No overdrawing with ATM card vs Debit card?

[iSamurai]

So I only have a savings acct. with an ATM card at the moment. The other day I tried to take too much out and it said I didn't have sufficient funds. I thought ATM's just overdrew if you ask for too much. Is there a difference in regard to this with ATM vs Debit cards? Is it just because I'm using savings vs checking?

[mom-from-missouri]

Mine will let me do it--It probably depends on what type of account you have. (my account has overdraft connected with our savings acnt)

[sweeps]

Maybe this is a stupid question, but why are you trying to take out more money than you have in your account?

[iSamurai]

I was just wondering because I accidentally wanted too much out of my account and instead of it giving me the money it told me I didn't have the funds.

[cantretire]

you can only withdraw what you have, unless you have overdraft

[Broken Arrow]

Originally Posted by mom-from-missouri

(my account has overdraft connected with our savings acnt)

I think that's the answer.

[disneysteve]

Originally Posted by Broken Arrow

I think that's the answer.

No. The answer is: don't try to spend/withdraw more than you have. I've never understood the point or need for overdraft protection. Do you have any idea how much banks collect in overdraft fees every year? Billions of dollars. All money that should have stayed in customers' pockets.

[safari]

Originally Posted by iSamurai

I was just wondering because I accidentally wanted too much out of my account and instead of it giving me the money it told me I didn't have the funds.

Consider yourself lucky. If it let you withdraw more money than you had, you'd be paying an overdraft fee.

[cantretire]

Originally Posted by disneysteve

No. The answer is: don't try to spend/withdraw more than you have. I've never understood the point or need for overdraft protection. Do you have any idea how much banks collect in overdraft fees every year? Billions of dollars. All money that should have stayed in customers' pockets.

True. I only have mine just in case I miscalculate. Mine is a line of credit, so the interest is high. If i've used it, I pay it off immediately from my savings so that I don't pay any interest at all. Basically, it's just a safety net since all my bills are autopay.

[Broken Arrow]

Oops. I meant I think that's the answer as to why mom-from-missouri was able to overdraft where as iSamurai was declined. Because of tying another account in for overdraft.

I didn't mean that's the answer to managing your personal finances.

[disneysteve]

Originally Posted by Broken Arrow

Oops. I meant I think that's the answer as to why mom-from-missouri was able to overdraft where as iSamurai was declined. Because of tying another account in for overdraft.

I didn't mean that's the answer to managing your personal finances.

Gotcha.

I was just reading an article about overdraft fees the other day. Might have been in Money or possibly TIME. Not all that long ago, they didn't exist. If you tried to withdraw more than you had, the transaction just wouldn't go through. But to "help" the customer from getting caught short, banks started allowing you to overspend your account and charge you an arm and a leg for the privilege. Spend $1.00 more than you have and get nailed with a $30 fee. What a great service that is.

[DebbieL]

Without the protection you would be charged a huge NSF fee. I only have it in case of a one time oops on my part. I have had to use it (due to an error on my part) and transfered the money into that account from another account the next day. Didn't cost me anything. Mine doesn't charge a fee, just interest (which like I said it was only 1 day - I don't think it cost me anything).

[mom-from-missouri]

Originally Posted by disneysteve

No. The answer is: don't try to spend/withdraw more than you have. I've never understood the point or need for overdraft protection. Do you have any idea how much banks collect in overdraft fees every year? Billions of dollars. All money that should have stayed in customers' pockets.

Its not just for deadbeats...

I got it years ago. Why?
Because I got stuck in the city once with a family member after we were in an auto accident and she was admitted to the hospital. I had no money for food, no car (was totaled by a drunk), no hotel...had to sleep in the hotel lobby. It was payday but my paycheck was in the mailbox at home (this was before they had the direct deposit thing). If I had overdraft protection, I could have gotten a hotel room and some food.
No one would rent me a car (because I was not 21 yet, and I had no credit card other than a Montgomery Ward card)

So, when I finally got back home, I got overdraft. When my company started offering direct deposit, I got it as well.

