Overdraft protection is designed to cover your purchases if your account dips into the red. Let’s say you’re at a restaurant with friends and you have $100 in your checking account. You eat dinner and pay, only to find your electric bill cleared earlier than anticipated, so your account is now in the red. With overdraft protection, the difference is covered, but you’ll be charged a fee for that coverage.
Overdraft protection is available for emergencies, and that’s how you should think of it. Unfortunately, that $35 dinner will now cost you more because of the overdraft fee. And if other charges clear your account at the same time, an overdraft fee will be charged for each of those. These charges can add up quickly.
How can you avoid paying overdraft fees?
• Keep track of your account balances regularly. Using online or mobile banking, you can keep an eye on your balances and transfer money when necessary. Or, before you withdraw from an ATM, check your balance to see where you stand.
• Set up alerts on your account. City National Bank’s text banking allows you to set up alerts for low account balances or when transactions clear. You can get these alerts sent via text message.
• Transfer money before a fee is charged. If you notice your account balance is too low, or that it’s in the negative, transfer funds immediately to avoid (or at least limit) your overdraft fees. You can even link a savings account to your checking to use for overdraft purposes.
• Set up a Pre-Authorized Overdraft Transfer. Once your other CNB account is linked to your checking account, CNB will automatically transfer funds for you. One transfer is posted to your account during nightly processing at the end of the business day. Pre-Authorized Overdraft Transfers are completed in increments of $100 and are subject to a $5 fee.
Overdraft fees can add up, so stay attuned to your account and try to use overdraft service only in an emergency. To learn more about overdraft protection service available at City National Bank, click here, or give us a call at 866-385-3444.
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