Bank Overdraft Fees on the Rise

Bank overdraft fees have always been something that everyone with an account has tried to avoid.  Most people have had to deal with these fees at some point or another. The last thing that anyone wants is for that fee to go up even higher.
There has been a study that shows that 14 of the nation’s largest banks have increased their overdraft fees.  Overdraft fees had been stagnant for the previous two years.  With this many of the largest banks upping their overdraft fees one has to wonder are more banks going to follow and raise their overdraft fees as well?
Some banks have changed from the tradition flat rate for overdrawing an account to tiered fees.  The amount at these banks for an overdraft fee will depend on how many times the account had been overdrawn in the past 12 months.  So the more you overdraw your account, the more you will be paying each time. 
Overdraft fees are just the beginning of the higher fees.  Banks are charging rather high fees for payday loans and deposit advances.  These fees are computed the same way they are at a traditional storefront payday lender.  That does not mean the rates will be the same though.
Many banks have changed their policies when it comes to check cashing.   They are now processing and cashing checks in the order they receive them.  In the past they would cash the largest to the smallest.  This changes things for the person with the checking account.  If they money is there for all the checks being written then you are fine.  However, if for some reason the money is not there, instead of the smallest amount coming out last when there is no money, it could be a larger amount depending on when the bank receives each check.
If you are planning on changing banks make sure you know not just the rates, but how their processes work.  This is just as important as knowing what the rates are.  Ask the person you are working with about all the rates, fees, and processes.  Get a notebook and write your questions down so that you do not forget them.  Take the notebook with you, not just so you remember to ask all of your question, but also so you can take notes.
Check out multiple banks.  You may find that one bank can offer you better rates, but you do not like their policies.   That is another reason you should know what their policies are.  Each bank you check out will be different, that is why it is important to compare their rates and policies so you can choose the best bank for you.

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