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U.S. Bank asks: Do you know what an overdraft is?

Real students are interviewed about their understanding of overdrafts and given tips on how to manage their money to avoid overdrafting.

This installment of our student series is all about the overdrafts and how to stay on top of your accounts. Learn some simple tips that may help you avoid the potentially costly fee. Already an expert on overdrafts and how to avoid them? Learn more about your finances.

View video transcript

U.S. Bank asks: Do you know what an overdraft is?

(SPEECH)
[MUSIC PLAYING]

(DESCRIPTION)
Daytime at a college campus. Text, U.S. Bank asks, what's an overdraft?

(SPEECH)
Hey, everyone. Allyson Berger here, and we are on a college campus right now giving out free golf cart rides to students in exchange for answering a few questions. So let's go find someone to talk to, shall we?

(DESCRIPTION)
Allyson approaches students.

(SPEECH)
Excuse me. Do you have a few minutes?

Sure.

Hi, how are you doing? I'm Allyson. What's your name?

I'm Steffi.

We're talking about banking and finances.

I actually work at a bank.

Do you?

(DESCRIPTION)
The students and Allyson ride around in a cart.

(SPEECH)
All right, Steffi. So tell me, do you know what overdraft is?

I actually do not.

I was just learning this the other day.

An overdraft is a transaction that causes your account to drop below $0. Debit

(DESCRIPTION)
Mercury in a cartoon thermometer goes down as dollar bills fall.

(SPEECH)
card purchases, checks, automatic bill payments, online purchases, there are a lot of ways to accidentally overdraft if you're not paying attention.

I think I've experienced that once with my debit card when it took out a bill and I didn't have enough and it overdrafted.

(DESCRIPTION)
An example ledger is shown as a pen fills in the items.

(SPEECH)

Keep your own record of all credit card transactions, online purchases, ATM fees, automatic bill payments, and subscription fees.

Does that help you budget now? Have you learned from that experience?

Yeah, I have learned. I've always tried to keep a certain amount. It's hard, but, you know, you don't want that to keep happening.

Do you know if your bank offers you an overdraft protection policy?

Yeah, they do.

(DESCRIPTION)
A red shield surrounds a thermometer. Bills are stacked behind the shield.

(SPEECH)

Some banks offer overdraft protection programs. This usually involves a second account that automatically covers you if an overdraft happens. A little time now can save you a lot of trouble in the future.

Be on top of your stuff, you know? Because, if you're unaware about certain things that are billed to your accounts or whatever, it happens.

The companies don't care, so I have to care.

Exactly.

Thank you so much for spending some time with me, Joshua.

Thanks for having me. Yeah, I moved my brick and this was a really productive thing to do. Thank you so much for approaching me.

Thank you.

Bye.

(DESCRIPTION)
Allyson talks and stands in a park.

(SPEECH)
Hey, you know what we should go do? Let's go download some budgeting apps because, you know, this whole golf cart thing, it's costing me an arm and a leg. I'm Allyson signing off on campus. See you soon.

(DESCRIPTION)
Red and blue logo, U.S. Bank.