Overdraft Protection

Many financial institutions offer “courtesy overdraft protection” or “bounce protection” plans so that your checks don’t bounce and you do not overdraw your account. With these plans, you will avoid the merchant’s returned check fee, but you will still have to pay the financial institution an overdraft fee or a bounce protection fee for each item.
Remember that unlike an overdraft line of credit, with bounce protection there is no guarantee that your bank will cover your checks, ATM withdrawals, and debit card and other electronic transactions that overdraw your account.
If your checking account is linked to a credit card or your savings account, when you don’t have enough money in your checking account to cover an item, money is taken from the credit card or savings account to cover it. Ask your bank’s customer service representative for more information.
Finally, with modern technology your check may clear immediately. Make sure you have enough money in your account to cover that check so you don’t incur overdraft fees.