5/22/2014

Overdraft

Continuing on in our My Money, My Choices journey - we come to overdraft.  I've thankfully never lived in it, but have in the past dipped into a few times by accident.  The cashflow exercise we went through a month or so ago really helped getting this straight so that we weren't having bills automatically debit from the account before pay day.

The great thing though, about banking with Tangerine is their Whoops! Protection...which is their version of overdraft protection.  Everyone, automatically gets 30-day protection to a maximum of $250 - FREE for 30 days.  So, if your account is accidentally withdrawn because of a miscalculation on the dates, you won't be charged for it or suffer a NSF fee.

Now, it is only free to a point.  You'll be charged $2.50 if it takes you longer to pay it back after the 30 days, and every 30 days after that if you fail to get your account balance back into the black.

Gail suggests that the easiest way to ensure you never dip into overdraft is by creating your own OD protection - something that Jordan and I have done for a long time.  Our's is about $1,000 - there's never less than that in the account.


Related Posts:

  • My Money, My Choices - Level 3, Activity 7 & 8 A curveball account...now this is something that Jordan and I have never had...though perhaps it is and we've just been calling it our Emergency Fund.  Gail believes that everyone should have a curveball account to hel… Read More
  • My Money, My Choices - Level 3, Activity 5 & 6In this activity we set up our retirement savings..and automate them (activity 6) I think it's really apt on the tail of yesterday's post about my grandmother in retirement and the post we did about a week ago or so on Level … Read More
  • My Money, My Choices - Level 3, Activity 2This activity is to set up an Emergency Fund...which Jordan and I have...but is it being used properly?  This is what Gail says an emergency fund is for: Needing new tires is not an emergency. Nor is a new roof, that re… Read More
  • My Money, My Choices - Level 3, Activity 3 A couple days ago, I wrote about creating the Emergency Fund, today is about automating it.  This one is really simple - just set up an automatic savings programme.  With a goal of $25,000 it's going to take us a … Read More
  • My Money, My Choices - Level 3, Activity 4The fourth activity in level 3 is getting set up on a company pension plan if you're not already on one - thankfully I am but unfortunately, Jordan's company doesn't have one. Mine is a defined contribution (not defined be… Read More

1 comment:

  1. I keep a balance of 2K to avoid bank fees so it also is my overdraft protection, although we still have that as well but really don't need it. You could say that the 2K is part of our E fund too, but we keep a separate account for that specifically.

    ReplyDelete

Hi! Thank you for stopping by and leaving a message.

Links ♥

Followers