The Federal Reserve recently proposed rules that give bank customers more choices when it comes to overdraft programs. The “opt-in” rule would require banks to ask you if you want to participate in their overdraft programs rather than singing you up automatically.

The Fed is accepting public comments on its proposed rules until March 29, so if folks are frustrated with overdraft fees, tell the Fed you want a choice! Without public support, the proposed rules may not be enforced.

The Center for Responsible Lending has set up a page to get more information, and to help you send a comment to the Fed: http://ga3.org/campaign/no_gotcha_fees

Also Grant, you would think that Overdraft fees would keep people from overdrawing their accounts, but it doesn’t really work. My bank charges 25 to 35 dollars per transaction that posts negative. This can easily add up to HUNDREDS of dollars in fees, yet I see habitual offenders all the time!

Also, a fee a lot of people don’t realize can happen is a withdrawal limit fee from your savings account. There is a federal regulation that limits the number of withdrawals you can make from a savings account to 6 per statement cycle. Some banks have actually lowered that number to 3 or 4 per cycle. The fee for going over this limit is 12 dollars at my bank, and if you go over the limit enough your interest earning savings account will be converted to a non interest earning checking account. Afterall if you are taking money out more than 6 times you are using it like a checking account.

Also Grant, you would think that Overdraft fees would keep people from overdrawing their accounts, but it doesn’t really work. My bank charges 25 to 35 dollars per transaction that posts negative. This can easily add up to HUNDREDS of dollars in fees, yet I see habitual offenders all the time!

Also, a fee a lot of people don’t realize can happen is a withdrawal limit fee from your savings account. There is a federal regulation that limits the number of withdrawals you can make from a savings account to 6 per statement cycle. Some banks have actually lowered that number to 3 or 4 per cycle. The fee for going over this limit is 12 dollars at my bank, and if you go over the limit enough your interest earning savings account will be converted to a non interest earning checking account. Afterall if you are taking money out more than 6 times you are using it like a checking account.