Avoiding those dreaded overdraft fees

Post contributed by Shirley Duggan, SVP Deposit Operations Manager and Julia Ellakkis, Team Leader/Fraud Analyst Electronic Banking Officer.

You buy a cup of coffee, then check your bank account and realize your balance is negative $2.80. Now, you think that delicious cup of coffee is going to cost you $37.50 because you’re going to get charged $35 in overdraft fees.

Like most people, you’ve heard the cringe-worthy phrase: your account is over-drafted. It’s an unfortunate situation but happens to the best of us.

Thankfully, at Belmont Savings, if your account is overdrawn less than $5, we’ll waive your overdraft fee. In addition, as part of the Belmont Savings Deposit Operations Team, we work with customers who have over-drafted their accounts, offering tools, programs and resources to help you avoid paying fees.

  • Text Message Alerts – These are a great way to avoid overdrafting your account. When those big sales come along, before you head to the mall, text BAL to find out what you have to spend. You can set up warning alerts to have us text you when your account balance reaches a certain amount. With this information, you can avoid overdrawing your account and do some worry-free shopping.
  • Linked Savings Account – This lets you cover the overdrafted funds with your own money. When you overdraw your checking account, funds are automatically transferred from your savings account to cover the overdraft, subject to the savings account balance. Monthly maximum transaction limitations apply, and a fee will be charged for each transfer.
  • Overdraft Line of Credit – This is a revolving credit product that automatically transfers money to your checking account when you overdraw, subject to your credit limit. You must apply and meet credit eligibility requirements. An annual fee is charged, and interest will accrue on the outstanding balance of the line of credit.
  • Overdraft Privilege. Picture this scenario.While you’re driving at night, you run low on gas. You know you don’t have enough in your account to cover the cost of filling up your gas tank but it is essential. With Overdraft Privilege, your card will accept the overdraft of your account as opposed to denying the transaction. Overdraft Privilege is an alternative to the Overdraft Line of Credit available to customers in good standing who have certain types of accounts. Ask your Belmont Savings banker if you qualify.

Overdrafting is typically an oversight and not an intention. No one should ever pay $37.50 for a cup of coffee, no matter how good it is. To learn more about your options, call the Deposit Operations Team at Belmont Savings Bank at 617-993-1400 option 3. We’ll help you find the program that works best for you.


This blog post is the opinion of Belmont Savings Bank and is not to be taken as financial or investment advice. For personal financial advice, please consult a financial advisor.