Did you know that the average non-sufficient funds fee (NSF fee) charged by most financial institutions when a cheque or e-transfer bounces is $45?
That's enough to treat yourself to a nice steak dinner!
At KOHO we don’t charge NSF fees. Instead you’ll get a friendly notification if there aren't enough funds to fulfill a transaction.
How can you avoid pesky NSF penalties from your bank?
Maintain a “float” - hold a bit of extra cash in your account to cover unexpected transactions or transfers. The size of your float depends on what transactions run through your account, but giving yourself a reasonable buffer is better than the headache of a declined transaction.
For context - by holding $1,000 in your KOHO account instead of a typical savings account earning 2%, you're only missing out on earning $20 per year.
Watch the timing of your payments - make sure that bills or rent are being paid at a time of the month when you expect to have money in your account, or that you keep track of e-Transfers you've sent to friends or your landlord but that may not have been cashed.
Pay your bills using an account that doesn’t charge NSF fees - such as, you guessed it, KOHO!
Curious about how you can pay your bills using KOHO? Read more.