this post was submitted on 23 Oct 2023
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Funny

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[–] [email protected] 27 points 1 year ago* (last edited 1 year ago) (1 children)

No because 12%(?) interest on overdrawing your account by $1 is a lot less than a $35 flat fee. If you overdraw your account you’re basically asking for a loan for the negative balance. It makes more sense to charge like you would for a loan.

I had a bank with “overdraft protection” before. It was basically a $500 line of credit that was activated if you overdrew. The interest rate was terrible, though.

[–] [email protected] 8 points 1 year ago

To me that’s reasonable. If the interest was 20%. That’s better than the fee. The fee if calculated at an interest rate is robbery.