Are you worried every time you open your most recent monthly bank statement that you got hit with more fees this month? Are you getting tired of forking over all that money to your bank just to do business with them? In this article, I will talk about ways you can prevent most of these fees and charges. More bounced check information: Payday loans Atlanta.
Overdraft and bounced check fees are one of the most common unnecessary fees that consumers pay their banks each month. But there are ways to avoid paying these fees. First, you wanna know what your balance is. Using mini reconciliations and, when necessary, monthly bank reconciliations, as I described in my last article, will enable you to know what your balance is so you do not go over. The bank cannot charge you these fees unless you go over on your checking. Also, if you bounce a check for an expense that you have on a regular basis, the company whose check you bounced might start demanding that you offer them a money order, maybe even a cashier’s check, and that would cost you extra money every month, not to refer to the hassle of having to do this.
Something else that you should consider doing is to delay recognition of most paper checks that you deposit into your account. I know this strongly goes against conventional wisdom, or anything you probably ever heard. And I know that for some people who’re struggling to make ends meet, it mightn’t be possible without borrowing money at a high level of interest. I am not talking to these people because they would probably have to pay more in interest than a bounced check fee or two to be in a position to do this. But for everyone else, there is a good reason for doing this. Basically, checks can and do bounce. And you might be surprised what types of checks can bounce. One of my former employers wrote me a paycheck that bounced! This caused me to overdraft and get hit with two overdraft fees. After that incident, I instituted a rule on myself where I won’t record a paper check that I deposit right away unless it came from a trusted friend or family member who I trust to dispose of the funds in their account to back up the check, or if it is on the basis of the federal government. By definition, a check from the federal government cannot bounce, since they can print all of the money that they need. I wait until somewhere between the seventh and the eleventh business day after depositing the check to record the check in my checkbook if and only ifI go to the bank in that period and get a receipt with my current balance per the bank on it, for all other checks. In that case, it has then been long enough that I can determine using the current balance per bank if the check cleared. The bank tellers cannot simply tell you this. I already tried it. Basically, it takes about a week for a bad check to go through the system and be taken back out of your account. If the check isn’t local, then you should add two weeks to this, and likewise to the time that you would wait to register the check in your checkbook. If you don’t go to the bank during this period, then starting on the twelfth business day after you deposited the check (the 22nd business day for a non local check), the next time you check your mail, if there’s nothing in there that says you shouldn’t record the check as good money, then you should record it at that time. Once the bank takes a bad check you deposited out of your account, it takes them another week to notify you by mail. I saved myself three overdrafts just by instituting this one rule on myself. This is as it is the number of times I had a bounced paycheck with that same employer after the initial one! Yes, I already know what you’d be saying. You might be saying that there is the potential cost (and in a few cases, an actual cost) to do it this way. But you have to compare that to the possible cost of an overdraft in order in order to determine whether the gamble is worth it.
Receiving direct deposits instead of paper checks whenever possible is a particularly good idea. Not only can a paper check get lost or stolen in the mail, but it can also bounce, and if the check is large enough, then you’ve got a hold placed on the money by the bank which could be greater than what you would have otherwise delayed recording it by. And if a paper check bounces, you get hit with a returned deposited item fee, to boot. These vary. However, they can be $20. – $30. At some banks. However, there is another good reason to receive a direct deposit whenever possible rather than a paper check (and this is particularly true for paychecks and for monthly retirement checks). At some banks, if you have direct deposits in a given month totaling at least a certain amount, then they’ll waive the monthly service charge. And usually, your paychecks or monthly retirement checks will be sufficient to qualify for any such release. At one of the banks I use, this amount is $500. In a month. If you have direct deposits in a month totaling $500., then they’ll waive the $12. Monthly service charge. Click this link; Online payday loans in Georgia.
If a parent or your Great Aunt Lil gives you a personal check for Christmas, the bank will usually hold such deposits for anywhere from three to 10 days, especially if it is a out-of-town check. This is to verify that the check writer does not pass a bad check. You may be in a position to access a portion of the money– like the first $100– during this holding period but it depends upon your bank. Cash, paychecks, and postal money orders are usually available right away, however, this can depend upon your selected bank or credit union. Some money order deposits will be held in order to guarantee the document isn’t fake. Deposit holding policies are usually much stricter in the initial several months that your checking account is open.
You can write checks to pay cable bill, your rent, and even groceries. But keep into account the fact that the money must be in your account or the check will ‘bounce ” when the check recipient deposits the check into their bank account. This isn’t only embarrassing and financially destructive to your personal spending plan, but also illegal. Every state has criminal prosecution laws that can apply to bad checks.
Unlike direct deposits, which are a very good idea, automatic debits are a very bad idea if you are able to avoid them. I know that there are some situations where it isn’t possible to avoid paying a company you do business with with an automatic debit, but these shouldn’t be used unless they can be avoided, and you should stop having them automatically debit your account as soon as possible if it’s possible. There are two reasons this is true. First, if there is an error and they take too much money out of your account, or if they debit your account too often, then YOU get stuck eating it! Second, it can become a challenge to remember to record these automatic debits, especially if you’re many of them. And if you forget just one automatic debit, then you can overdraft your account or bounce a check, and then get stuck paying fees for doing so.
Some people have overdraft protection on their checking account. Basically, there are two types of overdraft protection, neither one of whom is a good idea. The first type of overdraft protection is the one most people think about. This is where your bank will, at their discretion, possibly pay a check or accept a debit card transaction, against insufficient funds. Then they’ll charge you a fee for this and require you to make a deposit right away. However, it is better if you know how many you have in your account and avoid what is basically, a very high interest, very short term loan. The other type of overdraft protection is where you link your savings account to your checking account in such a way so that if you go over on your checking account, the bank will pay a check or accept a debit card transaction that comes in if you’ve got enough money in your savings to cover it. However, this isn’t a good deal either because they’ll charge you a fee for every time you’ve got to have money moved automatically from the savings to the checking account to cover a transaction. And they’ll move just enough money over to finance the transaction plus the bank fee. But some banks will manipulate the order that they process transactions so that they are able to charge more fees. I have heard that some banks will record the largest charge to your checking account first, then the second largest, and so forth. I do not know if it is true. However, I would not be surprised if either of my mom’s former banks did do this to her. A bank that does this trick could get a ton of unjustified fees because it will take fewer transactions to get your account overdrafted. This leaves more transactions for which they can charge an overdraft fee, a bounced check fee, or a transfer fee, whichever one (s) may apply. That bank actually did do something similar to her that finally caused her to get mad enough at them to leave that bank. This bank would hold back any deposit made in any particular day, and if any charges came in that day, even though they came in later that day, that bank would record the charges to her account first before they recorded the deposit. This enabled them to get more fees out of my mom who did have the savings account based overdraft protection. They charged my mom a ton of transfer fees that would not be justified if each transaction were reflected in the order that it was received. Thankfully, neither one of my banks, to the top of my knowledge, do these tricks to me. But it would be worth checking that out on your bank statement to find out if your bank does either one or other of these tricks on you.
There are many ways that banks can hit you with a fee here and another fee there. But most of these fees can be prevented if you always find out how much is in your account, if you do not record most checks you deposit right away, if you receive direct deposits as often as you can, and if you avoid automatic debits as much as possible. Most bank fees are charged because you were not paying attention. You made a mistake that allowed them to whack you with one or more fees. While most of these fees are relatively small, they do add up over time, especially if your bank is in a position to hit you with multiple fees at once.