When signing up for a new checking account you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions

Question

Laurel

Business

8 February, 20:15

When signing up for a new checking account you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions

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Answers (1)

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Janelle Case · Answer 1

Overdraft or insufficient fund fees will be charged while the excess amount $ (39-10) with the bank charges is recorded as a debt owed to the bank

Explanation:

Overdraft protection is a form of bank service rendered to protect a check account from crossing a zero balance in order to avoid overdraft or non sufficient fund fees. It allows the transfer of fund from one account to another when funds are no longer adequate for a particular transaction or even at zero balance.

In the situation where an account holder opt out of it, this means he will be charged an interest on any spending in excess of it account balance and the total debt recorded against him.