Many of you are unaware of what overdraft protection is. Many people enroll in overdraft protection so that they can make purchases even after exhausting their bank funds.
Overdrafts are very similar to loans. It’s helpful for people who spend more than what they have, but this service comes with a price.
Many banks like columbia bank Edison are offering overdraft services. Your bank may not have the same overdraft policies as the other banks. The question is, do you need overdraft protection? Here’s all you need to know about it.
|60 Raritan Center Pkwy, Edison|
|NJ 08837, United States|
|Phone: +1 732-346-1090|
Should I opt for overdraft protection
If you overdraft your account occasionally, then this protection scheme might work perfectly for you. It will protect those individuals who are genuinely in need of emergency funds. None of us can imagine running out of fuel and funds at the same time.
You can use overdraft protection when your paychecks are running late. If you do not avail of overdraft protection, you might get billed an unimaginable amount for a small transaction. In the end, you decide to pay recurring overdraft protection or a high overdraft fee.
Advantages of overdraft protection
- With the help of overdraft protection, you can have a source of emergency funds when you’re out of cash. It can be very convenient for many people. Moreover, it will save you from embarrassment when your transaction is declined.
- You will prefer paying a small amount for overdraft protection rather than paying a large sum as an overdraft fee.
Overdraft protection is a helpful policy and a convenient service to avert steeper fees. You should choose the protection only if you feel that your account may go overdraft sometimes. You must consider your spending patterns and budgeting habits before going for overdraft protection.Read more →