Why do banks charge you with an overdraft even if your account is still positive after a debit?

If you have enough money in the bank, that will cover the check, you should be OK.

However, there are some banks that are quite sneaky, because if you have had overdrafts in the past, it does show up on their records. With this information at their disposal, and you have a history of overdrafts, and you should happen to write a check for a marginal amount, that practically empties your account, I have seen them charge the overdraft before they pay the check.

Well absolutely now you do not have enough money for the check to clear, because they've already taken the overdraft out. Which means, you now have a check that bounced, and is fast on its way back to whomever you wrote it to, and there will be an overdraft charge on it from them.

Now, if for some reason you happened to be out of pocket when this check shuffling went on, and you were not aware of it, and a day or so passes, it is conceivable that your check will rocket back to your bank at warp speed. Which means, you probably still don't have enough money in the bank, and you will have a second overdraft.

I am not aware if they still have this practice working today, but I do remember a friend of mine experience this very situation about five years ago, and for a $25 check it cost him nearly $115 when all said and done.

I don't know if your bank is one of those that operate this way or not, but I'm pretty sure they do keep pretty good records on overdrafts, so be really careful and not get caught up in the trap.

Banks have some strange rules about the overdraft charges and their rules is designed to maximize their own revenue. For example, Bank of America charged me for two overdraft fees on a single day. There is no doubt that my account is in negative territory after three checks cleared through the bank on the same day. However, if BofA would pay the two smaller ones first, then I would only have one overdraft fee. They advise me that most customers prefer them to pay the largest amount first as those are the important bills, such as mortgage or credit card payments. They did not mention that this would also boost their overdraft fee too.

When I called my bank once because I had money in my account but wasn't able to get any out of the ATM I was told this: even though it says you have a certain amount in there, you pretty much always have some sort of pending charge that has yet to go through. This means that there may be things that you paid for that have not been taken out of your account. I think the bank is just trying to protect themselves and you from fraud and whatnot. Plus if you call your bank to dispute the charge, they are usually pretty understanding about reversing them. And to make a comment on one of the other answers about the ATM fees- if the bank you take money out of doesn't charge money cool but it doesn't necessarily mean that you aren't getting charged for it. Most banks like you to use their ATMs and the fee when you use another banks services is like their little penalty- I mean you can't deposit a check at a bank that isn't yours so why should you be able to get money from a bank that isn't yours?

If your account was "insufficient" before the debit transaction posted to your account, than the banks can charge you an overdraft fee.

You may want to consider if this holds true with your bank.

Contact their customer service department and inquire.

Hope this helps.

God Bless.....

Because banks want to make the most $$ out of you as possible. I had a 20 CENT OVERDRAFT. Bank of America charged me flucking $35.

Because they're quasi-monopolies and can do pretty much whatever they want. They have boardroom meetings in which the question: How can we take more money from people? is always on the agenda. Unless you're willing to live your life functioning with cash, you pretty much have to put up with it, unless you have a LOT of money and can threaten to leave for another bank.

Sometimes there is a mistake. Walk in the bank and talk with the accounting department manager. He/she can credit you if your general management/records look good. Bringing in a balanced check book usually persuades.

THAT is a GREAT question, or why do some banks allow non-customers to have free ATM usage but if you use a different bank they charge you shouldnt they be more loyal to their customers?

^^^^@guy above me; Bank of America is truly retarded. I have an account with them and I went over by .05 cents and they charged me $30...I HATE THEM. As soon as I find another job, I am bringing my direct deposit elsewhere.

If your bank does that, you need to find a new bank.

No, as long as you have money in there you should be okay!