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If you aren’t aware of your account balances when you are shopping, you could make a purchase that pushes your account negative. As a result, you can be charged an overdraft fee. Sometimes more than one fee can be applied if you keep making purchases. Here are a few steps to follow to avoid this costly scenario. 

Watch your account 

Checking your account daily is important. This helps you to know how much money is in your account and that transactions are hitting your account accurately. Signing up for online or mobile banking is a perfect, easy tool for you to keep an eye on your account. 

Use automatic payments 

Setting up automatic payments from your checking account for utility, loans and miscellaneous bills is a great way to keep track of when your money is leaving your account. You will have fewer checks to write each month and fewer checks clearing from your account. When you set up automatic payments, you specify the exact date that money leaves your account, so you can schedule these for when your account receives paychecks or other deposits. 

Online Alerts 

Through your online banking you can set up email or text alerts when your account hits below a certain dollar amount. This way, you will know it is time to add funds to your account quickly!  

Opt out of overdraft coverage 

Opting out of overdraft coverage means that your financial institution will not cover one-time debit card or ATM transactions and then charge overdraft fees on them. This also means that transactions will be declined if there aren’t enough funds in your account to cover a transaction. This can save you fees, and help you stay aware of your account. In a 2014 report from the Consumer Financial Protection Bureau, debit card transactions caused more overdrafts than any other transaction type. 

Following these easy steps can help save you those fees and give you peace of mind with your account!