this post was submitted on 23 Oct 2023
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[โ€“] Seasoned_Greetings@lemm.ee 1 points 1 year ago* (last edited 1 year ago) (1 children)

I mean, I get that that's something. But that only sounds very slightly better than overdraft fees in the first place.

"Pay us now, and when you go over it's fine unless it's more than you paid us"

But the thing is, overdrafting that small amount isn't even significant to a bank. They mostly use the ability to overdraft as an excuse to impose a fee. They can and do deny charges that they don't think they can impose a fee for.

So it kind of sounds like your bank just tricked you into paying ~3 of those fees up front with the promise that they won't charge you more unless they have to.

There are banks out there that don't charge overdraft fees at all. Capital one stopped recently. They just threaten to close your account when it sits negative for too long.

[โ€“] PP_BOY_@lemmy.world 2 points 1 year ago

I should probably note that the $100 value was set by me. I could've bonded any amount as overdraft protection but $100 seemed like a safe amount. I don't disagree that overdraft fees are scams regardless, but it's definitely better than the alternative IMO