Do you bounce checks?

Ok, I admit it, I bounced a check one time because I forgot to transfer money from my savings account. I should be ashamed for not having this service done automatically. It's called overdraft protection and it is available in different formats depending on your bank. 

• You can have overdraft protection with a savings account, make sure you tell your bank you want the savings linked to the checking acount for overdraft. If you don't have enough in your checking, the difference will be automatically transfered to your checking. Be aware that there might be limits on how many times you can do this per month with a savings account.
• Another form of overdraft protection is a line of credit, some banks still offer this and it's often reffered as check protection, cushion credit..you get the point. It is simply a personal unsecured line of credit that is used solely for protection of your checking account.
• Some banks will also allow you to use your home equity line of credit or even a credit card if it is with the same bank. The differences are again automatically transfered to your checking and all you do is pay back the amount plus the corresponding interest.

Of course, your bank will not do this for free, so check your bank to see which is the most cost effective. Be advised that to have a line of credit, you will have to submit a credit application.