February 09, 2011,
K.C. asks from Texarkana, AR on February 06, 2011
Overdraft Bank Question
Hello Ladies im hoping someone can answer this for me r possibly work at a bank and know for sure. So my bank has $300 overdraft protection which i always go into with my rent check every month. Rent is due on the 1st and i dont get paid till the 8th so the overdraft helps for that week because i am usually 200 short on rent. ( hoping to get this fixed for good and get ahead with income tax soon) So this week we had to pay to get my husbands truck towed which threw me off alil extra. I have enough with the overdraft to cover my check but i get charged 35 in nsf fees on the check and it would put me over my overdraft protection. do you know if the nsf counts towards ur 300 overdraft , will my check bounce bc i dont have enough with the nsf? My landlord was outta town this week and came back this weekend so i know my check will be cashed tomorrow instead of tuesday , i cant ask him to hold it bc i had to a couple months ago and he said he would this one time. My husband just got a full time job ( thank the lord) but doesnt get his first paycheck till the 22nd but this is the last month we will ever go into overdraft again :) thanks for all the help Ladies have a great week
C.A. answers from Atlanta on February 07, 2011
The worse answer you can get from your land lord is NO. I would let him know the situation and that your husband just got him a job but his paycheck won't be there until the 8th and that it would really help you guys out. You are talking about a matter of days and its not like you ask him to do this every single month and from what it sounds like things are looking up for you guys. The worst he can say is no. Then you won't have to worry about the fees involved with your bank-period.
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M.M. answers from Dallas on February 06, 2011
Yes, the overdraft fee will count against the overdraft protection. And, contrary to Sarah B. - the overdraft protection does include a charge of a NSF fee w/ the protection. The protection is a specified amount the bank will cover - that does not mean they will not get their overdraft charge too - banks don't do anything for free. If you have direct deposit with your paycheck, call your bank first thing in the morning, they might work with you.
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A.C. answers from Columbus on February 07, 2011
I agree with Cash_twins. Even if the landlord charges you a small late fee for paying late (and DEFINITELY talk to the landlord now about it, rather than waiting!), that is better that problems with the bank.
Also, if this is a constant issue, talk to your LL about moving the date you pay your rent back a few days. Relying on the overdraft to help you through is a slippery slope that will only get worse.
J.S. answers from Tampa on February 06, 2011
Our bank account has a 500 overdraft llimit, but there have been times that our auto deposits have gone in after our auto payments have come out (the automatic bills that we have taken out monthly) and it went over the 500 by a couple hundred dollars because it was a mort. pmt AND an electric payment. Our bank charged us 2 ISF fees, which were added to the total once the auto deposits were credited, but they DID pay for the bills that were put through. We had also used our debit card at the gas station and written a check for 50 bucks to the school, because we had assumed our deposit had gone in to our account when it was SUPPOSED to, since there was really no reason for a delay. (it was held up due to a weird holiday the beginning of the week, and this was a Friday deposit) Long story short, ALL was paid, and we were only charged 2 fees. I asked the bank why they covered it all since it was way over the 500 overdraft, and they said it was a curtosy to their customers and it was to avoid embarrasment. I believe they do it because they like to get the additional fees for the overdrafts. Now I check our account each week PRIOR to using our card or writing any checks, and also BEFORE our auto payments go through to make sure our direct deposits are in so we can avoid all the fees from the bank. We also set up a savings account to draw from in the event that there is a situation where we need to overdraft the other acct., that way the money is transferred and we don't really get any charges. Good luck! I feel your pain! It is hard to get out of that cycle once you are in it! :)
C.W. answers from Las Vegas on February 06, 2011
Do you have wellsfargo? Each bank is a little different. I don't get why you'd get nsf fees on your check when it should be counted towards your 300 overdraft protection. I asked about wellsfargo because they have direct deposit advance which is like overdraft protection except that it doesn't protect you and they still charge 35 in nsf fees lol. I'd call the bank and ask the question generally (like don't open up ur account info) so you can ask the question but not feel silly for it or anything (if you would anyways).
Congrats on your hubby's job :)
L.T. answers from Oklahoma City on February 09, 2011
have you tried a pay day loan? they are handy when you are waiting on your paycheck to come in. you could get the cash you need and the finance fee may actually be less than your bank would charge for overdraft and or should it happen nsf. it is an option.
J.L. answers from Minneapolis on February 07, 2011
I think it's pretty standard at most banks, if you go over the amount your overdraft protection covers, you will acrue fees, causing your check to bounce. I think alot of people are confused on how this works.
Overdraft is only protection up to the amount specified. So if you have Overdraft protection up to $300, then that is all you are protected up to. So if you go over that $300 dollar limit by even 1 cent, you will be assessed for nsf for that 1 cent you are over, PLUS whatever the bank's fees are for nsf.
In your case, I'd do the math, and be sure to put whatever you'd be short into your account to make sure nothing bounces. Hopefully, you have some loose change around to make things balance out. If this car emergency messed up your budget, letting NSF fees kick in will really foul things up down the road for you, if you're thinking just sucking it up and letting the fees hit, or rolling with the punches is the way to go.
Otherwise, see if you can stop action on the rent check, and just pay it late this month to avoid bank fees. I find bank fees worse than anything. They gouge like crazy. They don't get rich for nothing.
At best, most apartments have a grace period for rent of about a week anyway. Any chance if you took advantage of this, you could find the money you are short somewhere else? Or at worst, call your landlord and maybe he'll cut you slack again.
S.B. answers from Chicago on February 06, 2011
If you have overdraft protection, you shouldn't be receiving NSF fees, that's the point. Your bank probably just has a certain limit as to how far they will allow your account to go negative before they won't pay the checks. Not sure where you bank at, but I used to work for a bank that would allow you to link your credit card (issued by the same bank) to your account (or a savings account or equity line of credit) in order to avoid overdraft charges. The credit or savings acct would be backup and in the event of an overdraft a transfer would be made to cover the deficit plus a nominal fee, and NSF fees were not charged. As long as you had enough in your backup account this works great, but there are a few things you need to know. If you use a credit card the transfer is treated as a cash advance, and the interest is higher for those types of transactions, so you would want to pay it off as soon as possible. Also, unless something has changed with all the new credit card regulations, you are only allowed to have 50% of your credit line out as cash at any one time, so if you've already exceeded that you're out of luck because the transfer will get declined. Your best bet is to go into your bank and speak with a personal banker about what options, credit or otherwise, that you may be eligible for to avoid NSF fees. For this month, I would go talk to your landlord again and let him know your situation and ask if he will hold off on cashing your check again. Explain that you know he is reluctant, but you wouldn't ask unless it was unavoidable, and you certainly don't intend to make it a habit. If you've got a good history of paying on time, no returned checks, and are a good tenant he shouldn't have a problem with it. You may even ask if he could move the due date for rent forward about a week to avoid this situation in the future. The worst he could say is no. Good luck!