The average US household paid their bank or credit union approximately $368 in non-sufficient funds or overdraft program fees in 2008, according to a study by Bretton-Woods.
With the average NSF fee equaling more than $29, according to Bankrate.com, even one item overdrawing your account will hurt the pocketbook.
So how can you avoid paying extra fees when you don’t have the money to begin with? Start by balancing your checkbook. Knowing what you have available to spend is the best way to avoid an overdraft. And now there is an easy way to keep track with minimal effort and virtually no math involved.
1. Sign up for online banking
These days almost all banks offer online banking. Ask your current bank if they offer it, or shop around. Many even offer the service for free. Locally, Tri Counties Bank, Butte Community Bank, and others offer free online banking. Some national banks like Bank of America do as well.
2. Keep track of your purchases
This is tough for some people, especially with the use of debit cards. One easy way to keep track without writing everything down is to simply hold on to your receipts. Use one pocket in your wallet to store them all until you need to balance.
3. Use the online banking to verify your activity
Log in to your online banking and periodically check to make sure your purchases have cleared your account correctly. All you need to do is compare the receipts to the listing. With debit card purchases you can typically do this the same day.
The same can be said of deposits, though funds may be held a reasonable amount of time under Federal Regulation CC. Your bank is required to notify you of any delay in funds availability.
If you still write checks, it can take longer to see them clear your account. So keep checking back and don’t forget about them! Until they clear, you will need to subtract the amount of the checks from the balance shown.
That’s it! Now you know how much money you have, you don’t have to pay any pesky NSF fees, and it took minimal time and effort.
