Today I’m going to cover a touchy subject regarding our Action Step #5: Banking.

Overdraft fees. I know, they’re embarrassing.

But sometimes they happen, especially if you have monthly bills that are automatically deducted from your account. And if you haven’t experienced one in awhile, perhaps someone else in your family has.

There is a silver lining, though. As often is the case, you have options.

As you continue to get in financial shape for 2020, now is the perfect time to take a look at your bank’s overdraft fees. Some, like KeyBank, charge $39.00 per overdraft with a $195.00 total possible cost in a day.

It’s especially painful if your bank charges multiple nonsufficient funds or overdraft fees per day because someone made many transactions with a negative balance. As a result, you could owe hundreds of dollars in penalties.

Yikes!

Why give the banks more money?

You may be able to find a bank with lower overdraft fees. It’s also why one of yesterday’s tip could come in handy. Getting alerts when your account is running low will help you avoid those hefty fees.

Outside of the banks without any overdraft coverage fees, you can generally find a cheaper option with overdraft protection transfers.

These are opt-in programs that link a second account to your checking account. An overdraft would trigger a transfer from the second account to cover the transaction. The linked account can be a savings account, credit card, line of credit or even another checking account, depending on the bank’s policy.

The cost of this transfer is around $10 or $12, although it can be cheaper. Sometimes the service is even free.

When it comes to your financial strategy, we at Matson & Cuprill are relentless when it comes to finding solutions that work.  Call us today at 513-563-PLAN (7526) or book online and together let’s develop a plan that puts you on target for the kind of life you want and deserve.

Regards,
Dan Cuprill, CFP®