Sometimes it helps to see exact numbers.
ING Direct has a handy overdraft fee calculator that can help you get perspective on overdraft costs. It's obviously a marketing move to help win customers, but you can use it for general information as well.
If you ever spend more than you have, it's probably worth running some numbers. The most important thing is to figure out how to manage your spending and income. Then see if overdrafts are making it harder to get control of your finances.
The ING Direct overdraft calculator compares the two types of overdraft charges:
- Flat fees (for example, $30 for each item)
- Overdraft lines of credit
In most cases, an overdraft line of credit is less expensive because you only pay interest on what you borrow. If you're only short a few bucks, the interest costs will be minimal. When an overdraft of a few dollars leads to a $30 fee, the cost is dramatically higher.
[via DepositAccounts]
Further reading: