Yesterday we mentioned the Pew Charitable Trust's review of bank overdraft policies. You may wonder if anybody actually overdraws their account anymore (after all, you'd have to opt-in to an overdraft program), and why they overdraw.
Fortunately, that information is available. The Financial Brand makes it especially easy to understand by providing digestible bits of information with easy-to-comprehend graphics. It turns out that 1 in 5 consumers overdrew their accounts last year (mostly young or lower-income consumers). These people didn't do it in purpose, and they say they'd rather just have transactions declined instead of getting whacked with a $35 fee.
What's more, consumers say they don't even know about overdrafts. So, take this opportunity to figure out what's happening in your account: if you're paying overdraft fees, your bank thinks you opted-in to this service. The fees are optional, and you can get your bank to reject transactions instead of dinging you with fees. Talk to customer service at your bank and figure out what the alternatives are.
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