|
|
 |
| |
|
Home > Banking Services > Checking > Avoid Bouncing Checks
Avoid Bouncing Checks
With today’s checking policies and changes, it is more critical than ever before to avoid bouncing checks. When you deposit a check in the bank, it usually travels by air or land until it gets to the paying bank, normally a couple of days later. However, because of Check 21, electronic processing is becoming more common, and that means checks are processed more quickly than before. Therefore, you need always to have enough money in your checking account before writing a check or risk your check to bounce. Some people are used to write a check with insufficient funds expecting an income to arrive before the check is cleared. With Check 21, this practice is more risky than it used to be because checks are being cleared much sooner due to the electronic system. Bouncing a check can have costly consequences. Fees for bounced checks are generally in the range of fifteen to thirty dollars per check.
The first step you should follow if you want to avoid bouncing checks is keeping up to date your checkbook. Do not forget withdrawals you make at ATMs, bank fees and purchases with debit cards. Always put side by side your checkbook with your monthly bank statement to evaluate each item. Try not to rely only on your ATM receipt for balance data as these documents typically do not reflect debit card transactions or outstanding checks. If you have a joint account, ensure you are familiar with the amount of money of each check, debit card purchase, or ATM withdrawal that the other person is carrying out. That way, you can avoid overdrawing the account without realizing it. Finally, consider carefully the advantages and disadvantages of signing up for an overdraft line of credit, that is, that you allow the bank to cover checks you write automatically even if you do not have enough money in your account.
Banking Services Lending all are
here at BankerBanker.com Permission is granted to reproduce this article as long as the above resource paragraph is left intact with active links.
Back to Checking
|
|
|
|
|
|
|