Life is always moving and so is money — in and out of your account. With all that movement, mistakes can happen leading to dreaded overdraft fees. These fees can quickly add up, turning a small mishap into an expensive lesson.
In this blog, we provide actionable steps to help you stay in control of your finances and dodge those unwanted overdraft charges.
An overdraft occurs when you try to spend more money than what you have available in your account. There are many transactions that cause an account to overdraft. Here are some examples:
When there’s not enough money in your account to cover a transaction, one of these things can happen:
There are different circumstances that affect the availability of funds in your account.3 Understanding the difference between your actual balance versus what’s available, will prevent you from accidently overdrawing your account and incurring a fee.
Most financial institutions offer overdraft protection for a small service charge. This allows them to move funds from a backup account (usually a savings account) into your checking account whenever there isn’t enough money to cover a transaction.
How Overdraft Protection Works at Peach State:
If you’re trying to use your debit card to make a $100 purchase, but only have $25 in your checking account, overdraft protection will move $75 from your back up account to your checking account. You will also be charged a small service charge of $5. This service protects your account from going into the negative and getting charged additional account fees. Please note this service charges $5 per overdraft transfer.
If you have any questions regarding Peach State overdraft fees or would like to enroll your Peach State account in overdraft protection, please visit peachstatefcu.org/overdraft-protection-options, contact us at 678.889.4328, or visit your local branch.
Before making a large purchase, be sure to check your account first. If your checking balance is low, you can transfer money from your savings to your checking using our online banking or mobile app or use the 24-Hour Telephone Banking Member Line 24/7 by calling 770.338.4180.
No matter how chaotic life gets, the best way to avoid overdraft fees is by staying informed about your account balance. With these financial tools, you’ll be able to keep track of your finances and reduce your chances of experiencing an overdraft fee.
Paying close attention to your accounts gives you the opportunity to act fast. Not only to take proactive measures in avoiding overdraft fees, but to spot suspicious or fraudulent activity. If you notice something off in your account, please contact us immediately.
Bonus Tip: Keep a detailed log of your checking account transactions including debit purchases and written checks. Record each amount, the date, and then calculate a running balance to track your available funds at all times.
Managing your money has never been easier!
If you notice your account frequently dipping close to zero, consider adjusting the timing of recurring bills or automatic payments to ensure you have enough funds to cover them. Spreading out or changing due dates can provide the breathing room your budget needs.
How to Change Payment Due Dates: Contact the companies and financial institutions that you have payments with and ask what their requirements are for changing a payment due date. At Peach State, you may be able to change due dates depending on the payment method and loan type (credit cards and mortgages are excluded). Loans set up through payroll deduction have a due date that coincides with the payroll date. Please call us at 678.889.4328 or stop by a branch for more information.
Keeping a “cushion” of extra money in your savings account can help you cover unexpected transactions and avoid overdrafts. If you find that your checking account is low, simply log onto online banking or use the mobile app to transfer funds from your savings to checking account for free! This gives you peace of mind knowing that you can make a purchase or replenish your account before it becomes overdrawn, so you won’t get charged a fee.
Understanding how to avoid overdraft fees is not just about saving money; it’s essential for maintaining financial health and keeping your budget on track. With the right strategies and use of financial tools and services that Peach State offers, you can confidently navigate your finances.
If you have any questions about which account services fit your financial needs best, please contact us at 678.889.4328 or stop by a branch today!
1 These fees are per occurrence and include all items sent as repeat presentments from the merchant.
2 Fee applies when overdraft is created by check, ACH debit, ATM withdrawal, check card withdrawal, or other electronic means.
3 Understanding Your Account Balance – Your share draft account has two kinds of balances: the actual balance and the available balance. Your actual balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending. Your available balance is the amount of money in your account that is available for you to use. Your available balance is your actual balance less: (1) holds placed on deposits; (2) holds on debit card or other transactions that have been authorized but are not yet posted; and (3) any other holds, such as holds related to pledges of account funds and minimum balance requirements or to comply with court orders. We use your available balance to determine whether there are sufficient funds in your account to pay items, including checks and drafts, as well as ACH, debit card and other electronic transactions. Pending transactions and holds placed on your account may reduce your available balance and may cause your account to become overdrawn regardless of your actual balance. In such cases, subsequent posting of the pending transactions may further overdraw your account and be subject to additional fees. You should assume that any item which would overdraw your account based on your available balance may create an overdraft. You may check your available balance online at www.peachstatefcu.org, at an ATM, by visiting a credit union branch or by calling us at 770.338.4180.