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Home >> Accounts >> Checking Accounts
Overdraft Fees: What can I do?
I noticed that my checking account was overdrawn by $18 and immediately deposited enough funds in cash to make the balance positive. The next day I received four overdraft fees from the bank (four transactions led to the deficit).
I called the bank and they said that they would only take off one overdraft fee. I feel like I am getting worked over and want to switch to another bank. Can I close an overdrawn account? How long can I wait to pay these overdraft fees? I have other bills that take priority over these.
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 Switching accounts to another bank can be a hassle, but it certainly can be done. Before you do, however, take a balanced view of the service and fees at your current bank (only because it's usually easier to "stay put" than to move), and compare them with what's available at other banks or credit unions in your area. Don't change banks just because of this incident, but do change them if it makes economic sense for you to do it.
Also be aware that all banks charge overdraft fees. Compare those fees at all the institutions you are researching. That may seem strange if you don't intend to overdraw your accounts, but face it, overdrafts and mistakes do happen.
If you decide to move your business, it's best to leave with a clean slate at your old bank. If you don't repay the overdraft fees, they can administratively close your account, and could add their experience to your credit records. When that happens often enough, it can adversely affect your credit rating, as well as your ability to obtain accounts elsewhere. Even if you are able to open a new account before closing the old one out with a deposit, take care of that overdraft as soon as you can to prevent having negative information reported on your record.
Published on BankingQuestions.com 7/03/07
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