I wrote a check to my Roth IRA account in January and I didn’t have enough money in my checking account. Fortunately, the check did not bounce, but there was a huge negative amount displayed on my online account balance. I immediately transferred enough money over from my savings account. Unfortunately, I was still charged an overdraft fee of $30.
I usually keep good track of my accounts but there are times I’m so busy I lost track of each account. During the fourth quarter of 2006, I got caught up work. I didn’t update my Microsoft Money and forgot about the balances in my accounts. My 0% APR credit card expired and I was charged finance fees for several days. My checking account was running low in funds so I was caught with overdraft fees for a few checks. I was hit by a string of bank fees and finance charges. The fees added up and became a sizeable amount. That’s why it’s important to watch over your accounts.
Bottom line: Monitor the balances on your accounts.