Overdraft Courtesy Pay Courses

Overdraft courtesy pay, or overdraft protection, is a service provided by many banks to protect customers in the event of an overdraft. This service allows customers to make purchases or payments that exceed their available balance in their checking account, but still cover the purchase or payment. Banks will typically cover the amount due and assess the customer a fee. The goal of overdraft courtesy pay is to provide protection and convenience to customers. This protection, however, does come with a cost in the form of a fee. For example, if a bank covers an overdraft of $100, the customer may be charged a fee of $35. Additionally, if overdrafts occur too often an account may be closed by the bank. When deciding if overdraft courtesy pay makes sense for you, consider your overall usage patterns. If you find yourself consistently overdrawing your account, the fees associated with overdraft protection can start to add up. There are other options available to help manage your account without the fees. Many banks offer savings accounts, lines of credit and other services that can be used in conjunction with your checking account to reduce overdraft fees. Before opting in to overdraft courtesy pay, look into other options like a savings account or line of credit and ensure you’re aware of all fees associated with overdraft protection. You can also contact your bank to get a better understanding of the charges. Understanding the full cost of overdraft protection can help you make the best decision for your financial goals.