There’s a new law going into effect on August 15, 2010.  It’s called Regulation E (Reg E), and deals specifically with overdrafts.  Basically now you have to choose to Opt In or Opt Out of overdraft protection.

Currently many banks will approve your debit card even though there is not enough money in your account.  Effective August 15, every banking client will be opted out of overdraft protection unless they choose to opt in. Should you opt in or opt out?

Opt In for Overdraft

If you choose to opt in for overdrafts, your card may get approved even though the funds are not available in your checking account.  This may be good in the event of an emergency where you are stuck with absolutely no cash and your car has broken down, or even to avoid embarrassment when you’re out to dinner with a date and your card would normally be declined.  On the other hand, opting in to overdraft protection would not be a good idea for someone who doesn’t balance their checkbook.  I definitely wouldn’t recommend opting in if you don’t keep up with your balance.  There’s no sense in risking overdraft fees!

Opt Out of Overdrafts

Opting out is just what it sounds like: no overdrawing your checking account with the debit card.  Don’t be overly confident, though: recurring debit card transactions are an exception. If you’ve let your car insurance company charge your debit card, the transaction may be approved even though the funds are not available.  Otherwise, if you don’t have the money in your account, your card won’t get approved to cover the transaction. This is definitely helpful in the fact that you’re less likely to get overdraft fees.

If you don’t do anything, you’ll automatically be opted out of overdraft protection.

Are you going to opt in or opt out of overdraft protection?  Why?

I’m always looking for new high yield savings accounts as part of my job working at the bank. I think it’s always good to know where the competition stands. I’ve decided I’m going to start sharing some of my findings here, in hopes that someone can benefit from my research.

EverBank Review

EverBank is a bank that I hadn’t heard of, but decided I’d like to check out. EverBank is headquartered in Jacksonville, Florida and is FDIC insured, and carries a wide array of financial products, from checking accounts, money market accounts, high yield savings accounts, and even certificates of deposit.

If you’ve got a decent emergency fund build, you want to look into EverBank.  In 2007, EverBank was named “Best of the Breed” by Money Magazine.  They continue to thrive even in today’s volatile market.

Yield Pledge Money Market Account

EverBank does have a $1,500 minimum opening requirement and if you don’t keep $5,000 in the account, you may be assessed a fee (around $9).  You could use this account to stash your emergency fund or even saving for a house or car.

EverBank does have a three month introductory rate on its money market account, and it’s higher than almost any other high yield savings account I’ve seen currently.

You can direct deposit into an EverBank account.  EverBank’s routing number is 063092110.

You can learn more or open an Everbank account.

Where do you keep your savings account?