Locked: my CIBC bank account has a negative balance, now what?

Some accounts when you sign up have overdrawn privilege. They will charge you a service fee for using that service though.

OS44 wrote: ↑

Oct 26th, 2008 6:33 pm

So I did a paypal transaction and rather than charging my credit card it went straight to my checking account with CIBC. Now i have around -$130 in my bank account. i will deposit money into my account tomorrow to bring it up to the positive but i was wondering will having a negative balance with CIBC be a problem? I am surprised the transaction even when through without having enough money in the account in the first place.

Since the transaction did not bounce with NSF, I assume you have overdraft protection. You will be charged an overdraft service fee and overdraft interest. The service charge is not small and the interest rate is not low. However, it should still be cheaper than NSF.

often it takes the bank a day to catch up.
you might very well see that money deposited back into your account on monday, less an NSF fee.

i think it will cost you $20 + interest. i had that accidently happen to me too but that was years ago so i dont remember the charge exactly. might have been $25 or $30

its usually a few bucks + interest.
As long as you pay it back ASAP, it shouldn't be a problem.

If you have overdraft protection, it will cost you $5 + interest for the time the balance is under $0

This happened to me once too, but CIBC was kind enough to credit the overdraft charges when I explained my error. Go into the bank and explain the situation on Monday, you may get lucky.

Rishi wrote: ↑

Oct 26th, 2008 7:47 pm

This happened to me once too, but CIBC was kind enough to credit the overdraft charges when I explained my error. Go into the bank and explain the situation on Monday, you may get lucky.

what did you say to them exactly? would i have a good chance of getting the fee waived in my case?

OS44 wrote: ↑

Oct 26th, 2008 8:48 pm

what did you say to them exactly? would i have a good chance of getting the fee waived in my case?

I just told them that I had accidentally selected my bank account instead of CC when making a PayPal payment, causing the overdraft. I said I had already initiated a transfer to bring the balance back above 0 and they agreed to waive the fees. I didn't speak to a teller, I spoke to the PBO whom I had been dealing with for a few years. I guess it also helped that I've had the account since I was 6.

Rishi wrote: ↑

Oct 26th, 2008 8:54 pm

I just told them that I had accidentally selected my bank account instead of CC when making a PayPal payment, causing the overdraft. I said I had already initiated a transfer to bring the balance back above 0 and they agreed to waive the fees. I didn't speak to a teller, I spoke to the PBO whom I had been dealing with for a few years. I guess it also helped that I've had the account since I was 6.

ill give this a try

thx

banks sometime have a "courteous overdraft" that they sometimes give out. That being said, yes, you'll have to pay the o/d fee for that single transaction.

Just deposit the money like you originally planned and don't worry about it. It's just a $5 overdraft charge. There's also interest charges, but since you're depositing the money soon there won't really be any interest charges.

I personally wouldn't waste my time going into my bank for a $5 charge, but if it's worth it to you, give it a try.

Also, it's $5 each time you go into your overdraft, it's not a monthly fee or weekly fee or anything of the sort. So if you were to stay in your overdraft, you will incur interest charges, but there won't be any more $5 charges.

I like how banks let you take out more money than you have, and then charge you for that privilege. Why don't they just not let you take out more than you have in the first place, like in the old days? I sure wouldn't want them to allow overdrafts.

I was in exactly the same situation as you, my CIBC account showed negative, so I rushed to the bank to make a deposit to cover the neg balance and thought I was in the clear, then the next day the transaction was reversed, by the bank and paypal didn't get the funds from my account, I was charged a $40 nsf fee by CIBC.

I can guarantee the same will happen to you if you never applied for or received overdraft protection.