I opened an overdraft account 7 years ago at Wells Fargo just in case. I never bounced checks but with all the auto-payments and online banking, I thought it would be a good idea. Well, it was a credit card (used to be they took the money from another account, like your savings). I didn't have any debt or job problems back then, so I was fine for awhile. But....

Let me explain how insidious these account are. I bank online and I realized that I can transfer money from this credit cards (cash advance) to my checking or savings account! Just as if that 15K credit line were cash. In addition, a $40 transaction fee is charged AND the APR is 21.74 . I did this once, really stupid, I wasn't thinking. It wasn't much money but still, the idea.

Fortunately I paid this account off by transferring to a lower rate card when I started my debt pay down program last year. I'm thinking of closing it but with online banking and a few auto-payments out of my account, it's easier to have the overdraft as long as I watch it.