An overdraft fee occurs when you spend more than you have in the account. An NSF fee (non-sufficient funds fee) occurs for each time the bank denies or rejects a transaction for not having enough money in your account. An overdraft and NSF fee are usually the same amount.
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An overdraft fee occurs when you spend more than you have in the account. An NSF fee (non-sufficient funds fee) occurs for each time the bank denies or rejects a transaction for not having enough money in your account. An overdraft and NSF fee are usually the same amount.
For example, a Chase overdraft fee is $34 when you buy something for $25 with only $10 in your account, leaving you with a -$49 balance. The bank may charge you an NSF fee when you try to buy the $25 purchase, but it will deny the transaction.
If the account has a $34 NSF fee, then you will have a -$24 balance and no purchased item.
Having a cushion of $100, $500, or $1,000 can save you $27 to $35 (national average) for each purchase that dips into that savings. Banks can charge you an overdraft fee in different ways, depending on their policies.
A bank can charge you:
· For each transition that causes your balance to dip less than $0, which can mean several charges in one day.
· For each day your balance is less than $0.
· One fee, such as $34, for the first overdraft and then another amount each day or number of days. For example, Chase checking account fees for non-sufficient funds is $34 and then $15 for every five days that account is overdrawn.
Even if your bank does not require a minimum balance, you should also have a cash cushion in your account to dodge surprise fees.
By Admin –
