dealfinder500

Now that Bank of America (BAC) will assess overdraft fees 10 times a day instead of five, Felix Salmon takes on the scandal of the charges, which are raking in $30B for the banks: The median amount triggering overdrafts is $36, meaning implicit "loan" interest in the thousands of percent, resulting in an unconscionable "tax on poverty."

I have overdrafted my bank account a few times (mostly when I first started using it) and I know from experience that most banks will work with you and cancel the fees if you talk to them (and you don't threaten them - "you get rid of these fees or I'm out of here" - they'd probably rather you did leave).

Most banks also do allow you to tie in a savings account as overdraft protection. The main bank I use now (ING) will actually cover the amount (up to a certain amount) and charge you interest.

When you open a bank account you know what the penalties are for writing a check for more than you have in there. If you don't agree with the terms, then don't open the account - it's as simple as that.

I remember a lady telling me recently how she racked up $500 in overdraft fees from her bank. She was waiting for her tax refund to show up in her account. At her work there was an ATM machine and so she was checking her balance every 5 minutes! The ATM wasn't owned by her bank and so she was charged a $3 fee each time she accessed her account. She soon was overdrawn but kept checking, and before you know it she was overdrawn for almost $500. I felt sorry for her but really it was her own stupidity. The bank did end up getting rid of the overdraft fees.