You can find the first part of this series here: Banking Advice Part 1

Set up a direct deposit rather than physically depositing your payday check. This saves you the time and hassle of going to the bank to deposit your check. In addition, some banks will waive your checking account monthly fees if you direct deposit your paychecks. It’s just a matter of asking your bank’s customer service representative.

Opt out of the “courtesy overdraft protection.” Many banks include this “feature” as a standard for all customers. It essentially lends you money to cover any bounced checks. While this sounds like a great deal on the surface, banks usually charge you extremely high fees if and when your check actually does bounce, up to $40 for the initial loan and a $5/day penalty afterwards.

Instead, apply for overdraft protection. If you just canceled your courtesy overdraft protection, but are worried that you might bounce a check, overdraft protection is a good solution. Overdraft protection links your checking account with an account that will supply your funds if a check bounces. There will still be fees, but the cost is far less than that of the courtesy version. Some banks, such as Washington Mutual, allow you to link your savings account or money market account to your checking account to provide your own overdraft protection. This provides the best of both worlds; you can earn a high interest rate on your savings or money market rate while providing yourself with overdraft protection. It doesn’t get any better than that, folks.

That’s all for today’s Banking Advice, thanks for visiting ThePiggyBanker.com!