Here are some useful tips on how to avoid overdraft and bounced cheque fees. When you write a cheque, withdraw money from an cash machine, use your debit card to make a purchase or make an Direct Debit bill payment or other electronic payment for more than
amount in your current account, you overdraw your account. Your bank has choice to either pay amount or not. If it pays even though you don't have money in your account, you may be charged an "overdraft" fee. If your bank returns your cheque without paying it, you may be charged a "bounced cheque" fee.
The best way to avoid overdraft and bounced cheque fees is to manage your account so you don't overdraw it.
Keep track of how much money you have in your current account by keeping your account register up-to-date. Record all cheques when you write them and other transactions when you make them. And don't forget to subtract any fees.
Pay special attention to your electronic transactions. Record your cash machine withdrawals and fees, debit card purchases, and online payments. Don't forget about Direct Debit bill payments you may have set up for utilities, insurance, or loan payments.
Keep an eye on your account balance. Remember that some cheques and automatic payments may not have cleared yet.
