Overdraft fees occur when a bank account does not have enough funds to cover a transaction, such as a debit card purchase or check. When this happens, the bank may charge an overdraft fee, which can range from $25 to $35 or more. Overdraft fees can add up quickly, so it is important to avoid them whenever possible.
There are a number of ways to avoid overdraft fees. One way is to keep track of your account balance and make sure you have enough money to cover your transactions. Another way is to set up overdraft protection, which allows you to link your checking account to another account, such as a savings account or line of credit. If you overdraft your checking account, the funds will be transferred from the other account to cover the overdraft. You should be aware that overdraft protection may come with its own fees.
