Sep
27
Why Bank Overdrafts May Be a Bad Deal For You?
Filed Under Business Finance, Finance General, Financial Planning | Leave a Comment
It is always a surprise to many as to how banks often run in the green. This is purely because of certain aspects like floating money, transfer check delay and bank overdrafts. One fails to understand that overdrafts cut incredulous interest rates.
Generally, banks say to you that you are a valued customer of the bank and your overdraft limit has been raised. This means that even if your fund status is insufficient to get a check cleared, if it is within your overdraft limit, you will get it cleared. The catch lies there only.
Overdrafts cost you huge interest rates and offer you very short time to repay. This may be a good idea for black marketers or those who deal in fast money and may have sudden cash crunch. But for salaried employees, these are a curse. Banks also care to clear your largest amount checks to extract the maximum from you and often inform you leisurely.