Have you ever discovered an unauthorized charge on your bank statement? If not, chances are good that it’s because you haven’t been looking closely enough. While identity theft is one way this can happen, your bank could also be the culprit. If you aren’t aware of your bank’s policies for maintenance and overdraft fees, now is a good time to take a closer look at the fine print. Most of us know (or think we know) what will happen if we accidentally overdraw our checking accounts, but it’s still a good idea to review this information and to understand what (if any) maintenance or other fees are charged annually.

The reason to take time now to review this information is that many banks have been increasing fees substantially in recent years. Obviously the best way to avoid overdraft fees is to avoid overdrawing your bank account at all costs. While this is always the best course of action, vacations and holidays, as well as unexpected occurrences, can throw a wrench in even the best laid plans, and one simple mistake can wind up costing you hundreds of dollars. One way to minimize the amount you are penalized is to balance your checkbook at least five times a week. Doing this will ensure that you never grossly overestimate the amount you have available, therefore making sure you never overdraw your account by too much.

Many banks will transfer money from your savings to your checking automatically as a form of overdraft protection, while others will cover up to a certain dollar amount as long as you make a deposit within a predetermined amount of time.

Keeping a close eye on the fine print, and shopping for a new bank if need be, will help you to avoid costly and unnecessary fees, thereby increasing your financial well being!