I didn’t time a transfer correctly and it cost me five dollars. Thinking a couple of checks wouldn’t be withdrawn from my Wachovia checking account until today, I scheduled a transfer in from an ING Direct savings account for yesterday to cover the funds. It looks like the checks withdrew yesterday but the deposit didn’t clear until today, so my overdraft protection kicked in. That “service” carries a $5 fee.
I should build a cushion into my checking account rather than play it so close to the line.
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7:57 pm (reply)
Try asking them if they’d waive it, chances are they probably will.
12:14 am (reply)
We have our checking account hooked to our HELOC. In case of an inadvertent overdraft (is there any other kind?), it automatically advances the money to cover it. That way we only have to pay the pennies in interest that accrue before I can rectify the problem. I do sometimes worry, however, that hooking an equity line to a checking account exposes you to a lot of risk if your account is ever compromised.—fivecentnickel.com
12:25 pm (reply)
I’m facing the prospect of a similar timing error, so here’s hoping it works out. Regardless, I suppose to provide some cushion, I should move a little cash back to checking from my nascent emergency fund.
2:35 pm (reply)
Nickel, it’s enlightening that it looks like you don’t have an additional service fee when you tie your checking to your HELOC, but if it’s tied only to a savings account, there’s a charge. I guess they want to make it easy on you because then you’re amortizing your overdrafts.
I had a similar “bad-timing” incident happen about a year and a half ago. I had four $5 charges right in a row, and I found out about it only after they MAILED me the notice of the first one. Well, it costs the credit union or bank to have savings accounts, so I guess they pounce on every indiscretion and get their money from us when they can :)