- 1 Royal Bank of Canada, overdraft and NSF fee $40
- 2 What You Need To Know About Overdraft Fees
- 2.1 This notice explains our standard overdraft practices.
Royal Bank of Canada, overdraft and NSF fee $40
I received a letter from the Royal Bank of Canada (RBC) the other day and there was a $40 fee for something called an NSF item fee. Looks to me like an overdraft fee, maybe?
A few weeks ago, I paid for an online item and entered the wrong PayPal account. The PayPal account was linked to my RBC account which had little money in it. I asked to cancel the online purchase because I accidentally entered the wrong account, and I then entered the correct PayPal account which was linked to another bank.
Of course it was my fault, but I did not anticipate the fee from RBC to be more than $5 to $10. Why do I think these types of overdraft or NSF fees should be no more than $5 to 10$? Because that’s how much my other bank charges me for an overdraft. But RBC charged me $40.
I think that it is too much money for an overdraft fee. $40 is about 3 to 4 days worth of food for me, and this happened to my RBC savings account. I would think only credit card companies were over charging their customers, not saving accounts.
My other bank account at President Choice charges $5 for an overdraft under $500. And RBC is $40? Wow, now I remember why I don’t use my RBC card, RBC line of credit or RBC Visa.
I am going to my RBC branch to pay off all of my balances and then I am going cancel my bank account with my $22,000 line of credit and my $15,000 visa card.
Another thing about RBC’s line of credit. When I first had my line of credit with RBC 3 years ago, the line credit allowed me to take up to $10,000 at 6.5% interest. At the time, I thought the interest was low so I went and took out about $8,000.
Two months later the interest went up to 7.5% then a few months later it went 8.5% and then I quickly paid everything off. By the time I paid off my RBC line of credit, my interest rate was around 10%. So much for the low interest rate. I think RBC kept jacking up the interest on my loan as long as I owed them money. Once I had paid off everything the interest went back to about 6.5%. Sneaky bastards.
That was the last and only time I used my line of credit from the Royal Bank of Canada.
Update: I just came back from my RBC branch and cancelled all of my accounts with them. I feel so much relief for not having to over pay them ever again.
What You Need To Know About Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:
- We have standard overdraft services that com e with your account.
- We also offer overdraft protection plans, such as a link to a savings account, which may be less expensive than our standard overdraft services. To learn more, ask us about these plans.
This notice explains our standard overdraft practices.
What types of transactions are covered by the standard overdraft service?
We DO authorize and pay overdrafts for the following types of transactions:
- Checks and other transactions made using your checking account number
We DO NOT authorize and pay overdrafts for the following types of transactions unless you ask us to:
- ATM transactions
- One-time debit card transactions (does not include recurring payments, including utility bills)
It is important for you to know that we pay overdrafts at our discretion, which means we DO NOT GUARANTEE we will always authorize and pay any type of transaction. If we do NOT authorize and pay an overdraft, your transaction will be declined.
When multiple items are presented for payment, the system pays ATM and debit card transactions first from low to high dollar values, ACH withdrawals second from low to high dollar values, and checks and ACH converted check items with serial numbers last in serial number order.
For example if these five items were presented on the same day: check number 123 for $25, check number 130 for $295, $20 ATM withdrawal, a debit card purchase for $19.95, and an ACH withdrawal for insurance of $75.
They would be paid in this order: $20 ATM withdrawal, $19.95 debit card purchase, $75 Insurance ACH withdrawal, check number 123 for $25.00 and check number 130 for $295.
What fees will I be charged if STAR pays my overdraft?
Under our standard overdraft practices:
- We will charge you a fee of $35 each time we pay an overdraft.
- For retail customers, we limit the total number of overdraft/NSF fees to 6 ($210) per day per account.
If you also want us to authorize and pay overdrafts on ATM and one-time debit card transactions on your new checking account, answer "Yes9quot; to that account question. You can change your selection at any time by calling (888) 395-2447.