Hacker News new | past | comments | ask | show | jobs | submit login

What is an overdraft fee? How much is it? Is it interest?



This is a flat fee assessed if your account goes into "overdraft" to cover a check (or other liability). If your account is set up to do this (pretty standard in the US) rather than a check failing to clear your bank will cover the check and charge, e.g. $30-$50 for covering it. Of course you owe the overdraft amount as well.


I also think it's mostly meant to be a deterrent. When I had BofA, any time I got overdraft I just called and they would take it off, usually without an explanation.


That's true, but as in other areas I think it probably has a lot to do with how much they value your future business.


Overdrafting is when the balance goes below 0. Policies vary by bank, but generally it's a $25~$50 (could be more or less) for _each_ transaction the bank processes while your account has a negative balance.

So looking at this case, let's say you have to go 7 days until this issue is resolved and the employees are given their paychecks. If they got automatic payments they could find that itunes, spotify, bills, etc, automatically charge them during that period. EACH charge might be 45$. Say 5 services do it, boom over 200$ in the hole in fees alone.

(If you're ever in the situation listen to the other comments about how to approach the bank about reversing over-draft fees)




Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | Legal | Apply to YC | Contact

Search: