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Released: August 17, 2010

Overdraft fees: How to avoid them

Source: Eileen Ambrose, Baltimore Sun (Free Registration)

Holly Rhodes of Baltimore says she’s willing to pay a fee if she overdraws her checking account, something she acknowledges happens a little too frequently.

But the 25-year-old complains that her bank processes her checks and debit card transactions in a way that’s designed to wring out even more overdraft fees from her. PNC Bank clears transactions from highest to lowest — not in the order they occurred — so her account empties faster and more penalties are incurred. At $36 a pop, overdrafts can add up quickly.

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