Recently I was really surprised to see that I was charged a monthly overdraft fee on one of my accounts as I have absolutely no use for service like these. As well, I don’t remember enlisting into a monthly fee service for this. After contacting the bank I was told the following:
“Effective as of August 2014, the monthly fee for your overdraft protection (Standard) has changed to $4.00. Please note that this change was communicated in recent months by letter, Online Banking messages and on your eStatements. Your current overdraft protection option covers unexpected shortfalls in your account, up to your approved overdraft limit. A monthly fee of $4.00 applies with this option and allows you to take advantage of your current Overdraft Protection at your convenience, up to your approved limit.”
When I think about it, I probably agreed to this like ages ago because the bank representative probably told me that it didn’t cost anything. But as you can see here things change. What I did find a little funny about this is that apparently the selling point of an overdraft service is to prevent you the embarrassment if you were to take more money out of your account then you already have.
I was thinking, you would sure pay a lot of money over time for this. If anything, it’s almost like it is better to not have it period so that this will force you to keep updated with how much money you actually have in the account. I only remember this once ever happening to someone where he wrote me a cheque and it bounced due to the lack of funds. For him it was embarrassing more because he kept mentioning how money is never an issue in his life.
I suppose this shows too that for many things even though it is free now it can easily not be later on. So if you don’t need it you may want to simply pass on it.