Courtesy of Mira Hartford (via Flickr)
The Federal Reserve is setting some new rules that will soon protect you from overdraft fees on ATM and debit card transactions. In fact, banks will only be able to charge these fees if you ‘opt in’ and sign up for overdraft protection.
The rules, which take effect July 1, require banks to inform customers of their overdraft services and offer coverage. If you choose not to opt in, and refuse the service, any ATM or debit card transaction that overdraws your account will be denied. In other words – banks can only let you spend what you have. Keep in mind the new rules do not cover bounced checks or automatic payments since many customers want their rent, utilities and whatnot covered just in case. Whether you opt in or not, some good advice: stay aware of your balance and only spend what you have.
Will you opt in and take the overdraft protection? Let us know what you think about the new rules in the comment section.
Now is a great time to track your spending, start a family budget, and get financially fit with The Beehive.
[...] people have closed accounts because of overdraft fees, service charges or minimum balance rules, changes next year will mean more protection for you and your [...]