Good money management can help avoid overdrafts on your account

Tips to avoid overdrafts in your account

Overdrafts can be a costly way to find out that your bank account doesn't have the balance you thought it did. Understanding what an overdraft is, how your balance is calculated, and options to avoid overdraft fees can help you feel good about your financial health.  

What is an overdraft?

When you do not have enough money in your account to cover a transaction, Synovus may cover the amount for you. An overdraft occurs when one or more debit items (for example a check, ACH, ATM withdrawal, or debit card purchase) attempts to clear your account in an amount that exceeds the available balance of your deposit account, and the item is paid.

How is my available balance calculated?

Your available balance is calculated by taking the prior business day’s ledger balance and subtracting the funds that are being held to cover pending transactions.

A pending transaction is a transaction the bank is aware of but has not yet cleared. It might include must-pay debit card transactions or deposits made to your account for which funds have not yet been collected. The ledger balance is the balance from the close of the previous business day and includes all transactions that cleared the account that day.

Neither your ledger balance nor your available balance reflects any transactions that the bank does not know about, such as reoccurring payments you have set up or checks written but not yet received by the bank.

What are some tips to avoid overdrafts?

Good account management is the best way to avoid unexpected overdrafts. Know how your available balance is calculated and remember reoccurring payments you’ve set-up or checks you’ve previously written. Use My Synovus1 digital banking to keep track of your spending on the go. You can check your balance, set up low balance alerts, or easily transfer funds between your accounts.

Options to reduce overdraft fees

Linking another account like a savings account or a line of credit with Overdraft Protection could be a less expensive option to cover unexpected overdrafts. A single funds transfer may provide the overdraft coverage you need, as opposed to multiple overdraft fees per transaction.

Synovus Budget Checking is an account that does not offer overdraft coverage and can help keep you on track if you’re still learning the ropes managing your money. This account features a low monthly fee2 and no overdraft fees.

If you do not qualify for a checking account due to too many previous overdrafts or charged off accounts, or prefer just to avoid overdrafts completely, the Synovus Connections® Visa® Prepaid Card is a reloadable card that allows you to add funds to the card account and then use it wherever Visa® debit cards are accepted such as stores, restaurants, gas stations and online.

If you would like to make changes to your account, update your overdraft coverage, or have any additional questions, please visit a local branch or call 1-888-SYNOVUS.