Monitor Your Money

" There's a new report out suggesting that banks are on track to make more than 38 billion dollars this year from customer overdraft fees. Overdraft charges of course when somebody with draws more than he -- she has in their personal bank account. The research from a firm that tracks bank activity reporting the largest portion of revenue comes from customers who are hurting the most. No kidding. It also indicates that banks have increased charges on overdrafts and credit cards in order to boost their profits joining us now Greg McBride. Senior financial analyst for Bankrate dot com which is a personal financial. Web site. 38. Billion dollars on all overdrafts and they've -- the charges. You know at it invites the question. Are they --"

" Well you know there are people that make that argument I -- I think on the flip side -- the good news for consumers is that these these are completely avoidable and that's the take away here because these these are not gonna come down anytime soon. They're only going to continue to march higher as the years go by -- as consumers. We really have to be on --"

" Well I mean and and the most the highest charges. I want to make the most money financially profits Citigroup -- Wells Fargo JPMorgan Chase. On. And the Financial Times reports this being -- customers could be charged. 35 dollar fee ten times in a single day if they don't know they've overdrawn their accounts and if the customers. I don't paid those fees -- they get charged. Another 35 box so another words like 385. Box in a single day. Because of a single day's over draft I mean Gregg doesn't that sound wrong."

" There are a couple things we need to be aware of here as as consumers first you -- know a number of banks the process your payments. From largest to smallest and that's one way that will trigger more overdrafts. The other thing is that there are banks that use a tiered structure so the first overdraft may cost -- 2829 dollars. By the time to get the second third or fourth. Now it's 33 dollars -- 35 dollars. Each so I you know -- a couple things there you know the other thing is -- online access to your advantage make sure you're keeping accurate tabs under available count ballots especially if he's a debit card. -- you can over draw the count just as easily when you go to -- a four dollar copy as you can't for a larger payment."

" Yeah yeah I was a bank teller working my way through college and it took a nano second back then. To clear up and deal -- an overdraft and for them to -- 35 bucks especially in this computer age politics like that to deal with it. It seems to -- to be absurd but look. What should consumers. Who were in fear of these overdrafts do you give us some advice."

" first pick up the phone call your bank specifically request a link between your checking account and your savings account. Everybody can slip up once and it -- in this case if that happens it's just a matter of moving your money from one account for the other. Not having to borrow from the bank to cover the shortfall that's battle were greatly reduce the cost. Also sign up for email or text alerts if your balance gets too low you'll be alerted. Keep track of those small transactions particularly those small debit card transactions. And then use online access to your advantage you want to make sure that your regularly checking your account. And not just the account balance but more importantly be available account balance that's how much is available for immediate withdrawal at the end of the day that's what really --"

" I thought the Fed was cracking down on unfair practices maybe -- ought to take a second look at this Greg McBride it was great -- thanks so much."