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How One NSF Fee can Turn Into Three

Banks are under no obligation to process checks in numeric order. Let's say that you have enough money in your account to cover two of three checks and fully expect the last one to bounce. If all three checks show up on the same day at the bank, you could get bounced on all three.

If you have $100.00 in your account and you write three checks in these amounts and order, $20.00, $30.00, $105.00, you may expect that the bank will clear the first two and bounce the last. Banks routinely clear checks from the highest amounts to the smallest if several show up on the same day. In this you will bounce all three and rack up three NSF charges. At $35.00 - $40.00 a check, you will quickly find your bank account decimated. If you expect to incur an NSF fee on one check, make sure that the highest amount is written last and at least a couple of days after other checks.

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This page contains a single entry from the blog posted on July 24, 2008 6:25 AM.

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