However he said the daily overdraft charges make this an uncompetitive account for those who regularly dip into the red.

Overdrafts can also be a danger with paper checks, but the study found that they are responsible for only 25 percent of overdraft charges.

Consumer advocates who study debit cards point to overdraft charges as just one more thing to keep in mind when using the cards for purchases.

Remember what happened last time with the unlawful overdraft charges?

Banks provide valuable services, and customers can easily prevent overdraft charges.

Each purchase incurred an overdraft charge of $32, or a total of $288 in penalties, more than the $221.82 cost of the purchases.

However, members were allowed to take advances on their pay checks without overdraft charges or repercussions to their credit.

These types of account normally have more extensive overdraft facilities or involve smaller overdraft charges.

Lloyds has also been accused of religious discrimination in connection with its overdraft charges.

But the regulator admitted that the third problem it had identified with banks, unarranged overdraft charges, was still unresolved.