If you have an AllSouth checking account, you can use your Line of Credit to cover your checking account overdrafts. This service, called Overdraft Transfer from Line of Credit, is not automatic, and you must opt in to receive it. The service offers several benefits that make it appealing to customers. It has no minimum balance requirement and no monthly fees. In addition, it comes with a Visa Debit card. You can use this card to pay your bills and to deposit checks or loan payments.
To avoid incurring unnecessary fees, you should avoid overdrawing your account without first knowing how much money you can actually spend. In general, a bank will allow you to overdraw up to $500, although this may be less for people with poor credit. A high credit score will allow you to overdraw up to $1,000.
The amount you can overdraw depends on the number of withdrawals and deposits. If you make too many withdrawals before the overdraft limit is reached, the overdraft may increase. The fees can vary based on the order in which you make withdrawals and deposits.
Another way to avoid paying overdraft fees is to enroll in SpotMe. If you make more than $200 per month through your direct deposit, Chime will cover up to $200 of your overdrafts. The downside to SpotMe is that you may need to pay a third-party fee to use an ATM. You will also need to make sure your paycheck is deposited into your account regularly. This way, any negative balance will be cleared immediately after your next direct deposit.