are bank overdraft fees logical?

[savafan]

I could have also titled this "Why I hate Bank One".


I'm just curious, but does it make any sense for banks to charge you [B]MORE[\B] money when you already don't have enough in your account?

For example, apparently I went over the limit of what was in my checking account by using my bank card as a credit card, but I really needed to eat lunch one day last week. So, I pull through a McDonald's drive thru and order two filet-o-fish sandwiches, and a large milkshake. The total comes to $6.59. However, my bank sees fit to charge me an extra $180 for having insufficient funds, so my two fish sandwiches and milkshake end up costing me $186.59. I also needed gas to get to work that day, so I put $15 worth in my tank, which actually ended up costing me $75, once again for insufficient funds. And, does it really make sense for a bank to charge you for using their ATM when you are an account holder at their bank? I mean, should you have to pay $1.50 for using their ATM anytime you want to withdraw money from their bank where your account is at? Not only that, but does it make any sense at all for them to charge you $1.50 for doing a balance inquiry on your account at their ATM? GRRRRRRR......


Okay, thanks for letting me rant. I really do feel better now.

[TRF]

preach it. It's not like we get to charge them for using our money.

and they do ya know.

i despise banks.

[RBA]

You need to get a bank that provides overdraft protection for their customers. Or you can try a credit union and a lot them have that.

Some will pull from your savings account before giving you the overdraft loan.

[Jaycint]

Wow that seems like a ridiculously high overdraft fee. The couple of times that I have gone over they hit me up for like 25.00. I use US Bank for what it's worth. Only time they hit me up for an ATM fee is if I use a non-US Bank ATM though, never heard of a bank charging for using their own ATM.

[Reds4Life]

preach it. It's not like we get to charge them for using our money.

and they do ya know.

i despise banks.

You get paid for the banks use of your money, it's called interest.

[reds1869]

US Bank is excellent. They have actually reversed overdraft fees for me simply becaus I asked and have been with them a while. Bank One, however, is Satan...they raised my credit card interest rate by TEN points "just because." Yes, that was their actual explanation!

[Jaycint]

US Bank is excellent.

I'm really happy with them as well, and this is coming from someone that is pretty picky about their banking.

[RosieRed]

US Bank is excellent. They have actually reversed overdraft fees for me simply becaus I asked and have been with them a while. Bank One, however, is Satan...they raised my credit card interest rate by TEN points "just because." Yes, that was their actual explanation!

US Bank has also done the same for me.

[TRF]

You get paid for the banks use of your money, it's called interest.

i don't get interest on my checking account, so no, i don't.

[Ravenlord]

my bank won't let use a card if it'll take you to a negative number. as well, if you have automatic end of month billing that takes you negative, the overdraft fee is $10.

[Reds4Life]

i don't get interest on my checking account, so no, i don't.

That's because the bank isn't lending out the money in your checking account. Commercial checking accounts are considered time deposits, a liability on the banks balance sheet. Liabilities don't "make money" for the bank. Savings deposits, on the other hand, are assets. Assets can be lent out, thus you get paid interest for the use of your money.

[DoogMinAmo]

Bank of America once charged me 35 bucls for overdrafting $0.69 yeah, that's right, 69 cents cost me 35 bucks. you would figure at some point there would be some sort of leniency. Like maybe an overdraft of up to ten bucks is covered for 48 hours, and then you get charged. I supposed this is what overdraft insurance is, but to me it is common sense.

[LawFive]

Not to pick on anyone specifically, but where is the personal responsibility in all this? If you don't have it, don't spend it.

[KronoRed]

Not to pick on anyone specifically, but where is the personal responsibility in all this? If you don't have it, don't spend it.

I don't know about savafan but sometimes it's the bank and strange stuff that causes overdrafts

Example at my old bank one time I used my debit card to pay some bills online and do a few other things, these show up as holds, fine..BUT..then they cleared but still showed as holds, basically meaning everything was taking off the available amount twice, throwing the account into - and getting an overdraft fee..it was a random thing, but it was not me or my wifes doing that caused it.

Overdraft insurance, good to have

[RosieRed]

Savings deposits, on the other hand, are assets. Assets can be lent out, thus you get paid interest for the use of your money.

I don't get interest on my savings. Wait, maybe I do. If I do, it's like twenty-five cents a month. Of course, I don't have a whole lotta money in there.