How to Avoid NSF Fees

NSF fees are pretty similar to overdraft fees. The difference is that when your account is overdrawn and you get an NSF fee, your payment won't go through (similar to a bounced check). Getting hit with this kind of fee is one of the worst feelings because you're getting charged extra for a payment not going through.

Fortunately, you can avoid paying the dreaded NSF fees if you're diligent. If you were wondering how to get rid of NSF fees or have them waived, here are some ways you can keep more of your money.

Talk to Your Bank

If you've been hit with an NSF fee, it never hurts to talk to your bank and see if you can have it waived. You can do the negotiations yourself if you'd like. Make sure to emphasize that you're a loyal customer and mention that you only infrequently incur NSF fees if that's true. Alternatively, some apps now exist that can handle negotiations for you.

Set Up Low Balance Account Alerts

Low balance alerts are a near-effortless way to monitor your account balance and avoid NSF fees. Most banks let you customize what dollar figure you'd like your low balance alert to be, then choose text, email, or both as your means of receiving alerts. For example, you can customize your alert to text and/or email you when your checking balance reaches $100. You can then avoid spending until you get paid or can transfer more money into your account.

Sign Up for Overdraft Protection

Overdraft protection is a feature many banks offer that lets you link your savings account to your checking account — as long as they're both at the same bank. Then, if you ever try to spend more than you have in your checking account, your bank will automatically transfer funds from your savings account to cover the difference. The purpose of this method is more to protect against overdraft fees, but it may help with NSF fees as well.

Look into Overdraft Lines of Credit

Alternatively, some financial institutions offer overdraft lines of credit. This is a special type of credit line that covers purchases if you lack sufficient funds for the payment. They tend to be around $1,000, although exact limits depend on your credit score.

Move to a Different Institution

If you frequently incur NSF fees, you can always move to an institution that doesn't charge these fees. Your best bet would be to seek out newer online banks and institutions. They have far less overhead than brick-and-mortar banks, so many waive their fees to draw in new customers from traditional institutions.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.

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Categories: Personal and Family Finances

Tags: financial services, financial solutions, nsf fees, personal finance