An overdraft happens when you spend more than is in your account. Fees can be expensive, and several can happen in one day.
Ways to avoid them
- Check whether you've opted in to overdraft coverage for debit card purchases; you can opt out
- Turn on low-balance alerts
- Link savings as a backup, if the transfer fee is low or free
- Keep a small buffer that you treat as zero
- Look for accounts with no overdraft fees
If it happens
Ask the bank to waive the fee, especially if it's your first. Many will.
General educational information, not financial or tax advice. Cents and Common Sense isn't paid by any bank, lender or card company.