It is not uncommon for somebody to experience the stigma of the dreaded bounced check, but what many find worse than the shame are the plenitude of fees involved, including the overdraft fee and the bounced check fee levied by the bank. And this will also include a fee charged by the entity that had taken the check and accepted it. This is why we had written this quick and simple article -- we want you to learn how to avoid these bounced checks and the associated fees. You want to be vigilant about the activities that happen in and within your checking account, meaning all cash coming in and going out.
Make sure you always update your register each time you perform any activity on your checking account, regardless of what it is. This would encompass a wide range of activities, which is not specifically limited to the following: cash withdraws made via ATM, checks written, payments made via usage of your account to settle bills or other expenses, debit card purchases, etc. Any time that you do any of these actions and do not have the proper amount within your checking account; it will result in your account being overdrawn.
Your bank would have a few alternatives at its disposal -- first, they could attempt to pay the amount you owe even if you do not have enough funds on your account to cover the payment. If they choose this option, you will be charged what is called an overdraft charge. Depending on your bank, they may also opt to return the check to you and mark it as NSF, or Non Sufficient Funds without paying even a single red cent on the amount due -- this would have you charged with a return check fee from both the bank and the merchant you are transacting with.
Avoiding the fees, as you may surmise, can be achieved by being meticulous with your register -- consistency is key, and every single action made thereof, may it be a purchase, withdrawal or the assessment of a fee, must have the requisite documentation. Ensure that your register is perfectly balanced, as you would want to have a real-time log of what you have available and what is not yet available heretofore. In addition, you should also ensure that all online payments and direct debit payments are accounted for, especially when this is concerning utility bills or other related expenses. Each time you receive your statements in the mail, make sure they are balanced and checked against your register. This allows you to ascertain whether checks have cleared or have yet to clear the bank.
To avoid being charged extra fees in case of human error, it would be necessary for you to not waste any time in depositing the correct amount into your account, as financial institutions usually have a low threshold for even common mistakes. It is also possible that your savings account be linked to your checking account, so that way, you have a "fall-back" in the event you make a mistake that might lead to fees being assessed. Alternatively, you can also bank to "lend" you some money in case of overdraft situations so that you can be covered in any situation where fees may be assessed for one reason or another.
Make sure you always update your register each time you perform any activity on your checking account, regardless of what it is. This would encompass a wide range of activities, which is not specifically limited to the following: cash withdraws made via ATM, checks written, payments made via usage of your account to settle bills or other expenses, debit card purchases, etc. Any time that you do any of these actions and do not have the proper amount within your checking account; it will result in your account being overdrawn.
Your bank would have a few alternatives at its disposal -- first, they could attempt to pay the amount you owe even if you do not have enough funds on your account to cover the payment. If they choose this option, you will be charged what is called an overdraft charge. Depending on your bank, they may also opt to return the check to you and mark it as NSF, or Non Sufficient Funds without paying even a single red cent on the amount due -- this would have you charged with a return check fee from both the bank and the merchant you are transacting with.
Avoiding the fees, as you may surmise, can be achieved by being meticulous with your register -- consistency is key, and every single action made thereof, may it be a purchase, withdrawal or the assessment of a fee, must have the requisite documentation. Ensure that your register is perfectly balanced, as you would want to have a real-time log of what you have available and what is not yet available heretofore. In addition, you should also ensure that all online payments and direct debit payments are accounted for, especially when this is concerning utility bills or other related expenses. Each time you receive your statements in the mail, make sure they are balanced and checked against your register. This allows you to ascertain whether checks have cleared or have yet to clear the bank.
To avoid being charged extra fees in case of human error, it would be necessary for you to not waste any time in depositing the correct amount into your account, as financial institutions usually have a low threshold for even common mistakes. It is also possible that your savings account be linked to your checking account, so that way, you have a "fall-back" in the event you make a mistake that might lead to fees being assessed. Alternatively, you can also bank to "lend" you some money in case of overdraft situations so that you can be covered in any situation where fees may be assessed for one reason or another.
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