What is Bank of the West's Fee for Overdraft?

What is Bank of the West's Fee for Overdraft?

When it comes to managing finances, it's important to understand the fees associated with different banking services. One such fee is theoverdraft fee, which is charged when an account holder spends more money than is available in their account. In this article, we'll take a closer look at Bank of the West's fee for overdrafts.

What is an Overdraft Fee?

An overdraft fee is a charge that's assessed when an account holder spends more money than they have available in their account. This can happen for a variety of reasons, such as forgetting to deposit a paycheck or making a mistake when balancing the account. When an account goes into the negative, the bank may cover the deficit temporarily, but they will charge an overdraft fee for this service.

Bank of the West's Overdraft Fee

Bank of the West charges an overdraft fee of $35 per transaction. This means that if an account holder makes three transactions in one day that result in overdrafts, they will be charged $105 in overdraft fees. It's important to note that this fee is per transaction, not per day, so it can add up quickly.

Avoiding Overdraft Fees

There are several ways to avoid overdraft fees. One option is to set upoverdraft protection, which links a checking account to a savings account or line of credit. If the checking account goes into the negative, funds will be transferred from the linked account to cover the deficit. Another option is to monitor account balances closely and avoid spending more than what is available.

Investing to Avoid Overdraft Fees

Investing in a high-yield savings account or certificate of deposit (CD) can provide a buffer against overdraft fees. By keeping a portion of funds in a separate account that earns interest, account holders can build a cushion that can be used to cover deficits in their checking account. This strategy requires discipline and planning, but it can be an effective way to avoid overdraft fees and earn additional income.

Conclusion

Bank of the West's overdraft fee is $35 per transaction, which can add up quickly if multiple transactions result in overdrafts. To avoid these fees, account holders can set up overdraft protection, monitor their account balances closely, or invest in high-yield savings accounts or CDs. Understanding overdraft fees and taking steps to avoid them can help account holders manage their finances more effectively.