Unpopular opinion: paying $15 a month for overdraft protection is a total scam

My bank kept pushing their overdraft protection plan on me, saying it would save me from fees. I finally signed up six months ago and it cost me $15 every month like clockwork. Then I got hit with a $35 overdraft fee anyway because of some fine print about a 'direct deposit exception' they never told me about. So I paid $90 total over those months plus the fee, and I still had a declined payment show up. I called them up and asked what exactly I was paying for if it didn't stop the fee, and the rep couldn't give me a straight answer. I canceled it right then and now I just keep a $50 buffer in my checking account instead. Has anyone else gotten burned by these bank add-on services that sound good but do nothing?

2 comments

2 Comments

jason52412d ago

$15 a month is nothing compared to the $35 fee you avoided those other five months, plus the peace of mind that your bills actually go through. Isn't your time wasted dealing with declined payments worth more than a few bucks?

paulw6312d ago

...and honestly @jason524 I think the math is even more lopsided than people realize. You're not just looking at the cash difference. There's this whole hidden cost when your card gets declined at the worst possible moment like your power bill or phone service. I've seen people get hit with late fees on top of the returned payment fee from their bank. That can be $50 or more easy. And the time spent on hold with customer service trying to get those fees reversed? That's hours of your life you don't get back. The peace of mind thing is real even if it sounds like a marketing slogan. My credit union actually told me most overdraft protection plans pay for themselves within two months for anyone living paycheck to paycheck. But yeah, you gotta run the numbers for your own situation and see if it makes sense.