Allow Savings Account to be Overdrawn?

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Question:

I am under the impression that we should not allow savings account to be overdrawn?

Answer:

Whether you allow a savings account to be overdrawn is a matter of bank policy. Disclosure of costs under TISA and proper accounting for the overdrafts would be the major concern. It is not something that is common in the industry and banks do not normally allow it, but it occassionally happens under unusual circumstances.

First published on BankersOnline.com 11/19/12