In today’s world, it is not always easy to keep an eye on your bank accounts and ensure that all of your expenses are being managed properly. Thankfully, in the event that an unexpected fee is assessed due to an overdraft, there are a few ways that you can go about getting that money refunded. This can be an important step in helping you to preserve your financials and get on track. In this article, we’ll outline some tips and tricks you can use to get overdraft fees refunded.
What is an Overdraft Fee?
Before launching into the ways you can get your overdraft fees refunded, it is important to understand what an overdraft fee is and how it is assessed. An overdraft fee is a charge from your bank or other financial institution that is issued when a personal checking or savings account is overdrawn. Generally, this means that a check has been written or an automatic withdrawal has cleared with an insufficient account balance.
When an overdraft fee is assessed, it is typically in the form of a flat charge and the amount can vary by institution. Along with the overdraft fee, some institutions may also assess a non-sufficient funds (NSF) fee, which is in addition to the overdraft fee for any payments that the bank declines due to the overdraft.
How To Get Your Overdraft Fees Refunded
Now that we have discussed what an overdraft fee is and how it is assessed, we will turn our attention to the steps you can take to get your overdraft fees refunded. While every financial institution’s troubleshooting process may vary, we’ll provide an overview of the best practices for refunding overdraft fees.
- Appeal for a Refund
Your first step should be to contact your financial institution and request a refund of the overdraft fee. Typically, the customer service team will be more than willing to work with you to find a mutually beneficial solution, such as waiving or refunding the overdraft fees in order to retain your business. The key here is to be polite and professional and be sure to ask how they can help you in spite of the overdraft episode.
- Set up Overdraft Protection
If you are hoping to avoid overdraft fees in the future, you should consider setting up overdraft protection. This involves linking a savings account, credit card, or line of credit to your checking account to cover transactions in the event of insufficient funds. Setting up overdraft protection can help you to avoid incurring overdraft fees in the future and is a great way to kick-start your efforts in improving your financial literacy.
- Request for an Extension
In some cases, your financial institution may be willing to extend the grace period for an overdrafted account, particularly for customers that have a good standing with the bank. This can provide some valuable relief as it will afford you more time to replenish the account balance and avoid facing an additional fee or even having the account closed. If you find yourself facing this issue, always remember to remain polite and courteous and ask how they can help.
- Leverage Online Banking Tools
Many banks and other financial institutions now offer their customers some powerful online banking tools that can help them to ensure they never pay an overdraft fee again. For example, the ability to set alerts to notify you when your funds are running low or rule-based transfers that can help you to more effectively manage your account’s balance. Using these tools in combination with your traditional budgeting practices can be an effective way to avoid overdrafts altogether.
- Open a New Account
If you have exhausted all of the other options and it appears that a refund or extension is not likely, your last resort may involve opening a totally new account. This option is especially attractive for customers that do not have the best standing with their current institution. An added benefit of this strategy is that it allows you to review the deposit and overdraft policies of other financial institutions and shop for the account that best suits your needs.
Between financial obligations, bills, and expenses, it can be easy to unintentionally find yourself overdrawn from time to time. Thankfully, with the information provided here, you now have the tools you need to successfully get your overdraft fees refunded. We encourage you to use our tips and tricks outlined in this article to make sure that your financials stay on track and you get your overdraft fees returned.
