Fees. Everyone pays them. Sometimes because we get suckered into paying them without knowing, other times because they're foisted upon us—we don't really have a choice. Which category does the overdraft fee fall into? Keep reading...
Why banks love overdraft fees
Signing up for overdraft protection with your bank sounds like a good safety net, but in reality, for you it’s just an avoidable expense—and for them, a pretty lucrative source of revenue. Case in point: in 2015, the 628 biggest banks in the U.S. made $11 billion from overdraft and nonsufficient funds fees. (Similarly, these fees also make up a significant part of Canadian banks’ revenue.) HOLY MASSIVE INCOME STREAM, BATMAN.
4 ways to avoid paying overdraft fees
Millennials are one of the biggest groups of people who pay overdraft fees. Here are a few tips on how to avoid being a part of this group:
1. Keep an eye on your bank account so that you don’t spend more than what you actually have.
2. Ditch your bank’s overdraft program if you haven’t already.
3. Sign up for the MogoAccount to get the free upcoming MogoCard. If you want to avoid overdraft fees, we think you should get the Mogo Platinum Prepaid Visa® Card (duh). It doesn’t have a monthly fee like a bank account, is beautifully designed, and it hooks up with Mogo’s mobile app (also coming soon) to send spending notifications and alerts straight to your phone.