Finally, the best way to avoid overdraft fees is to be more conscious of your finances. This may not be the most glamorous way to save money and avoid unnecessary fees, but it is by far the most effective. To help you monitor your budget and stay on top of your finances, you can see if your bank offers low-balance alerts.
These alerts are triggered when your checking account balance falls below a certain threshold. If you are not used to keeping a close eye on your checking account, this is a great way to get reminders of when you should transfer more money to your checking account or when it is best to cut back on your spending and focus on saving instead.
Another way to help you stay on top of your budget and avoid overdrafting your checking account is to stay on top of large monthly payments, such as car payments or rent.
When considering large expenses that must be regularly paid, you can check your account balance accordingly.
Make sure you always have enough to pay those expenses.
It is also recommended to add extra money to your account when you need to make monthly payments in case any surprise expenses appear, to avoid overdrafting your card or getting it declined.
Lastly, if an overdraft does occur, be sure to transfer money into your checking account as soon as possible. Leaving your account in the negative for more than a few days can result in even more fees, which is definitely something you want to avoid.