Link to a backup account5 of 8Another strategy is to link your checking account to a savings account, line of credit or credit card that you authorize the bank to tap to cover an overdraft. This approach is an option if you can qualify for a line of credit or credit card, or you have a cushion in your savings account.But while a linked account should be less costly than an overdraft fee, it might not be free."Some banks charge a fee to transfer money from one account to another, and you might want to consider what interest rate is being offered on the line of credit," Kaplan says.« Back to Financial Regulation. Related Articles:Checking account tipsDebit card rewards surveyAvoid checking feesBank statement anatomyRelated Links:High-Yield Checking Study4 tips to thwart ATM thievesBanking at credit unionsFinancial reform dissected advertisement
Another strategy is to link your checking account to a savings account, line of credit or credit card that you authorize the bank to tap to cover an overdraft. This approach is an option if you can qualify for a line of credit or credit card, or you have a cushion in your savings account.
But while a linked account should be less costly than an overdraft fee, it might not be free.
"Some banks charge a fee to transfer money from one account to another, and you might want to consider what interest rate is being offered on the line of credit," Kaplan says.
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