a pen and write in the amount and who you are paying it to? I probably write one check per month...my rent check. And if I could do it online I would. With all the electronic bill payments, Automatic payments, Debit Cards and Credit Cards, I never actually write anything down. But your check book comes with a very useful tool, a check register. In this handy little booklet you write the balance in your account and then subtract every transaction from the balance and add every deposit. This way, you always know how much is in your account at any given time.

"Why is this important?"

When you use your debit card, the funds do not immediately leave your account. Let's say you have $100 in your account. Tuesday, you go to the movies and spend $25, then go to In-n-Out and spend $20, then you need to put gas in your car so you put $35 in there. On Thursday, you need to get some cash out of the ATM, so you check your balance and it says $45. Cool, you figure you get paid on Saturday and take out $40. What you haven't figured in is that the $25 from the movie theater hasn't cleared your account yet. And on Friday when it comes in it overdraws your account to bring your balance to -$20. And your bank charges you a $27 Overdraft Fee. So, now you are -$47.

These fees add up. And you can get charged for every transaction that you don't have the money to cover. A $5 cup of coffee could potentially cost you $32!

Keep track of the money you spend, how much is in your account, and when transactions clear from your account to avoid paying these fees. Check your account online by using online banking and you can see when the money leaves your account.

Just a friendly tip from your Credit Union!

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