Overdraft Protection Plan Fees for Savings Accounts

As a way to simulate signups for overdraft protection plans some banks have been announcing in spring 2010 that they are reducing the fees imposed for overdrafts, due to start in August. Fees that are customarily tiered, based both on the number of customer incidents and the purchase amount(s) . Even though it is from these fees that banks and savings institutions derive a significant amount of revenue.

Banks are not allowed to enroll customers in these plans by their own accord. But rather, customers must opt-in. Banks that have taken such initiatives toward restructuring their penalty fees include U.S Bancorp, with a proposed fee reduction, and Bank of America, who plans on altogether removing the overdraft fee from customer debit card buys (with other connected details by these companies).

Probably the best cost-free method of maintaining a savings account however is to keep a tight reign on spending and maintain an accurate running account balance. Constantly being aware of the available funds in your account against which checks and electronic debits are issued. While this isn't failsafe, it goes a long way toward avoiding overdraft fees. Checking balances from online savings is handy for this, for helping to reconcile balances and keeping them current and up-to-date.