Always enroll in Overdraft Protection??

[SportBike4Life]

Just got my first overdraft protection fee charges-- 2 actually. Thus, I was wondering if it is always better to enroll in some form of overdraft protection (given that the bank does not charge you for doing so and that you pay off any overdraft amounts the day after to avoid interest fees)??

[takeshi74]

That's a call that you have to make.  Better is always highly subjective.  I'm very careful but I still prefer to have overdraft protection.  YMMV.

---

@SportBike4Life wrote:

given that the bank does not charge you for doing so and that you pay off any overdraft amounts the day after to avoid interest fees

---

I don't have to pay anything unless I exceed the balance in my savings account since it is used for overdraft protection.  That's the other thing -- "overdraft protection" covers a number of options.

[HoldingOntoHope]

Normally banks will offer the option of refusing / returning overdrafts (Refusal if you are using a debit card at a POS terminal) or allowing them either with a backup account as stated above or with a fee and expecting you to make it right. How you want to do it is a matter of personal preference, but you should probably sit down with one of your bank CSR's to make sure you understand what you are getting into.

[buildafico]

id say if you have a sizeable amount in savings and they dont charge you to do it, opt in for at least that protection. that way you get the best of both worlds. my cap1 360 checking let me have an overdraft line of credit, if i use it they charge me a nominal fee and usually its offset by the interest they pay anyway.

[MidnightVoice]

I have a USBank CC which I use for overdraft protection.  One month when my company screwed up my salary payment is saved me a whole bunch of charges!

[Anonymous]

Use a line of credit to cover any potential overdraft. I could use a credit card or a savings account too. Personal choice but I like knowing that there is a backup.

[KoolDev]

Its like having a hard hat, you dont need it till ya bump your head.

Personally, I use it.

[guiness56]

My bank gives automatic overdraw protection depending on the type of account you have.  No CC or another account is needed.  What surprised me is they don't even do credit checks.

The amounts range from $400 to $1000.  They do charge $17 each transaction.  Still not as bad as some that are $35.