3.3 Understanding Overdraft Fees Scavenger hunt

What are overdraft fees?

• Fees charged by banks when a customer's account balance goes into the negative

• Fees charged by banks for depositing money into a savings account

• Fees charged by banks for using an ATM

• Fees charged by banks for transferring money between accounts

Overdraft fees typically cost _____.

What can happen if you don't pay your overdraft fees?

• Your information will be sent to ChexSystems

• Your credit score will be negatively affected

• You will be charged additional fees

• You will be banned from using online banking

Which banks have recently reduced or eliminated overdraft fees?

• Discover, Ally, Capital One, and Alliant Credit Union

• Bank of America, Citibank, and Wells Fargo

• Chase, TD Bank, and PNC Bank

• US Bank, BB&T, and SunTrust

What is ChexSystems?

• A reporting system that tracks consumers with risky banking history

• A type of overdraft protection offered by banks

• A prepaid debit card service

• A credit reporting agency

How can overdraft fees be avoided?

• Opting out of overdraft coverage

• Linking an additional account for overdraft protection transfers

• Applying for an overdraft line of credit

• All of the above

Is there a limit to how many overdraft fees can be charged per day?

• No, banks can charge unlimited overdraft fees per day

• Yes, banks can only charge one overdraft fee per day

• Yes, banks can charge up to three overdraft fees per day

• Yes, banks can charge up to five overdraft fees per day

What is the best overdraft coverage option?

• Opting out of overdraft coverage

• Linking an additional account for overdraft protection transfers

• Applying for an overdraft line of credit

• Using a prepaid debit card