Here are some good tips to help you manage your checkbook and not get hit with overdraft fees from your bank.
1) Record every transaction as soon as you buy something - This is a hard habit to change but will make sure you are not forgetting to record each check, ATM withdrawal, and EFT transaction that happens in a month. This will also give you an up to date snapshot on your balance.
2) Set a Floor for how low your account can go - pick a specific amount of money as a threshold for your checking account. $100, $200, or $250 for example. If you hit this amount in a month you know you have to step up your diligence on spending until the next paycheck or move money from savings to cover it.
3) Make sure your deposits clear before you spend - many times your deposits show up online but they have not cleared yet. With the Check 21 Act banks are able to clear the checks you write much faster so the old days of working the "Float" have been minimized.
4) If you do get overdrawn, deposit money to cover it - Don't let an overdrawn checking account linger and make sure you include enough to cover the fees or the problem will simply compound.
5) Check with your bank on SMS alert services - Many banks offer services to send messages to your cell phone and email that show you your balance and all transactions from the previous day. They will also allow you to set a minimum balance and automatically alert you when you have gone below that amount of money.
6) Sign up for Overdraft Protection - This will allow your bank to automatically move money from a savings, line of credit, or credit card to cover and overdrawn accounts.
It is also important to note that you can charge items on your debit card even if you do not have the money to cover the expense. This will surely result in your bank charging you an overdraft fee.
