Do you have an overdraft

Bruce Wayne · #1 (**permalink**) 04-03-2006, 03:00 AM

Over three million Britons are said to have a permanent overdraft at their bank. Such levels of debt clearly leave a lot of people vulnerable to even the smallest interest rate rises.

Do you have an overdraft and how much do you use it?

CJsoccerchic · #2 (**permalink**) 04-03-2006, 05:01 AM

No overdraft protection here - and I stay under the amount that I have - I frequent my bank accounts VIA online so I make sure that things are looking good and nothing fishy is going on.,..

PrincessPerky · #3 (**permalink**) 04-03-2006, 02:01 PM

I have a 'missing digit' in the thousands place, I have no bills over 1000 so if I screw up it is covered, I just have to put the digit back when a balance, it is my 'free overdraft protection'

Ima saver · #4 (**permalink**) 04-03-2006, 02:45 PM

I don't really know. I have only had a bounced check once. I made up a deposit and never made it. I thought i did. That was before I had a computer. Now I check my checking accounts every day. I balance mine too, by hand, but not as quick as I should.

Thrifty Ray · #5 (**permalink**) 04-03-2006, 03:27 PM

I have overdraft protection, as I would rather pay a small finance charge for an error than an NSF fee. I keep the overdraft paid off...if I do tap into it (thanks to my DH having a debit card ..grrr..) I know it same day- next at latest...because I check my account daily...and pay the overdraft back right away. (finance chare is usually zero or just a few pennies)...If I didn't have that protection, each boo-boo would be $25 (ouch)

Funny story...here recently my dog (Grace, whose blind and senile) sniffed out DHs brownies off the counter and ate them...I called DH and suggested he pick up a mix to make some more if he wanted some that night. So he did.. a fancy kind that he spent more than I ever would have...later that night I check the account and there is a $9 debit from the store....NINE DOLLARS FOR BROWNIES...so I went storming off upstairs and ranted about the brownies...come to find out he had snuck in an extra $5 cash back for himself...Boy was he shocked that he couldn't get away with it for even a few hours LOL...

Ima saver · #6 (**permalink**) 04-03-2006, 03:40 PM

That is cute!!

jmjj215 · #7 (**permalink**) 04-03-2006, 03:47 PM

If you operate on a budget, overdrafts aren't a part of your vocabulary!

Tree0164 · #8 (**permalink**) 04-03-2006, 05:35 PM

I do have overdraft of $1,000. I may dip into it once or twice a year.

JoyJoy · #9 (**permalink**) 04-03-2006, 10:38 PM

I have a $500.00 overdraft line of credit but I haven't had to use it....not yet.

cicy33 · #10 (**permalink**) 04-04-2006, 08:38 AM

We have overdraft on both our checking accounts but we didn't request them the bank just gave them to us. It has come in handy a time or two. But we don't pay interest we just pay the charge to pay the check and go on. I would rather pay them the fee than to actually bounce a check. We definitely try to never do that but it has happened occasionally, usually when hubby forgets to tell me about a debit! I think that they are both $500.

NoWayNovember · #11 (**permalink**) 04-06-2006, 12:03 PM

As a bank employee, I have it on my account automatically, but I don't plan on using it. Why pay them 18% interest on the outstanding balance when it's so easy to avoid it!

Snoopy2645 · #12 (**permalink**) 04-07-2006, 10:08 PM

I have it on mine I got it when I quit working FT to be a sahm about 5 yrs ago it was hard getting used to one income!! I very rarely use it but I feel good knowing its thier but of course I feel very bad if I dip below & have to use it. Which I maybe do 1 time a year now that I am working again.

Haku · #13 (**permalink**) 04-11-2006, 03:33 PM

No, I don't overdraft. A tight budget helps greatly in that respect.

Yes, I have overdraft protection in the way of my emergency fund sitting in a money market account. Setting it up was free, so why not?

BAGAGT1 · #14 (**permalink**) 04-11-2006, 06:34 PM

I have overdraft protection, but the bank gave it to me (wouldn't pay for it), and I haven't had to use it in almost 9 years.

gavinmccallister · #15 (**permalink**) 04-11-2006, 06:44 PM

I have overdraft and only used it once don't like to use it but sure beats a $25 NSF fee.

PRICEPLUS · #16 (**permalink**) 04-11-2006, 07:27 PM

My wife has overdraft protection and uses it like a credit card. I have called her on it and she has promised to do it no more. We shall see. Can you imagine 21.9%. Sheesh!

thriftymom · #17 (**permalink**) 04-11-2006, 09:03 PM

It comes with our checking account. Never used it. If we needed it, they would charge $5/day. The money would come from our Savings Account if it is needed. So, it's not a credit line- is that still overdraft?

ender513 · #18 (**permalink**) 04-18-2006, 10:08 PM

Quote:

Originally Posted by thriftymom

So, it's not a credit line- is that still overdraft?

Most banks come with some type of <i>overdraft limit</i>, something that the bank does not consider overdraft protection, which allows you to go a certain amount negative in your account and charges an overdraft fee. Some banks also charge a fee for everyday you stay negative.

<i>Overdraft protection</i> is generally either a credit line or credit card linked to your checking which will pull funds (and charge interest, and possibly an annual fee), or a set up for money to pull from your savings account.

Personally, I just have an overdraft limit since that comes automatically with my checking account. Haven't used it yet *crossing my fingers*