When you use a debit card, you are spending your own money and it comes straight from your account. If you use your debit card for every day bills and purchases, it is a good idea to check your balance regularly so your account doesn’t get overdrawn, which may result in fees, interest and dishonoured payments.
If your bank balance falls below zero, it can be overdrawn. This happens when your bank honours a transaction such as a direct debit or scheduled payment using a card linked to your account. If your account is overdrawn, you may be charged an overdraw fee plus interest on the overdrawn amount.
A dishonoured payment is any payment you wish to make but is not paid because there is not enough money in your account to pay it. Check with your bank about whether you will be charged a dishonour fee and if there is a grace period before you are charged.
Here are some ways you can avoid these fees on your account.