{"id":40758,"date":"2023-01-30T05:54:00","date_gmt":"2023-01-30T05:54:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=40758"},"modified":"2023-03-09T10:02:18","modified_gmt":"2023-03-09T10:02:18","slug":"overdraft-protection","status":"publish","type":"post","link":"https:\/\/businessyield.com\/financial-aid\/overdraft-protection\/","title":{"rendered":"OVERDRAFT PROTECTION: Definition & How Does It Work","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
With overdraft protection, a tenant with a balance of $550 can withdraw $700 without fear of insufficient funds. This service is offered at a cost by the banks because the transaction requires additional processing. However, your bank provides such a service to ensure that your transactions are covered if you have insufficient funds in your checking account. In this article, we\u2019ll further discuss Wells Fargo Overdraft Protection, Bank of America overdraft protection, Chase checking account, and how it works.<\/p>\n
Overdraft protection is a program by your bank that ensures that your transactions are covered if you don\u2019t have enough money in your Chase checking account. The bank will transfer money from another linked account to the overdrawn account automatically. Although the bank may charge you for this service, it is normally much less expensive than paying an overdraft fee. Bank policy regarding overdraft protection, including whether or not a fee is levied, differs. To determine if overdraft protection is good for you, ask your financial institution to explain the specifics.<\/p>\n
Overdraft protection might help you save money on overdraft fees. When you overdraw with this service, you will still be charged a price, but it will be less than the bank\u2019s usual overdraft fee: $12.50 instead of $35. Furthermore, overdraft protection ensures that the individual you\u2019re paying gets their money as soon as possible.<\/p>\n
With Wells Fargo\u2019s overdraft protection service, you can link up to two eligible accounts to your checking account(s), such as a savings and a credit account. The bank will use funds from your linked accounts to cover any transactions that your checking account balance cannot support.<\/p>\n
No matter how many transactions must be covered, the bank will charge only one overdraft security transfer or advance fee each day. A fee of $12.50 will be charged for cash moved from a savings account<\/a> or a home equity line of credit. The cost of a credit card advance varies. Interest begins to accumulate from the date the advance is made, depending on the amount of the advance.<\/p>\n Overdraft protection used to be automatically added to all checking accounts by consumer banks, but now you must request it or explicitly accept it. Overdraft protection is used when there is insufficient money in your account. Alternatively, you may have sufficient funds in your account, but they are on hold and not yet accessible for use.<\/p>\nHow Overdraft Protection Works<\/span><\/h2>\n