Outrageous Overdraft Fees

If you've been reading for a while, you have probably noticed that I'm a huge fan of Navy Federal Credit Union, USAA, and Pentagon Federal Credit Union.  They have always provided good service without any crazy fees and I appreciate it.

Perhaps living in this world of outstanding banking organizations has made me lose a little bit of touch with reality, because I was truly astonished when I read this article today:  Banks Can Manipulate Your Transactions, Then Charge You 1750% Overdraft Fees.  When I first read the title, I though to myself, "What?  That is crazy.  What type of whacko, small bank account is pulling this sort of scam on people?"  After I read the piece, I was even more astonished.  These are big banks, and they seem to think that this is a legitimate business practice.

You certainly don't have to use one of the three banks that I prefer, but be sure to shop around and do your research.  There are plenty of fine credit unions, and a few fine banks, that won't use deceptive practices to steal your money from you.

(And set up overdraft protection – it should be free, and it provides good peace of mind.)

About the Author

Kate Horrell
Kate Horrell is a military financial coach, mom of four teens, and Navy spouse. She has a background in taxes and mortgage banking, and a trove of experience helping other military families with their money. Follow her on twitter @realKateHorrell.

    You are so true about manipulating transactions because you can buy something and go check your account and it states that the money has been taken out when in actually it hasnt so you tend to spend what you don’t have and then they het you with that overdraff or NSF charge. I have both Navy Federal and USAA

  • sailor4you

    NFCU does charge a large overdraft fee and does not pay the transaction. My NEW bank charges a large overdraft fee but at least they will honor the transaction if it isn’t to large.