Business & Finance Personal Finance

How Not to Overdraft Your Checking Account

    • 1). Keep track of all of your transactions in a checking account ledger using a pen or pencil. While it is nice to have online access to your bank, not all transactions show up instantly. Therefore, the balance at any given time may not be accurate. Make sure you write every transaction in your ledger as soon as you perform it.

    • 2). Check the balance on your checking account ledger before you use your debit card or before you write a check. If you have enough money in your account to cover your purchase, then go ahead and make it. If not, do not complete the purchase.

    • 3). Call your bank and sign up for overdraft protection. This service will cost you a fee each month, but is worth it if you tend to make several overdrafts each month. Overdraft protection means the bank will pay the difference if your purchase exceeds what you have in your account. With this protection, you will not receive any overdraft fees, just the monthly service fee.

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