by Dawn Hawkins

Created on: June 15, 2009

Keeping your checking account in good order is the first step to not overdrafting on it. There are large fees associated with this type of behavior. The bank will charge you up to $35 every time they receive a check that you don't have enough money to cover. Other penalties include closure of the account if you don't get the money in by a certain date or if you make a habit of overdrafting the checking account.

Here are some tips on how not to overdraft your checking account:

Using the Debit Card

Debit cards are much more convenient to use than checks. In fact, that is how most people conduct business today. Be careful though. You should write every transaction down the minute that it takes place. The world is in a big hurry but this is one time that you can't afford to rush. Keeping every detail written down immediately will keep you from forgetting about it. Forgetting about a transaction that you made is nearly a guarantee that you will overdraft the account at some point before you get your bank statement in the mail. This will leave you confused and it will be much more time consuming to figure out the problem.

Double Check

When you subtract the amount of the check or debit purchase, double check it to be sure that it is right. There is often a small mistake. Even the smallest of mistakes can cost you an overdraft to your account. Another common mistake that people make is adding instead of subtracting and vice versa. Do the math at least twice to ensure that it is correct. If it doesn't seem right, chances are , there is a mistake somewhere. It is better to find it now rather than waiting for the statement. A $35 fee isn't worth procrastination.

Balance

You should balance your checkbook once a month to ensure that everything is correct. When you receive your bank statement in the mail, compare all of the deposits, charges and transactions that have been made to make sure they match your checkbook entries. This will give you a better idea of what you truly have available to spend.

Use Cash

Many people may have forgotten what actual cash looks like because they simply use the debit card or checks. Paychecks are often deposited directly into the persons account and cash never really enters the picture. When you are shopping, it is a good idea to use cash rather than a card. This keeps you from forgetting to write down transactions. It also keeps you from spending more than you have. Once the cash runs out, you are done shopping. This is especially helpful at times that you will be purchasing at several different stores.

Not overdrafting your checking account will save you from costly fees. Banks will sometimes overlook the overdraft once or maybe even twice. When you make it a habit, they will eventually shut the account down. You should also be aware that it is against the law to overdraft because it is writing a bad check to someone. Granted, you may not have meant to do it, but it isn't likely that a business is going to be understanding of that.

If you have over drafted your checking account and can't find the problem, your bank will help you find it. Call them today and get the problem straightened out so that your account can stay in good standing.

Learn more about this author, Dawn Hawkins.
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