We hate bank overdraft fees. And we all know that banks play that trick when you have a low balance: the trick where they process the biggest charge through first so it drains your balance, then they process all the smaller charges so you get multiple overdraft fees. If they processed the transactions from smallest to largest, you would only overdraft ones.

Banks make a lot of money with overdraft fees. They made $34.3 billion just from overdraft fees in 2017. That’s the highest amount since the Great Recession in 2009.

And some of us are paying a lot!

According to Consumer Financial Protection Bureau, there are consumers who (individually!) pay almost $450 each year in overdraft fees!

For some families that’s groceries for a month. It’s rent for others. It’s spending money. There are a number of ways you could spend $450 that would be better than handing it over to the bank for overdraft fees.

Sometimes the overdraft fee can save your life.

If you’ve ever been just a few days away from payday and out of money, you may have swiped your debit card knowing you can’t fully cover a charge, but expecting your direct deposit will cover the negative balance. Think about how much better off you’d be if you could have your whole paycheck rather than sinking some or all of it into a negative balance.

While banks sometimes set you up to overdraft, sometimes it’s your own spending habits that cost you fees.

Let’s look at how to avoid the fees.

Link your checking account to a savings account.

Your savings account can serve as overdraft protection. Instead of overdrafting your account, the bank will transfer money from your savings account to cover your transactions.

Most banks will charge a fee for this transfer, but it’s going to be less than the overdraft fee ($12 vs. $36, for example). Plus, having a lump sum transferred from your savings account will keep you from having back to back overdraft fees.

Don’t link to your credit card for overdraft protection. It’s not better.

First, an overdraft to your credit card is treated like a cash advance, which comes with a transaction fee of 5% or more. On top of that, cash advance transactions have higher interest rate and don’t give you a grace period to avoid paying interest. In the end, the credit card overdraft could cost you more than the overdraft fee.

Transfer the money from your savings when your balance gets low.

You don’t have to wait for the bank to transfer the money for you. You can login to your bank app and transfer the money yourself as soon as you notice your balance is low.

Get in the habit of checking your balance at least once a day so you know your balance at all times. If you make a transfer and end up not needing the money, you can transfer right back to your savings account.

Keep a buffer in your checking account.

A buffer is like a “no touch” amount in your checking account. It can be $100, $500, or whatever you can afford. Make a personal rule that you won’t spend any money once your checking account reaches your buffer and stick to it.

It can take some time to actually build up to that buffer. You can jumpstart it with a bonus or tax refund. Or, build up your buffer gradually month by month by easing your spending as your balance gets to $50, then $100, and so on until you have a comfortable buffer saved up.

Opt-out of overdraft transactions.

Overdraft fees are completely optional for debit card purchases. You can let you bank know you want to opt-out of overdraft transactions. Then, your bank would be required to decline debit card transactions that would cause you to overdraft.

It might be a little inconvenient, but it would force you to stay more aware of your checking account balance because no one wants to deal with the embarrassment having their debit card declined.

Opting-out doesn’t apply to checks or online bill payments, though, so you’d still have to be careful about those. If you don’t have enough money, the check will be returned for non-sufficient funds and you’ll be charged a fee similar to the overdraft fee.

Set up low balance bank alert.

It’s hard to remember to check your account each day, especially if you have a busy schedule.

Many banks apps let you set up low balance notifications that will text, email, or send a push notification when your balance gets to a certain amount.

Once the app notifies you of a low balance, you can transfer money to your checking account or reduce spending spending until you have more money in your account.

Use a credit card for car rentals and hotel stays.

Many car rental agencies and hotels won’t take debit cards, but those that do, will place an authorization hold on $200 or more of your checking account balance.

The money that’s held for authorization won’t be available until the transaction is fully processed and your actual balance available for spending will actually lower than what’s actually in your account.

If you use a credit card instead, the authorization hold takes up your available credit not your checking account balance. You may still be able to use your debit card to pay your balance once you’ve returned the car or checked out of the hotel.

Be good with money.

The way you manage money on an ongoing basis directly affects how you manage your checking account and the amount of overdraft fees you pay. Stick to a budget and live within your means to avoid  overdraft fees and keep your cash flow smooth in general.

Don’t try to remember to keep up with your checking account balance. You can quickly and easily verify what’s in your account by calling your bank or pulling up your balance online or via smartphone app. Don’t forget to factor in outstanding checks and any automatic payments you’ve set up.