Tips on how to avoid overdraft fees in your bank

The way the economy is going nowadays you are more likely to incur overdraft fees in your bank account; to some people it is clear when your hours at the work place are being cut and expenses pile on, you are more likely not to check your bank account balance. As per the FDIC report it is a $2 billion business annually for the banks.
Your bank probably enrolled you an overdraft protection plan (without your knowledge) that covers check, ATM, and debit card transactions that exceed your balance. Here is the catch, whenever you exceed your balance you will incur at least $30 fee for exceeding your balance, you could get charged such fees if you buy a $1.60 cup of coffee, and there will be a nasty surprise waiting for you when you check your balance.
In August 15 2010 is the last day that banks can charge you overdraft fees without your permission and that is if you have had an account with them before July 1st. That is why you are seeing banks sending you mail, emails to get you to opt in (agree to get charged), according to the consumer reports blog the emails say “It only takes a moment to stay protected” or “We know our customers don’t need the hassle and potential embarrassment of having a debit card purchase or ATM withdrawal denied due to insufficient fund”.
Experts think that consumers need not to opt in for such exorbitant charges, as a consumer you can try other ways that are cheaper for you to avoid getting hit, here are some tips on how to avoid overdraft fees:
1. Balance your checkbook. Use the old ways of balancing your check book, some banks offer online calculators and free ways to reconcile your bank account. Make sure that you don’t rely on available balance when you check your balance at the ATM, there could be other charges that are on the way as banks update their systems after hours.
2. Link your credit card to your checking account. Most of the banks offer this service which will help you not to incur fees if you exceed your checking account balance, the extra amount will be charged to your credit card account.
3. Sign up for online banking and set up low balance alert. If you set up a low balance alert it will send you an alert that you have a low balance (depending on how much you set it to), you could use this alert with your cell phone as most of the cell phones are used for text messages.
4. Apply overdraft protection program, some banks and credit unions offer this service where you will be charged a finance charge, this is only possible if your credit standing is excellent.
5. Opt out overdraft fees completely; it could be the best way for you since you don’t need to spend what you don’t have, when your card declines you may have averted a $30 charge that you don’t even have at that moment.