What is overdraft protection? Do I need it?

Overdraft protection is a line of credit that protects you from bouncing checks. If you write a check, yet have insufficient funds in your account to cover it, overdraft protection automatically draws money from your line of credit to make sure the check goes through. It’s a particularly convenient service for those who are self-employed, because if business is seasonal, there are likely times of the year during which you have low cash flow. Overdraft protection can help you pay less interest than other forms of borrowing.