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.
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 –
