Tip Tuesdays: If You’ve Got Overdraft Protection on a Savings Account, Call the Bank and Cancel It Right Now

by Vinaya HS on November 4, 2008

in Finance

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Overdrafts are worse than personal loans. They make you spend money that’s not yours. They make the bank rich and you poor. Why would you ever want this to happen? If you’ve got overdraft protection on a personal savings account, call the bank right now and cancel this facility. If you don’t know whether your savings account has a line of credit (a fancier term for overdraft) attached to it, call the bank and find out.

I once had an overdraft facility on my Citibank Suvidha account. I called to close it. I was informed that once this line of credit is closed, I will not be given the option to start a new one again. I have never been happier than that one fleeting moment.

Tip Tuesdays is my new initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment or use this form to submit your tip. And, as always, do spread the word if you find this useful.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 1 comment… read it below or add one }

Girish November 4, 2008 at 8:28 PM

Wow…
That’s an usefull info…
I also remember Citibank always entertaining the OD on our accounts.
Also I have friends who had taken the OD and could really not understand
how much more they paid finally for the OD…
Keep the blogs flowing.
Nice to hear you are incresing your site statistics….
Girish

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