Bank account holders are facing some issues of overdraft these days.
They have to pay heavy charges levied by the banks on their account.
We have seen most of the bank account holders are fed up due to this policy provided automatically by the bank.
So account holders want to avoid overdraft fees.
They ask experts and everyone will tell them that there is no way to avoid such unnecessary charges from their banks.
You can simply apply the below mentioned methods to save money and avoid such unnecessary charges.
#1. Tell The Bank Not To Cover Overdraft
If you are serious about avoiding your bank account overdraft fees, then the basic method is here. The most basic method is to tell your bank to not to cover your bank account for overdraft. If you are responsible and can pay all of your automatic payments on your own, then this is the right solution for you.
You can avoid overdraft fees when you are not allowing your bank to cover any overdraft on your account. Simply you have to take the responsibility of overdrafts on your own. Doing this will help you save money that you are spending on overdraft fees.
#2. Track Your Account Regularly
A bank account holder needs to track the payments and balance of their account regularly. When you are not serious about finance then it becomes more difficult for you to avoid overdraft fees. Because the bank will take care of your automatic payments. When your account will be out of money, you don’t know that because you are not tracking your account. So if you don’t know that your account is having insufficient funds, then how it will be able to pay your automatic payments? Then the bank will manage the payment and put your balance in negative to show you that you have to repay that amount to the bank.
#3. Note Down All Your Automatic Payments
Not only the bank account has to be tracked by the account holder. But the automatic payments should also be considered by the bank account holder. A bank account holder must note down all of his automatic payments. These automatic payments can be his/her utility bills, loan EMI’s or anything else.
These payments will be automatically debited from the bank account and then the bank will ask for the overdraft fees. You can avoid overdraft fees if you know how much amount you need to pay all of your automatic payments.
#4. Keep More Cash In Account
Keep more balance in your bank account. This one is the key to avoid overdraft fees. You don’t have to put cash in your pocket or the cupboard of your house. Keep your account with sufficient balance. This balance will help you save money that you are wasting as paying
overdraft fees.
So the simplest method is to always deposit more and more cash in your account. Overdraft issues come when we stop using that bank account. When we don’t have any transactions in our bank account, we will find more overdraft charges on it. So use it
properly and if you don’t have any use of that bank account. Then separately transfer some amount to this account every month.
#5. Email Or SMS Alerts Are Important
We have told you that you can avoid overdraft fees if you keep track of your automatic payments, and you deposit sufficient money in your account. Basically to keep track of your account, you don’t have to visit the branch. This one is the conventional method to keep track of your account.
But now you can get alerts from your bank through various methods. Such as an Email or SMS. These alerts help you know all about your bank account in just a few clicks. You just have to click on an email and you will get all alerts from your bank account. So it is important to turn on alerts for your bank account.
#6. Pay As Soon As Possible
If you want to avoid overdraft fees then you must know that paying all of your bills, EMI’s or anything else as soon as possible will help you. Just keep in mind that how much money you have to pay each month.
Then pay every bill on time or before the deadline. Other than this if your bank has charged you some overdraft fees for some reasons. Then you must pay the overdraft fees as soon as possible. Delaying payment of overdraft fees will lead you towards more heavy overdues.
#7. Link Two Accounts
You can link two accounts if you are facing overdraft charges every month. This method can work only with the person who is operating more than one bank account. Sometimes we use one bank account actively and the other one is not that active.
In such situations we have to link the two accounts to avoid overdraft fees. If you are facing the bounce charges of automatic payments and overdraft issues on an inactive bank account. Then you must link it with the other active bank account. Whenever the inactive bank account is out of money, the automatic payments will be redirected to the other active bank account.
#8. Ask The Bank To Waive Off Fees
The above said methods are to avoid overdraft fees in future. But what if you are already involved in this problem. What you can do if your bank has already put some heavy charges on your account.
What will you do now? Is there any solution to this? Yes, there is a solution. You can go for the best banking practice called settlement. The settlement can help you reduce the overdraft fees load.
You can simply ask your bank to waive off fees that they have charged on your account due to the overdraft. The bank may not waive off it completely but if you tell bank officials about your financial situation. They will waive off a big part of your overdraft fees dues.
#9. Switch To A New Bank
If your bank keeps charging you for the overdraft fees and you are facing issues to avoid overdraft fees. Then the next possible situation is to switch to a new bank.
You must search for a new bank which has low charges on overdraft coverage. This one is the simplest but the best method. Just go to a new bank and open an account with no overdraft coverage service.