How to avoid bank overdraft and what to do if it is inevitable?

Bank transfers have been suspended from March 28 to April 2. This risks delaying salary transfers for the month of March and bank overdrafts for some. Here’s how to avoid it and what to do in this case.

From 28 March, bank transfers have been suspended until 2 April due to the Target 2 payment system operated by the European Central Bank (ECB), which is normally closed on weekends and public holidays. Indeed, on Good Friday and Easter Monday, the public holidays that open and close this long weekend, the system platform will not be operational.

As a result, thousands of employees are at risk of not receiving, as per tradition, their salaries, usually transferred at the end of the month which coincides with this long weekend. Indeed, in the absence of an instant transfer or one made internally during the day on Thursday March 28 that allows the money to be available in the next few minutes, another transfer will not appear in the beneficiary’s account before April 2, or even later.

. Not to please families who are barely making ends meet. Indeed, they risk finding themselves overdrawn in the event of a possible withdrawal, with special rents and other monthly charges, such as telephone subscriptions, loan repayments or other matters.

Direct debit is also blocked

A direct debit cannot be done before the system platform reopens, as it is also suspended like a transfer. So, until April 2, all you need to do is manage your wallet and your cash flow carefully to avoid any overspending that could put you in an overdraft that you did on your own. On the other hand, from April 2, the platform is likely to resume, especially with the possibility of account withdrawals before salary transfers.

How to deal with unavoidable overdraft?

In this case, it is advisable to contact your bank to request authorization. “Overdraft exceptionally and without prior agreement. In this case, it is usually an overdraft of a small amount and for a limited period.Official administration explains.

Failing this, it is always possible to request an overdraft authorization, the amount and duration of which will be defined in return for paying a subsequent fee, known as Agios. Most banking institutions charge a fixed minimum charge for any overdraft situation irrespective of its amount and duration.

If the overdraft amount used is 400 euros or more, a proportional fee is also charged. This amount is calculated according to the period of use of the overdraft at the interest rate and the average amount, official administration details. Specifically, for an overdraft of 950 euros for 15 days, the proportional fee amount will be around 7 to 8 euros. Their withdrawals are usually quarterly.