Business

<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Sunday, June 22, 2008 Bounced check coverage can be a waste of cash Question: My bank offers overdraft protection. Should I use it? Answer: If you are known to bounce a check from time to time, you need a system in place to keep you from paying hefty fees. But be aware of what protection you're signing up for -- "bounce coverage" for many people can be a waste of money. What is overdraft protection? It's an agreement that if you make a payment that exceeds your bank balance, your bank will pay the merchant automatically. Essentially, it's a very temporary loan from your bank, so you can stay in good standing with the seller, and avoid a returned-check fee from the merchant. A bounced check with no protection usually results in a $20 to $30 fee from the bank, as well as a $20 to $30 fee from the merchant. With the typical overdraft protection plan, this penalty is cut in half -- you only have to pay the bank's $20-$30 fee as long as you put money back into the account quickly. Still, that's $20 to $30 that you have to pay for the error -- no small potatoes if you overdraw your account a few times a year, or if you are swiping your debit card for an entire weekend without knowing that your account is overdrawn. (Each overdraft prompts a separate fee.) The best option for most people -- and one that most banks offer, according to the online service Bankrate.com -- is to link a savings account to your checking account. The cost of a transfer is about $5 to $10, much less than the usual overdraft fee. If you don't have a savings account at your bank, start one for this reason, McBride recommends. Another choice is to link your checking account to your credit card. This way, you get a cash advance for a nominal fee that goes into your checking account to prevent you from overdrawing. This plan is only good for people who pay off their credit card balances regularly; the interest rate on the cash advance can spike over a fairly short period of time. Associated Press

1. Life on the strike line 2. Arlington boatbuilder shutting down; hundreds to lose jobs 3. Dwayne Lane can build in Arlington, court says 4. Boeing, Machinists likely to resume talks this weekend 5. Woman who helped bust Everett cyberpimp will serve a week in jail 6. Crash shuts highway in Lake Stevens, sends 1 to hospital 7. U.S. 2 striping will add a lane 8. Man arrested after Everett gun confrontation 9. Snow So Soon? 10. Robinson looks to be productive for Seattle 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Shorecrest upsets Meadowdale behind fine defensive effort • 'Free' solution to costly problem? • King's beats Archbishop Murphy, takes over lead in Cascade Conference • One sweet training program • Who says white men can't rap? • Anonymous parent salvages snacks at school • Court move's plans raise questions • Jackson prevails in overtime thriller • Meadowdale's Moore-Taylor runs wild • Paine Field airline service strongly supported by 71 percent of web surv ... • Verizon launches FiOS TV in Washington State • Leisure Time Events - September 2008 • September 2008 • State needs to establish north county campus to meet growing technology ... • Future software programs may be based online • Visit two unusual Paine Field aviation museums for historic and futurist ... • Mothers launch Kids ‘N’ Clay pottery studio to provide children with cre ...