Avoiding Overdraft Fees

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5 Tips for Avoiding Overdraft Fees

Overdraft fees can be a frustrating and costly aspect of managing a checking account. They occur when withdrawals from your account exceed the available balance, resulting in negative balances and additional fees. Understanding how overdraft fees work and being strategic with your finances can help you avoid these fees.

1. Create a Budget and Stick to It

Creating and sticking to a budget is the most effective way to avoid overdraft fees. Allocate specific amounts for each expense category and ensure you do not exceed these limits. Tools like KEMBA's budgeting and money management calculator can help you plan and maintain your budget efficiently. Having funds for unexpected expenses is a great way to cover expenses that exceed your budget.

2. Monitor Your Accounts Closely

Regular monitoring of your account balances is an important step in avoiding overdraft fees. Utilize digital banking tools to keep track of your available funds. This helps manage your balances effectively and avoid spending money you don't have.

3. Link Accounts to Overdraft Protection Products

Linking your checking account to overdraft protection solutions such as a savings account or a credit card can provide a safety net. These measures can cover transactions that would otherwise result in overdraft fees, by automatically transferring funds from a linked account or through a line-of-credit. KEMBA offers specific options like standard overdraft protection and Courtesy Pay, which you can opt into to take advantage of these services.

4. Have an Emergency Fund

An emergency fund consisting of three to six months' worth of expenses is ideal, but any amount can safeguard against unexpected expenses that might result in overdrafts. Start building your emergency fund in a high interest account, like a money market, to cover sudden needs without overdrawing your account.

5. Set Up Account Alerts

Another effective strategy is to set up account alerts. These alerts can notify you when your account balance falls below a certain threshold, helping you act before the balance goes negative. KEMBA offers account alerts which can be easily set up through the digital banking platform.




KEMBA Can Help

Managing your finances to avoid overdraft fees doesn't have to be complicated. KEMBA offers solutions to help you manage your money, like user friendly tools in digital banking to monitor your accounts, overdraft protection and Courtesy Pay options to help give you a safety net in case the unexpected happens.

Explore how KEMBA’s digital banking can empower you to manage your finances more effectively and achieve your goals, by visiting one of our Central Ohio branches, where our friendly associates are eager to assist you. You can also contact our dedicated member service team at 614.235.2395 and select Option 4 to get started.






































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