Need a Tough-Love Debit Account

[tclotworthy]

I need a bank with a debit account policy that DOES NOT ALLOW overdrafts. I use BB&T for my kid, but you can overdraft for as long as you want and simply pay the per-overdraft penalty.

Isn't there a bank card that, when you go to use it, it doesn't allow you to use it if no funds remain in the account? Does such a thing exist???

Thanks for any response!!

[noppenbd]

Most banks have a prepaid debit card that you have to load up manually, and can only spend what is on there. Just watch out for fees associated (yearly or monthly maintenance fees, inactivity fees, reload fees, etc).

My bank, USAA, has a prepaid debit card intended for youth banking. There are no fees and the card can be used anywhere that Mastercard is accepted.

[KatieNK]

I thought MAC cards worked that way but obviously you can't use them for purchases, just for withdrawling money at the ATM.

I think if you called around to banks and asked for a debit card that did not allow this, you might find one that did....

[tripods68]

Majority of banks or credit unions offer links to a savings account, MMA, or credit card from primary checking account to avoid paying excessive Overdraft penalty and fees. However, most banks still charges between $3 to $7 per OD. But that still better than paying penalty and fees which cost around $35.

[cptacek]

I think the OP is trying to teach how to NOT overdraft, not how to do it cheaply. The prepaid one might be the way to go.

[familyof4]

I need a bank with a debit account policy that DOES NOT ALLOW overdrafts. I use BB&T for my kid, but you can overdraft for as long as you want and simply pay the per-overdraft penalty.

Isn't there a bank card that, when you go to use it, it doesn't allow you to use it if no funds remain in the account? Does such a thing exist???

Thanks for any response!!

We use a Federal Credit union that has a touch of both. It gives us a Debit card on our checking acct, but it works off the balance. So say I have 100.00 in the acct and my wife debits 70.00, if I try to debit 50.00 the system knows there is a pending charge and the charge is denied.

On the flip side, if we have the same 100.00 and my wife debits 70.00 and I write a check for 50.00, the account will overdraft, cover the check and charge me a fee... but the check will clear and not be returned. They do this up to 500.00. It is a little peace of mind knowing that if we happen to bounce, the place we wrote the check to will not come back to us.

I must admit, in the past we have used it as a short pay-to-pay buffer to cover our mortgage. So far from what I have seen on this site, I think it will help us so we are always in the black and not need to rely on that again.

So short answer, try credit unions or local banks.

[site_designer]

Bank of America

I know B of A lets you use a credit card as a backup plan in case of overdrafts.

[76Chick]

Most banks, now-a-days, will pay up to $500 in overdraft items. When they open your account, based on your information - they set a limit - which they call 'convenience' (and it might be for some) - but to the bank it really is Fee Income. It's one of they major ways they make money.

[Tree0164]

I think the OP is trying to teach how to NOT overdraft, not how to do it cheaply. The prepaid one might be the way to go.

Ditto! That is what I would do! They can not spend if they do not have the money.

Or atleast teach some responsibility tot he kid-make them pay cash until they can learn how to budget.