There's always that one friend who lends you money. When you're short and you need instant cash, they're there. Unfortunately, they're not always around to save your skin from overdraft fees.

Bank services lack decent overdraft fees notifications. Sure, they'll send you an email if your balance goes below the minimum required. However, that's not enough to keep things in check for many millennials.

That's where Dave comes in.

What Dave Can Do for You

Dave will help you plan for upcoming expenses. You can schedule repeat monthly expenses. For example, you can add your mobile phone, data, and Netflix subscription. Then, you can have the app charge you on repeat.

Subscribing to Dave's service for just $1 a month is outrageous. If you consider the fact that he lends you up to $75 without interest, paying $12 a year seems light!
In addition, Dave provides budgeting tools and predictive alerts. For example, he'll warn you that the phone bill will bring bank account overdrafts this month. Then, Dave will offer to give you a no-interest $75 loan. The app automatically deducts the borrowed fee until your next paycheck without any interest fees. Nice!

According to Dave's founder and CEO Jason Wilk, almost every single Dave employee had overdraft problems. The app's slogan is "outsmart overdrafts."

By syncing it with your checking accounts, the app will monitor your spending habits. It will send you a notification informing you to stop spending so much or face the consequences. Unlike standard bank communication, Dave will anticipate bills and your budget habits.

The Downside to Dave

Of course, there are some drawbacks to this particular service.

Some find the Dave app a bit controversial. It will, after all, ask for permission to access your checking account data. However, according to Jason Wilk, they have no plans of selling your financial histories to third parties.

Sharing your data makes it convenient for Dave to get your loan repayment from your account during payday. That is unless you're comfortable paying $10 to pay by check.

Another weird side to this financial app is something banks wouldn't do: ask for tips. While it stresses that this is 100% voluntary and causes no service alterations, it might cause some controversy.

However, Dave's useful insights into a user's financial territory make every tip worthwhile. In addition, the app promises to plant a tree in select locations per tip percentage you add. Dave collaborates with in helping both individuals and the earth one notification and loan at a time.

In a recent CreditKarma article, overdraft fees are a major problem. In fact, it has reached over $15 billion in overdraft and bounced-check fees. What was the government's solution? You'd never guess it was something similar to Dave. They urged consumers to purchase overdraft protection instead. This makes apps like Dave the most relevant solutions to overdraft problems.

Dave is targeting millennials. However, older generations should also consider the benefits it provides. The smart application is not only helpful as a rainy-day friend. It actually helps you develop better financial discipline and avoid humongous bills and penalties in the process.

In this age of technology, apps like Dave will become commonplace. Will they be useful for you? Share your answer below!

Author's Bio: 

Author, Freelance writer