Originally Posted by mesa
The other bank is amazing. I love them. I can transfer money to and from my other bank account (different bank) for free, my paychecks show up a day early, they refund ATM surcharges, and even their od fee is less, $29, as opposed to $35 at the "other" bank. They also allow you to scan a check and email it to them for deposit, since they have no physical branches. It's very quick, and they don't hold the funds, either.
I'm assuming you're talking about USAA. If so, I absolutely agree that they are awesome.
Yes, they'll charge you overdraft fees if you are overdrawn. BUT, it's actually kind of hard to end up in overdraft IME.
First, they won't allow you to use your debit card if funds aren't available. That alone would have prevented the OP's situation.
Second, they don't "hold" deposits. I've gone through the drive through, deposited several thousands of dollars by check into our account that previously had a balance of less than $100, then immediately spent the money I just deposited minutes earlier.
Third, you don't officially go into "overdraft", thus triggering fees, until close of business. So, I can have 10 checks hit the bank tomorrow morning, all of which would "bounce" at a typical bank if I didn't have the money available right then. With USAA, as long as a deposit hits your account before they close for the day, you're good. Even a check, again because they don't "hold" deposits. Auto deposits work the same way. Even if DH's auto pay doesn't hit the bank til 4pm, it's still going to cover charges from earlier in the day.
We also get up to $15 per month refunded from using other bank's ATM's. Free checks, free checking and savings accounts, postage paid envelopes to mail in deposits. The list goes on and on. They are awesome.