How can I avoid overdraft fees on my checking account?

Avoid overdraft fees by keeping a small buffer in checking, turning on low-balance alerts, and opting out of overdraft "coverage" on debit-card and ATM transactions so a purchase is simply declined instead of triggering a fee that can run around $35 each. Link your checking to a savings account for free overdraft transfer protection, which moves your own money over to cover a shortfall. Track the timing of bills against paydays so large automatic payments don't hit before your deposit clears. Many online banks and newer accounts now advertise no overdraft fees at all, which is worth seeking out. If fees do hit, a polite call to the bank often gets a first-time fee waived. Building even a one-paycheck cushion in checking is the most reliable long-term fix.