I know that some banks as soon as you open an account with them they give you like 100 dollars worth of overdraft protection or some give you more. does everybank have the power to do that or is it just some banks. is it at the banks discrepency? sbcs
No, unless you pay a overdraft protection premium, you have to have the money in to cover withdrawls.
Overdraft protection is credit. You overdraft your account by $200. They charge you $40 fee for covering the check, and you make a deposit to cover the overdraft 2 days later. That makes it one of the most profitable things a bank does - especially when you consider that it's *cheaper* to cover your overdraft. It takes more manpower to bounce a check than to cover it. But a bank would be silly to extend credit to just anyone. If they did that, every check kiter in a 13-state area would open an account there. But yes, every bank has the power to offer overdraft protection, and almost every one does - but they don't offer it to everyone.
overdraft is a loan( at about 20%),so if your talking BIG amounts, they will check your credit,,small amts, just a courtesy
