• Poayjay@lemmy.world
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    1 year ago

    No because 12%(?) interest on overdrawing your account by $1 is a lot less than a $35 flat fee. If you overdraw your account you’re basically asking for a loan for the negative balance. It makes more sense to charge like you would for a loan.

    I had a bank with “overdraft protection” before. It was basically a $500 line of credit that was activated if you overdrew. The interest rate was terrible, though.

    • Neuromancer@lemm.ee
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      1 year ago

      To me that’s reasonable. If the interest was 20%. That’s better than the fee. The fee if calculated at an interest rate is robbery.