Select an overdraft option. Your bank may offer a service that limits or completely eliminates overdraft fees. Typically you have three such options: Overdraft coverage: a limited coverage in which the bank will honor a check that pulls your balance below zero, anticipating that you will reimburse them in the immediate future. Overdraft protection: the bank will automatically withdraw funds from another of your accounts or grant you a line of credit in the event of an overdraft. A line of credit typically involves interest payments and transaction fees. Complete opt-out: you're under no obligation to have any overdraft protection at all. If you opt out, one or more of your checks could be rejected. In such a case you might be charged an overdraft fee. Ask to have an overdraft charge eliminated. If you very rarely overdraw an account you've maintained for a long time, approach a customer-service representative about having the overdraft fee removed. Many banks will waive such a fee for normally reliable customers. Negotiate if you have a series of overdraft charges. Your bank may consider waiving a series of charges stemming from the same overdraft if you're willing to set up a

savings account for automatic overdraft protection. As an added incentive you could offer to accept other services with the bank in exchange for eliminating the fees. Avoid relying on your "available balance." It's tempting to accept the "available balance" shown on your ATM receipt. However, that figure does not reflect checks that haven't yet been presented for payment ("outstanding" checks) or bank card purchases that haven't been processed yet. You may also have some automatic payments that will occur within the next few days. Keep your check register up to date. The best way to ascertain your available balance is to keep your check register up to date. Immediately record every transaction so that you have an accurate record of checks that will soon be presented for payment. That will let you know how much money you have available. Find out if your bank or credit union has an app to help you maintain your check register. [2] X Research source Check with your bank about online services. Many banks offer a portfolio of services to help their customers manage money. If you prefer managing your register on paper, do it consistently so that you know that your available balance is

accurate. Balance your checkbook. A pending overdraft fee may indicate that you haven't balanced your checkbook lately. Do this regularly in search of arithmetical errors or failure to record transactions. Include bank card purchases in your register. If you occasionally make bank card purchases, be sure to note them in your register. Such purchases, like checks, often take a few days to clear. Remember that deposited checks, including paychecks, take time to post to your account. It's best to wait a day or two before drawing on those deposits. (The bank can tell you when those funds will be available for use.) Try the envelope system. One way to avoid overdraft fees is to use mainly cash in your transactions. You can do that and stay within budget by using the envelope system.[3] X Research source Take several envelopes and label them according to budget items (gasoline, eating out, groceries, etc.). At the beginning of the month take out cash from your account and put the amount that's budgeted for each expense item in the envelope with the appropriate label. For example, if you've budgeted $100 for gasoline for the month, put $100 in the envelope labeled "gasoline." When you

want to buy something within your budget, do so by pulling the cash out of the appropriate envelope. If it's time to spend $20 for gasoline, pull $20 out of that envelope and use it to pay for your fuel. Create an artificial buffer. Give yourself a cushion in the event something goes wrong or you make an error when balancing your checkbook. Set a lower limit for your balance, and never let it fall below that. For example, you might prefer never to let your account fall below $100 (perhaps $500 if you write a lot of checks or often write big checks). [4] X Research source Some accounts require a minimum balance to avoid fees. Fees for going below a minimum balance are generally smaller than overdraft fees, but they are still an unnecessary expense. Ask your bank or credit union if they have such fees, and what their requirements are for your minimum balance. If you're trying to build up savings, maintain your own minimum balance (above whatever the bank requires), and raise that minimum every month. Besides creating your own insurance against overdraft fees, you'll also be providing a cash cushion, which can help you avoid going into debt in case of a financial emergency or

unexpected expense. Ask about your bank's policy regarding deposits and payments. Some banks will process payments prior to processing deposits. That means if you have a deposit and a payment on the same day, your account could drop below zero if the payment is processed before the deposit. Understand the policy, and schedule your payments accordingly. Look into your bank's policy regarding the crediting of deposits. You might find that corporate paychecks clear sooner than handwritten checks do. Familiarize yourself with the bank's policies about how long it takes certain checks to clear, so that you know when you can expect the money to be credited to your account.