Important things to know about Preventing Overdraft Fees

Oct 12, 2022Financial Literacy

Bank overdraft fees have been a hot topic in financial services news as of late and this topic continues to make headlines as more and more major banks are changing the way overdraft fees are being handled.  

Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to overall financial competency, whether this is better understanding mobile and online banking or how to use a prepaid card, our curated playlists will provide you with important information.

Preventing Overdraft Fees:

An overdraft occurs when you make an authorized transaction from your bank account in an amount that exceeds your account’s available balance.  This can occur via a debit card purchase, an online payment, ATM withdrawal, or via a check.  Depending on the type of your account, you may be charged a fee when any of the above occurs.  It is important to understand how this occurs to help prevent it from recurring. 

Our Preventing Overdraft Fees module, located in the Financial Foundations playlist, provides eight helpful tips to avoid overdraft fees.  These tips vary from things like doing your own research, so you fully understand the features and fees of your account, to a very specific tip which is considering an overdraft line of credit.  Using this module, you can better understand the specifics of how your account handles any overdraft to hopefully avoid incurring such fees in the future.  Overdraft fees are common but often avoidable.   

The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.

Explore the program today:

*The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.


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