What Is Bounce Protection?

Bounce protection is a completely different banking product than overdraft protection. Banks advertise this as a product that will allow customers to overdraft their account to a set amount ranging from $500 to $1000.

But if the customer writes checks for more than the set amount, the bank may not cover the checks. The bank will not waive the “non-sufficient fund fee” so the customer will pay the fee, which is usually somewhere between $25 on the low end and $40 on the high end.

Additionally, the customer has to pay daily fee ranging from a couple of dollars up words to more than $10 if the account is not brought into balance.

Think about how this would work if you overdraw the account – you will pay $35 plus a daily fee. On a $200 or draft you could easily pay $40 which is equivalent to a 20% interest rate.

With rates like that, you may be able to get a cash advance on your credit card for a lesser amount that you would not have to pay off for 30 days.











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A LOAN CALCULATOR FOR CRUNCHING YOUR NUMBERS IS BELOW; Enter your loan amount, how many years, the interest rate, and payment frequency (14 for biweekly, 30 for monthly, 7 for weekly. Very helpful so you know exactly what the loan will cost you in interest payments and you will know the total COB (cost of borrowing).

Loan Amount:

Interest:

Years:

Days between payments:
30 for a Month, 7 for Week
and 14 for Bi-Weekly. Easy!

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