Overdraft Charges at BMO: A Comprehensive Guide

Banking is so much more than just checking your account balance and making deposits. Understanding the detailed specifics, such as overdraft charges and how they are applied, can make a significant financial difference. In this article, we'll be diving deep into the world of BMO overdraft charges, exploring how much they cost and how you can manage them via online banking, mobile app or by calling customer service. Let’s navigate this topic step-by-step.

Understanding BMO Overdraft Charges

Overdraft protection is a service offered by most Canadian banks, including the Bank of Montreal (BMO), that allows customers to overdraw their accounts up to a certain limit without incurring NSF (Non-Sufficient Funds) fees. This can be a lifesaver in cases of unexpected bills or emergencies. However, this service does come at a cost.

As of 2021, BMO charges $5 per month for overdraft protection, or $60 annually. But if a customer exceeds their overdraft limit, they will be charged an additional $5 per transaction, regardless of the transaction size.

Overdraft Management through Online Banking

BMO Online Banking brings the bank to the comfort of your home. The Online Banking interface provides customers with a detailed transaction history, including any incurred overdraft charges. Through the online banking platform, you can:

• Check and monitor your account balance regularly to avoid going into overdraft.
• Transfer funds between accounts to cover any potential overdraft.
• Set up (or modify) automatic transfers to prevent your account from going into overdraft.
• Apply for an increase in your overdraft limit if you find that you are frequently going into overdraft.

Overdraft Management through the BMO Mobile App

The BMO Mobile App essentially provides the same services as Online Banking, but with the added convenience of being accessible from your smartphone. With the mobile app, you can monitor your account balance, see any incurred overdraft charges, and make necessary transfers. You can even set up alerts to be notified when your balance is getting low or if you've dipped into your overdraft limit.

Overdraft Management by Calling Customer Service

Although online and mobile banking are convenient, some clients prefer to deal directly with a human being. The good news is that you can manage your overdraft by calling BMO’s Customer Service.

The customer service representatives can provide a complete review of your account, explain any overdraft charges and help you create a plan to avoid going into overdraft in the future. They can also assist with applying for an increase in your overdraft limit, if needed.

While managing your finances and understanding overdraft charges may seem daunting, being familiar with online banking, mobile app services, and customer service options can help you navigate these waters with ease. And remember, your bank is there to help guide you, so don’t hesitate to reach out whenever you need assistance.