If I had overdraft, I could have written a check for cash to eat and sleep.

Do I delibertly write over my amount??? No. But it came in handy while in Wyoming for a funeral and we blew 2 tires out that had to be replaced. Due to the time difference our bank was closed, so I could'nt call to transfer money from saving to checking. So, I wrote the check. We got the tires at Walmart, which now Walmart runs your check thru on the spot and hands it back. If I had no overdraft, Walmart would have rejected the check.

My bank offers it for free.

[disneysteve]

mom-from-missouri - Those are certainly 2 unfortunate incidents, but both could have been handled with cash, credit card, debit card or visit to an ATM. We don't carry checks with us. Never have. Probably never will. And we also carry cash at all times. I guess we just never saw the need or advantage of using checks outside of the house. And for things we do pay for by check, we always make sure there is enough in the account before we write a check. I didn't mean to imply anyone was a deadbeat. I just never saw the need for overdraft protection as I've never overdrawn my account.

If your bank provides this service for free, that's very nice, but I can't see paying for it.

[mom-from-missouri]

I dont carry a lot of cash--certainly not enough for $600 worth of tires or 2 days of hotel and food. I've had my purse stolen twice.

And as previously stated if you don't have overdraft protection, then you can't do it with your ATM or Debit card.

Credit card ok--but the first incident I was just out of high school and too young to get a VISA and such--they used to make you be 21 and employeed for a certain lenght of time to even get one.

Now, they give CC apps out to students still in high school. I subbed last week at a school where they were on the info board in the hall. If you were under 17 a parent had to cosign. If you were 18 and older, you could get one without a parent.

[loanstar]

overdrawing in like borrowing and as far as i know, savings accounts are not meant to have a borrowing facility.

[mom-from-missouri]

I guess I kind of view it as an insurance policy. I don't plan on using it, but its there (and free) if I need it--which has been twice in 30 some years. My bank also automatically transfers the "borrowed" money back into savings when a deposit is made.
Do bounced checks show up on credit reports??? Just wondering-never had one so I didn't know if they did or not.

[sweeps]

But the drawback is you open yourself up to more damage if your account is compromised.

Bounced checks don't appear on your credit report, although they may appear in other databases such as ChexSystems.

[BTC]

Originally Posted by disneysteve

No. The answer is: don't try to spend/withdraw more than you have. I've never understood the point or need for overdraft protection. Do you have any idea how much banks collect in overdraft fees every year? Billions of dollars. All money that should have stayed in customers' pockets.

A lot of banks don't charge any more than a finance charge, like a credit card, for overdraft protection. Personally, I like the convenience. One thing I did not like while banking with Netbank is that my overdraft line of credit was not accessible via my debit card. It was only accessible for checks & bill pay. I'm not sure what ING Direct's policy is, but I need to find out.

The bottom line is that I think it's a matter of personal preference and one answer doesn't fit everyone.

[cicy33]

We also have overdraft protection. I think I have had to use it once. A hotel had a hold on our card for a day or two longer than I thought and a check I wrote came through before the hold came off. I wasn't overdrawn, I didn't spend foolishly, I just miscalculated the timing. It happens. And I agree, who carries enough cash to do more than put gas in your vehicle and get something to eat? When I went to my sisters in September I didn't carry more than $100 in cash. and that was because I knew that to fill my tank was about $50. I don't even carry cash as I now have direct deposit. I don't have any credit cards and don't want them so that is not an option. Unfortunately, I don't have a lot saved up but I am working on it. But not everybody has lots of money set aside. The ones that do, great, but the average person doesn't. We are trying to get some money saved up but it takes time and sometimes it seems one thing after another happens. And sometimes people make math errors. I would rather have the overdraft and have my check go through and pay the bank $25 or whatever the fee is then to bounce a check at say walmart and pay them a fee plus my bank. At least this way there would only be one fee. Overdraft should be something that is there in an emergency but definitely not used as a weekly cash fund. I have a friend that constantly is overdrawn. Would drive me crazy!