What is Citizens Bank Overdraft Fee?
Citizens Bank, like many other financial institutions, charges overdraft fees when your account balance is insufficient to cover a transaction. These fees can add up quickly, so it's important to understand how they work and how to avoid them.
What is an Overdraft?
An overdraft occurs when you spend more money than you have in your account. For example, if you have $100 in your checking account and you try to make a purchase for $150, your account will be overdrawn by $50.
Citizens Bank Overdraft Fee Structure
Citizens Bank charges $35 for each overdraft that occurs. There are some key things to keep in mind:
- Overdraft Protection: Citizens Bank offers overdraft protection, which can help you avoid overdraft fees. This involves linking your account to a savings account, line of credit, or overdraft protection line. If you have overdraft protection in place, Citizens Bank will attempt to cover the transaction using your alternative funds source, which can help prevent the overdraft fee. However, you will still be charged interest on any funds withdrawn from your alternative source.
- Recurring Transactions: If you have a recurring bill payment or automatic withdrawal that causes an overdraft, Citizens Bank will only charge the $35 overdraft fee once per day, even if you have multiple transactions that go through.
- Mobile App: Citizens Bank's mobile app allows you to set overdraft alerts to notify you when your account balance is low, giving you a chance to prevent an overdraft.
Ways to Avoid Overdraft Fees
- Keep Track of Your Balance: Use online banking, mobile banking, or your bank statements to track your account balance. This can help you avoid overdrafts by ensuring you have enough funds to cover your transactions.
- Set Up Alerts: Use your bank's mobile app or online banking to set up alerts that will notify you when your account balance falls below a certain level.
- Consider Overdraft Protection: If you're worried about overdraft fees, you can enroll in overdraft protection, which can help cover transactions when your account is overdrawn.
- Don't Rely on Overdraft Protection: Overdraft protection is a helpful tool, but it shouldn't be considered a guarantee that you can spend more than you have.
- Budget Carefully: Creating a budget and sticking to it can help you avoid overdrafts by ensuring you have enough money to cover your expenses.
Overdraft fees can be costly. Understanding Citizens Bank's fees and taking steps to avoid them can help you save money and keep your finances in check.