Bmo Overdraft Agreement
BMO Overdraft Agreements: What You Need to Know
If you`re a BMO customer, you may have heard of the term “overdraft agreement” before. But what exactly does it mean? And how can it affect your finances?
Simply put, an overdraft agreement is an agreement between you and BMO that allows you to withdraw more money than you have in your account, up to a certain limit. This can be helpful in case of unexpected expenses or emergencies.
However, it`s important to note that using an overdraft agreement can come with some hefty fees and interest charges. BMO charges a $5 fee for each day you have a negative balance, plus interest on the overdrawn amount. These fees can quickly add up and put you in an even worse financial situation.
To avoid these fees, it`s important to keep track of your account balance and avoid overdrawing whenever possible. You can also set up alerts and notifications through BMO to help you stay on top of your finances.
If you do need to use your overdraft agreement, it`s important to pay off the overdrawn amount as soon as possible to avoid accruing more fees and interest. Make sure to budget accordingly and prioritize paying off any outstanding balances.
Overall, a BMO overdraft agreement can be a helpful tool in managing your finances, but it`s important to use it responsibly and understand the potential fees and charges associated with it. Keep track of your account balance and budget accordingly to avoid any unnecessary fees and interest charges.