Your checking account has probably changed a lot in the last few years. One of the biggest changes was an overhaul of overdraft fees: banks had to get your permission to allow you to overdraw your account (and charge subsequent fees).
Unfortunately, consumers are still confused about overdraft protection. People still pay hefty fees, and they choose account features that aren't in their best interests.
The Pew Charitable Trust suggests that bank communication is the problem. Disclosures are extremely long and not very clear. When you've got a million things to do in a day, are you really going to read that 69 page document about your checking account? In addition, consumers don't always know all the options -- an overdraft line of credit or automatic transfer from your savings account may be available, and it'd cost a lot less.
If you're paying $35 overdraft fees, figure out a way to stop. The most important thing to do is to manage your account, but you should also research alternatives to paying high fees.
Further reading:
- Consumerman: Banks still gouging customers with confusing overdraft rules
- How to Void a Check
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