Quote Originally Posted by Princess12
Talk to your bank about it. Basically, it protects you from the overdraft fees by extending a line of credit to your account once you hit a designated amount whether it be $100.00 or $0.00. You are responsible for paying that money back to them, and it will accrue interest over time if you fail to repay the loan amount.
That doesn't stop the overdrafts from coming in, though. I have $500 overdraft. If I drain my account and I'm short $10 and it takes that $10 from my OD, then I still get the $34 fee, plus I have to pay back the $10 on top. The overdraft just makes it so when you do go purchase something and you don't have enough money for it, the OD kicks in and covers the rest. For that $34 fee. Later, QD.