Bounce vs. Overdraft Protection

Have you ever asked yourself, what's the difference between bounce protection and overdraft protection agreements? Is there a difference? Yes. This topic has gained the attention of consumer advocates lately. It is drawing the spotlight due to struggling banks looking to increase revenue through fees related to these agreements and because consumers are looking to balance their own books by reducing expenses. I consider the bounce protection, offered by most institutions, to be an opt-out agreement while overdraft protection are opt-in agreements. This chart provides an excellent side-by-side comparison. The take away is that consumers need to know the differences and make sure the agreement that they use helps them reach their financial goals.