Students And Debit Card Overdrawing Problem
This post is dedicated for any students who have just arrived Australia or students who have just been charged for overdrawing their debit cards.
It's quite common that students, especially overseas students, realise they have been charged for overdrawing their debit cards. Depending on the bank being used, the charges vary. For example, a friend of mine was charged $10 for overdrawing $30 from his debit card. Since not many students understand how the system works, they might spend more money than what they have got in their bank accounts.
Also some have got their debit cards overdrawn accidentally because they have been direct debited by telephone companies or insurance companies. For example, you have got $50 in your bank account and you want to spend only $30 out of that. However, you might have forgotten that you have agreed for your telephone company to auto debit at the beginning of every month which could be another $40. What would happen is that you have overdrawn $20 from your account accidentally.
Hence, you have to be very careful in keeping a minimum amount in your bank account and you have to regularly check your bank statements just in case you have overdrawn because you will not want to keep overdrawing your bank accounts which could result in more overdrawn fees.
If it happened and it were the first time, you can actually contact your bank to negotiate. They might reimburse the money. However, there will be no second time for this.