As Seen on the Show

Don’t Throw Your Money Down the Drain


New analysis from banking app dave, which helps people avoid overdraft fees through budgeting tools and advances, shows residents of the top ten American cities pay more than $3 billion in overdraft fees each year.

You work hard for your money, so you wouldn’t just throw it away with the trash, would you? While you may be screaming “NO WAY!” it’s exactly what many of us are doing to the tune of billions of dollars each year! What’s one of the main culprits?  It’s something so simple, little bites from our bank account that add up to a chunk of cash.

Residents in Los Angeles alone pay more than $700 million a year.  Across the top 10 American cities, the average overdrafter pays $334 per year in fees. That’s money that could be used to create an emergency savings.

How do we stop our ‘budget boat’ from sinking and keep our finances afloat? Dave helps over 5 million people thrive, not just survive, between paychecks. Connect any bank account to start or open your own Dave checking account. Takes less than 2 minutes.

“One thing I am really excited about is the app dave, it advanced people $75 from their next paycheck to avoid an over draft fee, which can be really costly and works by syncing up to your bank account. The app looks at your upcoming expenses and analyzes if any put you at risk for overdrafting and we will send you an alert to send you that from your paycheck. It helps you find jobs or gigs in your area to bring in more money to relieve the stress and avoid the potential headache of experiencing more overdraft fees down the line,”  Tonya Rapley, Author of The Money Manual.

What Is the Dave App?

Dave is a low-cost banking membership app that offers customers fee-free checking as well as up to $75 in interest-free advances. All you do have to pay is your $1/month membership fee.

In addition, when you connect your debit card to the Dave app, it will automatically create a budget for you. The budget can help you predict whether you’ll run short on cash before your next payday.

What Makes It Special?

Dave is a bank, but without all the fees. Dave is currently rolling out a checking account of its own that automatically builds credit by reporting on-time rent payments to the credit bureaus and offers the option to advance up to $100. Dave members can sign up on the checking account wait list to gain early access.

The thing that makes Dave special is really the cash advance feature. As a member, you may qualify for an interest-free cash advance of $25, $50, or even $75.

Should You Download Dave?

If you anticipate needing a cash advance, it makes sense to download Dave. It costs $1/month, which is where my hesitation comes in. Then again, if you’re frequently using overdraft fees of $30 or more to cover budget shortfalls, Dave makes perfect sense for you.