Avoiding Overdraft and Fees
Banking Foundations · 10 min
Lesson
In progress
Overdraft fees average $30-$35 per occurrence and can stack up quickly if multiple transactions are declined.
Many banks offer free low-balance alerts by text or app notification — turn these on.
Linking a savings account as overdraft protection can turn a $35 fee into a smaller transfer fee or none at all.
Key takeaways
- Turn on low-balance alerts.
- Link a savings account for overdraft protection.
- Know your bank's grace period, if any.
Glossary
- NSF fee
- Non-sufficient funds fee, charged when a payment is declined for lack of funds.