“Wait? What do you mean? Can you go over that one more time with me?” I wanted to scream at the polite and well-dressed lady sitting across from me, but didn’t want to make a scene. I’d been through this routine before and there I was again, sitting across from a know-it-all.
In a bank trying to decipher how I had another overdraft fee, one column said that I had money, but that it hadn’t cleared yet, so I was charged. I began to wonder if you need a law degree to sit behind one of those mahogany desks and persuade customers, against all odds, that they have been negligent.
I opened my first bank account two years ago when I first started FAU. Back then, no one bothered to inform me of things I think every new account holder should know in order to keep on top of things and avoid those pesky overdraft fees. I called several banks to find out what they thought were good tips to manage your money and this is what they told me:
1. Balance your checkbook – If you don’t balance your checkbook, you might as well let a blind person drive your car. Either way, you are destined to crash. By keeping tabs yourself you will not have to rely on the online banking website that takes days to show you when your transactions have cleared. If you use this successfully you will know exactly how much you can spend without going over.
2.Use your check card wisely – They look like a credit card and act like a credit card but its really not. Even I was blinded by those cool commercials that advertised the “Visa Check Card.” But those point-of-sale purchases, as my bank calls them, add up. You need to be vigilant. If you can avoid using it, do so and remember to always log what you buy with the card in your checkbook.
3. Know how long it takes for your checks to clear – Most major banks will give you access to the first $100 of a check immediately. But if you go over that amount thinking you have the money in your account and the check has not cleared, you will be charged an overdraft fee. There is a difference between current balance and available balance. Your current balance is a number they tease you with. It is in your account but not accessible to you at the moment. Most checks take between two to five business days to clear.
4. Try a budget – It is wise to know how much money you have and what you need to do with it. By having a budget you can set aside money for the essentials and have a fixed remainder for leisure activities.
5. Know your bank policy – Most banks automatically give you overdraft protection, which means if you write a check and have insufficient funds in your account, they will cash it and charge you a fee. This is because it is easier to pay it so you do not have to pay a service fee on a bounced check in addition to a fee from your bank. If you want that taken off you have to request it.
