Preventing Overdraft Charges on Your Checking Accountby FDIC
Ask your bank about linking your checking account to your emergency savings account. With this arrangement, an overdrawn checking account can be covered by having the shortage automatically transferred from your savings account. "Expect to pay a small transaction fee for using this service, but it will be less than what you'd be charged in interest and fees for a bounced check or a short-term loan," said Rae-Ann Miller, special advisor on consumer issues in the FDIC's research division. "Remember that it's always cheaper to borrow from yourself than to borrow from someone else."