Overdraft and Bounced-Check FAQ

How do overdrafts and bounced checks happen?
How can you avoid overdraft and bounced-check fees?
What are some other way to cover overdrafts?

How do overdrafts and bounced checks happen?
When you write a check, withdraw money from an ATM, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for more than the amount in your checking account, you overdraw your account.

How can you avoid overdraft and bounced-check fees?
Keep track of how much money you have in your checking account by keeping your check register up-to-date. Pay special attention to your electronic transactions. Don’t forget about automatic bill payments you may have set up for utilities, insurance, or loan payments. Keep an eye on your account balance by reviewing your account statements each month.

What are some other way to cover overdrafts?
Banks, savings and loans, and credit unions may provide other ways of covering overdrafts that maybe less expensive. Ask your bank about these options before making your choice.

  • Link your checking account to a savings account you have with the bank.
  • Set up an overdraft line of credit with the bank.