BANKING AFFAIRS

Detailed explanation-1: -Your account becomes negative when the balance goes below zero. It’s also called an overdraft. This occurs when you make payments that you don’t have enough money in the account to cover. If the bank accepts the payment, your account incurs a debt, making your balance negative.

Detailed explanation-2: -A bank will charge a non-sufficient funds (NSF) fee, also called an insufficient funds fee. The cost of an NSF fee is typically less than an overdraft fee. However, you will have to pay an NSF fee for every expense that you make while your checking account has a negative balance.

Detailed explanation-3: -Your available balance does not include any arranged overdraft you may have set up. If you don’t have an arranged overdraft set up, your account will enter into an arranged overdraft. You need to make a payment in to your account as soon as possible to avoid incurring charges.

Detailed explanation-4: -Banks are entitled to charge an overdraft fee for each transaction that results in a negative balance. These can add up quickly, especially if you’re using your debit card for multiple small transactions in a short span of time. The typical overdraft fee charged by banks is between $30 and $35.