How Do I Avoid Overdraft Fees? 5 Steps How.

Bank overdraft fees can really add up fast. Some banks charge as much as $39 if you overdraw your checking account, which can wreak havoc on your bank book if you don't get it under control.

But new rules are underway to curtail the overdraft fees that banks and last Thursday the Federal Reserve released a new rule to prohibit banks from automatically enrolling customers in overdraft protection programs, which charge fees when consumers spend more than they have.

The new CARD Act is going in effect soon and rightly so, but should we really need to put the Kibosh the overdraft fees banks charge.

People do make mistakes, but you really shouldn't be overdrawing your checking account. If you are spending more than you make and intentionally over draw your account you deserve to pay the overdraft fees. The banks do make a ton of money from others misfortune, but you should think of it more as a deterrent from you overdrawing your account rather than the bank is just out to make money. I charge a $50 a penalty to my renters for being late on paying their rent, but I don't do it to make money, although I have, it is used as a way to make people think twice about being late the rent.

So are you tired of the those pesky overdraft fees the banks charge? Here's what you can do to help prevent that from happening.

Keep a buffer in your checking account

Keep an extra cash cushion in your account at all times so you won't overdraw your account for an emergency expense or if you incorrectly calculate your balance.

Sign up for automatic low balance alerts

If you request it, most banks will alert you via either e-mail or text message, that your balance has fallen below a certain level once you get that alert hold off on additional purchases or withdrawals until you've put more money in your account.

Link your checking account to a savings account

Once you've established a link, your bank will withdraw funds from the savings account to cover the overdraft. This service customarily costs $5 to $10 per transaction, so while it's not free, it certainly beats a $35 overdraft fee.

Consider Cash

Check your balance before hitting up the ATM, and only withdrawal what's available. Yes, it may seem obvious, but it's still a surefire method to avoiding overdraft fees.

Opt Out

While the new regulations will require consumers to opt in, most banks will let you opt out now. You just have to call and ask. But remember, once you've opted out of overdraft protection, your card will be rejected if you try to spend more than you have.

On last piece of advice...balance your check register and just like with your credit cards, don't spend money you don't have!