Find a Bank With No Overdraft Fees



If you were a parched traveler in the middle of a hot desert looking for water, you can imagine what a welcome sight a lush oasis spotted in your path just up ahead would be. That is exactly how jaded bank customers who have been paying too much money in overdraft fees to their bank each month feel when they find a no-overdraft-fee bank: a sense of pure relief.

Why We Pay Too Much in Overdraft Fees

Banks bring in over $25 billion each year in overdraft fees alone. That is “billion” with a “b.” Guess who is footing the bill? Average citizens just trying to scrape enough money together each month to pay bills and get by, that’s who. If asked, most people would agree that they do not feel they need to help banks out financially in this way. (Banks are already getting plenty of help as it is).

But, what exactly brought us to the situation with overdraft fees that we find ourselves in now? How is it that banks can be making such a killing in fees? The answer lies in the relatively recent rise in two related banking phenomena: overdraft protection programs and the debit card.

Overdraft Protection Programs Are Not Your Friend

Overdraft protection programs certainly sound friendly enough. When they were introduced about a decade ago, most consumers took them for what the name implies: a way for the bank customer to be protected from checks and other charges “bouncing” due to insufficient funds in the accounts. And, in a way, this understanding is accurate: these programs do indeed protect bank customers from having their checks bounce or debit card transactions rejected.

However, that’s where the “protection” ends. You see, even though your bank will cover those charges for you, they will also turn right around and charge you an overdraft fee for the trouble. These fees usually range from $25 to $35 or more. That means that just three overdrafts in a month can cost you over $100!

Debit Cards Make Things Worse

What really has made the whole situation more difficult is the rise of the debit card. Debit cards that are attached to a checking account are so convenient to use. After all, it is so easy to make a charge on your debit card for the goods and services you need. But here is the catch that most consumers don’t know about: your debit card transaction will be honored by your bank, even if you do not have sufficient funds to cover it.

Now, this sounds like your bank is doing you a favor, but remember, when you have overdraft protection in place, the result is – ding – yet another charge to your account. These can really add up fast, putting you more in the hole. The whole situation is set up to basically invite more overdraft charges into your life.

How to Find a Bank with No Overdraft Fees

If you want to find a bank with no overdraft fees, check out these tips:

1. If you live in the U.S., make sure that the bank is FDIC-insured. This means that, even if they were to go under, your funds would still be safe.

2. Choose a no-overdraft-fee bank that allows you to sign up online.

3. Make sure the bank gives you access to a nationwide ATM network so you have ready access to your cash.

Once you find your no overdraft fee bank, you will be glad that you made the switch. The monthly savings will be noticeable right away, since you will never have to pay an overdraft fee again!

Posted in General at February 1st, 2010. No Comments.

Student Debit Credit Cards






A debit card is a great way for any student to be able to receive money from their parents while they are away from home at college. The debit card with one of the major logo’s like Visa, MasterCard, Discovery or American Express can be used just about everywhere there is an ATM machine. These cards are usually accepted by all major retail businesses and at hotels all around the country. Many times students are able to make reservations on airlines and book their hotel room by using the debit card. The debit card is very popular among students and parents since it gives both the opportunity to control the spending and keep track of how the money is best spent.

One of the nicest features about a debit card is that when you have obtained the card from your bank it is very easy to turn this card into a credit card where the student has access to cash when it is needed. Many times the bank will allow charges to go through even though the cash limit has been drawn against the account. It is wise not to depend on that unless you have made your card into a debit/credit card.

You can secure your card very easily by opening up a savings account that will guarantee funds in case of an overdraft. Most banks are very happy to let you go over if they have some secured funds in a savings account that they can transfer out to the card. You will pay a fee for this service but it is great to have especially when you are traveling.

Posted in Credit Cards at October 3rd, 2009. No Comments.

The Disadvantages of Student Credit Cards






Traditionally there have been two groups of people who have always found it very difficult to get access to credit cards. These two groups are listed below:

· People with no, or very little income

· People with negative credit histories

These two groups would have found it next to impossible to get approved for credit cards in the past. However, nowadays it is becoming easier and easier to get your hands on a credit card and accordingly, these groups are finding it easier to get access to credit cards.

The reasons for this are that the competition in the UK credit card industry has increased dramatically in recent years. As more and more players have entered the market, it is now possible for almost anyone to get a credit card. Many credit card providers from the US have entered the UK credit card industry while at the same time, there are internet and other non traditional providers who are also all fighting for a share of the lucrative UK credit card market. As a result they are willing to lend to more and more people who in the past would have been regarded as simply too much of a credit risk.

What this means for students is that while in the past they may not have been able to get their hands on a credit card, it is now relatively easy for them to do so. This has many advantages for students as it means they have a means of paying for goods and services online that do not accept the more common debit cards that students have had to limit themselves to in the past. The other main benefit of student credit cards is that they can use them while abroad travelling and this no doubt is a welcome convenience for the student population.

There are disadvantages to having a credit card as a student however. The main disadvantage is that it is very easy to get into credit card debt very quickly. Frequently the spending limits on student credit cards are thousands of pounds and any student who spent all of this would be finding it very difficult in deed to get the money paid off. At the same time, with interest rates among the highest in the lending industry, any student who does rack up a high credit card debt will find the debt increasing rapidly at such a rate that it will surely be unmanageable without drastic steps.

The other disadvantages of student credit cards are dwarfed by the risk of getting into debt problems and therefore, if you think there is any chance that you will not be able to handle the responsibility of a credit card and keep your spending under control, then probably a student credit card would not be the best idea in your current circumstances.

Please remember, using a student credit card is not always a bad idea, taking out a student credit card at a time when you have no previous credit record may be a good idea. This would enable you to build up a healthy credit record, so when you are finally ready to apply for a better credit card that comes with better offers, there is a higher chance that your application will be successful.

Posted in Credit Cards at February 9th, 2009. No Comments.

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