In 2009, Americans were charged over $38.5 billion in overdraft and insufficient fund fees, according to USA TODAY research. So it isn’t a surprise that banks have caught on to the “service” of providing overdraft protection. Why make a mere $35 when they can make two to three times as much with overdraft protection charges from an overdraft line of credit.

If you are someone who continually overdrafts then you should see if your bank has overdraft protection programs. Overdraft fees generally run $25 or $35 PER OVERDRAFT. Here is how this can be dangerous. You write a check for $300, forget about it, go online and see you have $500 left over at the end of the month. You go shopping and spend $300. The check is released but now there is only $200 left in the bank. The check bounces and you are charged by your bank, and maybe even by the other persons bank that tried cashing the check. $35 down the drain. The other dangerous thing, which is probably worse is you continuously make purchases and overdraft more than 5 times in a month. $35 X 5 = $175 down the drain. You are being penalized for using your money. Money that you don’t have! It’s almost as ironic as being charged a fee to file bankruptcy papers.

Some banks like to offer overdraft protection loans. If you overdraft by accident, then your payment is covered, but you automatically take out a very high interest loan for the amount that was covered. Overdraft protection can me more expensive if someone was to steal your bank cards. They can steal all of your money, and rack up some crazy high overdraft loan charges. It is thus better to link your checking account to a small savings account that will cover any small overdrafts. One hundred bucks is all you need in an emergency overdraft fund.

To avoid overdrafting, keep a record of your spending. Also open a separate savings account that links to your checking account. Do not open an overdraft credit account, as these are ridiculously expensive. This is your safest bet.