It’s not uncommon to let your personal checking balance drift dangerously low. Nor is it unheard of to write checks that you mistakenly think your balance will cover. Unfortunately, allowing your account to be overdrawn can be extremely expensive. Each transaction can end up costing $30 or more. And today, when the banks are more desperate than ever for cash, they’re willing to let overdraft transactions go through for their long-time customers.

In this article, we’ll give you 4 tips to help yo make sure that you never again allow your checking account to be overdrawn.

#1 – Reconcile Online

One of the most common mistakes that people make is neglecting to reconcile their checking account. You don’t need to make sure your balance is accurate to the penny. However, you should regularly log into your bank online to keep track of which checks have paid and which are still outstanding. Don’t trust your ATM receipts. Don’t rely on the statements that you receive in the mail. The latest information that your banking institution has will be on their website.

#2 – Set Up Automatic Notifications

The larger banking institutions will let you set up automatic notifications to be sent to you if your checking balance dips below a predetermined amount. You can choose to receive an email or text message, alerting you that you need to transfer or deposit funds. While these alerts should not replace your tracking your balance online, they can serve as helpful reminders which prevent overdrawn situations.

#3 – Sign Up For Overdraft Protection

Most banks offer this type of protection. In the event that a check comes in and you don’t have enough in your account to cover it, your bank will transfer the necessary funds from your savings account or line of credit. It’s not an ideal solution because you’ll likely have to pay a small fee for each time they need to transfer funds. But, compared to the $30 that you’d be required to pay without the overdraft protection, it might make sense.

#4 – Maintain A Buffer

One of the best ways to prevent an overdraft situation is to keep a few hundred dollars in your account. Emergencies happen. Sometimes, you may need to write a check for unpredictable expenses. A financial buffer can help ensure your balance will cover your check.

Being Vigilant With Your Money

An overdraft situation can happen to anyone. Sometimes, transferring money from our savings in order to cover outstanding checks slips our minds. Other times, unforeseen expenses can occur, leaving us to scramble for the necessary funds. By following the 4 tips above, you can keep on top of your personal finances while ensuring that your bank can’t charge those exorbitant overdraft fees.

If you do incur overdraft fees, it is sometimes possible to negotiate with the bank to have the fees removed. If the overdraft is not a habitual situation for your bank account, most of the time the bank will work with you – the first time. After that, you’re in fee city.

Author Bio: Lawrence Reaves says that for the best information on the web, check out Very Best Sites. For the best website on the web, check out Bizarre Bytes.

Category: Finances
Keywords: overdrawn bank account, overdrawing your bank account, overdraft protection