Overdraft and Bounce Protection

Many financial institutions offer services to help clients avoid overdrawing the money in their accounts. However, these services are often accompanied by fees and other charges.

Overdraft protection provides for a transfer of funds into your account if you draw more than your current balance. Bounce protection is where the bank covers charges to your account over your balance. Typically a fee is charged each time you exceed your account balance. You can learn more about both of these from the Banking Department here.

The Federal Reserve Board offers a guide, Protecting Yourself from Overdraft and Bounced-Check Fees, which is also available in Spanish.