Having overdraft protection on a checking account is a good idea but it can also be an expensive feature. Why?

a. Banks charge a monthly fee for having overdraft protection on their checking accounts.

b. A fee, which can be as high as $25–$30, is charged when overdraft protection on the checking account is used.

c. The bank charges 20% of the amount taken from the overdraft protection.

d. The bank stops paying the person interest on savings accounts or CDs each time overdraft protection is used.