Letting your account go into the negative can happen to the best of us. Sometimes, you might not even realize it until your card gets declined. If you find yourself barely getting by or about to go into the negative, here are some tips that can help you manage those overdraft fees.
Enroll in online banking
By enrolling in online banking, you’ll have access to view your balances, posted transactions, and even some pending transactions. It is good practice that you view your balance every other day. By doing so, you can keep track of your spending and make sure your account is in good standing.
Alerts on account balance
Did you know you can set up alerts through online banking that can let you know that you have a low balance? Most online banking providers offer alert features that notify you when your account balance falls below a certain threshold. You have the ability to set that threshold to whatever you want. By setting these alerts, you can take immediate action if your balance is getting low, preventing a negative balance.
Funds availability buffer
Knowing when your deposits clear and having a buffer can really help you from over drafting. When depositing a check, take into consideration the time and day you make the deposit. Credit unions and banks have a cut-off time from when you can make a deposit that could affect it being available the next business day. This is important to know if you need to make a deposit to pay a bill or write a check. It also helps to have a buffer in the account. This extra cushion can help absorb any unexpected expenses, such as medical bills or car repairs, without pushing you into overdraft territory.
Overdraft Protection
If your credit union or bank offers overdraft protection, understand its terms and conditions. Ask questions if you need more clarification. While it can be a helpful safety net, relying on it can lead to unhealthy habits of overspending. Always aim to keep your account above water. Also keep in mind that overdraft protection can be taken away if misused.
Subscriptions and Automatic Payments
Monthly subscriptions and automatic payments can sneak up on you if you are not cautious. Review these monthly to give you time to deposit money if you need it. This is another reason you should set up your online banking so you can view these. It might also be helpful to review these so you can cancel any unwanted subscriptions.
If you are cautious of your spending and smart with your money, you can help prevent overdrafts. It does require vigilance, planning, and financial discipline to help you avoid those situations but if you stay organized and aware you will be in good hands. Take control of your finances and watch your bank account grow.
If you have any questions or want to learn more about something else, email media@alltrustcu.com.