That said, there may still be a fee for this service, but it’s likely lower than the cost of an overdraft charge. This way, the bank will pull funds from your secondary account to cover an overdrawn charge - and help you avoid an overdraft fee. Overdraft protection is a service that allows you to link your main checking account to another account, like your savings or a secondary checking account. If you have a savings account or a second checking account tied to your main account, consider signing up for overdraft protection if your bank offers it (not all do).
Use overdraft protection (link to a secondary account) The bank will return any failed payments to you as “unpaid” - unless you sign up for overdraft protection, which we’ll discuss below. The caveat to this method is that if you opt-out, you’ll have no way to cover a purchase exceeding your available balance. This disclosure is usually in the paperwork the bank provides when you open the account - look for it in the section covering account opening disclosures. That means you can reject automatic overdrafts, preventing you from ever having to pay an overdraft fee in the first place. When you open a checking account, banks may give you the option to opt-in for automatic overdrafts. Use the tips below to avoid paying overdraft fees. Avoiding overdraft fees is fairly simple if you’re proactive with your account and budget.
