Starting August 15, 2010 if you overdraw on your bank account, your transaction will be declined and you will not be charged overdraft fees if you did not previously opt-in by July 1, 2010.
However, this rule does not apply to checks or automatic bill payments. You will still be charged overdraft fees for these transactions if you account is overdrawn. Standard overdraft services your bank provides will cover the transaction by charging a flat fee of $20-$35 each time you overdraw your account.
If you have an overdraft protection service your bank will provide a line of credit that is linked to your savings account to cover transactions when you overdraw your account. Banks will charge you a fee each time you overdraw your account.
Using your bank's overdraft protection service may be less expensive than using the standard overdraft service. Use caution because some banks report overdrawn accounts on your credit report.
If you did not opt in by July 1, 2010, it may not be too late. If you have been a good customer of your bank, contact them and ask if you can still opt-in to their debit card program.
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