Comments for Overdraft.ca : Questions and Answers about Overdrafts in Canada

Comment on What bank should I use that does not charge overdraft fees? by piol

piol — Fri, 26 Feb 2010 22:06:56 +0000

Where does funding for UFT merit bonuses come from?

Comment on What bank should I use that does not charge overdraft fees? by bdancer222

bdancer222 — Tue, 12 Jan 2010 07:42:52 +0000

Let me guess, they processed the largest checks first and the fees accumulated so that even the small checks/debit transactions bounced.

All banks process checks/debit transactions this way. The theory is that the largest amount is the most important. You wouldn’t want your mortgage payment to bounce while a couple $5 fast food debits went thru.

Comment on How can I convince my bank to reverse overdraft charges? by Joe K

Joe K — Sat, 09 Jan 2010 12:26:19 +0000

I had that happen to me a couple of times also with my ATM card. I got messed up simply because some of the charges were not deducted from my balance until a week later. The whole time I am thinking that I had more in my account than I really had so when the $128 charge hit me a week later, they didn’t charge me the overdraft fee on that particular transaction- They charged me on all 15 transactions that followed. It was almost like they fixed it that way.. where they purposely held the $128 transaction so that I could keep overdrafting without knowing it and THEN retroactively hitting me for the other transactions. It was double jeopardy. I kept putting the small amounts of money back in the back to cover those transactions as I was making them but because I was getting hit for $35 for every $4.32 transaction, there was no way I could keep up. So I went to my local branch to see the manager and I explained to her that I got WAY off track and its my fault that things got that way, but I am trying to pay my rent and feed my kids. To have a $525 chunk taken out of my account over $38 in transactions was TERRIBLE. And in that I even kept insisting that it was indeed my fault but I really needed my money back.

The manager said, “Well as a courtesy we normally remove one for you but I will tell you what- I will take 8 of them off.” and I graciously thanked her for it. I was still down $245 but that was better than having my entire direct-deposited paycheck absorbed by bank fees.

Comment on What bank should I use that does not charge overdraft fees? by TaxGurl

TaxGurl — Fri, 08 Jan 2010 21:20:11 +0000

All banks will charge overdraft fees if you overdraw your account.

Washington Mutual gives you one “freebie” overdraft per year though. If you don’t need it, it rolls over and you have 2 available the next year….and so on.

Wells Fargo will allow you to set up email alerts when things post to your account so you will know to go look at your account if you weren’t expecting any activity on it.

If you aren’t using this account while you are away at school, look for a bank that doesn’t charge a monthly maintenance fee. Those little fees can add up.

Like some of the others have suggested, many banks will also offer you overdraft protection in which they will transfer money from your savings account to your checking account (for a fee!!) if your checking will become overdrawn. The fee for transferring may not be much less than the overdraft fee.

Comment on How can I convince my bank to reverse overdraft charges? by elenanita

elenanita — Wed, 06 Jan 2010 17:24:40 +0000

Yes, ask the branch manager for help. Very politely admit that you made an error and request that the fees be waived. Also, ask if there is any way to prevent this in the future. They will have some type of overdraft protection to offer you. Accept it. It will be seen as a sign of your intention to continue your banking relationship. They want your business and what better way to show them that you will stick around since they have given you such great service. Now here is the catch. They are probably going to give you a line of credit. If you are not good with credit, close it (but of course, not on the same day they give it to you). If you are able to keep it in control, keep it because this may help you if you ever make an error again. The bank wants customers that have more than one product with them. When you become a true customer (people with checkings accounts actually cost the bank money) they will be more than willing to help you out. But don’t expect all 10 fees to be reversed unless you are a sweettalker.

Comment on What bank should I use that does not charge overdraft fees? by The Shadow

The Shadow — Wed, 06 Jan 2010 01:41:13 +0000

All banks charge overdraft fees.

Here’s a innovative idea. Why not keep track of your purchases and balance your account so that you don’t have overdrafts? I’ve had a checking account for 30 years and a debit card for as long as they’ve existed. I have never once had an overdraft. Frankly, it’s not rocket science.

Comment on Can someone please explain to me the basics of how an overdraft works? by Compare Cards

Compare Cards — Tue, 05 Jan 2010 13:05:56 +0000

You may really want to consider closing this account. A big problem or issue once you go over your credit limit is the fact that your interest rate will likely change.

I recently went over on a capital one credit card and was worried that my rate would change as well as being charged a whole bunch of fees. Because of my level of account, I have good credit, I was told that no fees were assessed and my rate wouldn’t change. This is the only issuer that I know to be doing this.

Not sure if Capital One has cards in the UK.

Comment on What bank should I use that does not charge overdraft fees? by hadeshion

hadeshion — Mon, 04 Jan 2010 19:27:56 +0000

if you don’t like overdraft fees, try the mattress budy!

Comment on Can someone please explain to me the basics of how an overdraft works? by inter_connected1

inter_connected1 — Sun, 03 Jan 2010 20:04:33 +0000

Basically it’s interest free while you’re a student then they’re hoping you’ll still be in debt by the time you graduate at which point they’ll start charging you interest.

And if you go over the limit (and they’ll happily let you), they’ll charge interest and a fee, sometimes £20 a day for however long you’re over the limit.

One idea is to take the £1000, stick it in an ISA (tax free savings account), therefore making interest on the money.

After three years, close the ISA, give the bank their £1000 back and you keep the interest – free money.

Comment on How can I convince my bank to reverse overdraft charges? by spot

spot — Sun, 03 Jan 2010 07:37:09 +0000

First, do not argue with them. It happened to me once and I had no idea they would do that. I thought my debit card simply wouldn’t work when there is no money, but, instead, they advanced the fund and charged me. I was so shocked and told them I had no idea. But I admitted it was my fault that I didn’t take time to read ALL the fine prints on my account agreement for I was sure it was explained on it very clearly. I also immediately added more than enough fund to my account to cover whatever they charged me plus more. Then I asked very humbly is there anything at all they could do. They basically felt sorry for me and only charged me half the amount.
The banks don’t like people making up excuses. Admit your fault and then ask very nicely.