You Can't Beat The Check Back To The Bank

BUT I MADE THE DEPOSIT THE SAME DAY THE CHECK CAME IN!!!
I don't know how many times I have heard that phrase. The problem is that your check, if it is not taken right into the branch, will clear through your account before your deposit. Checks that come through the Federal Reserve system arrive at your bank during the night. Yes banks have departments that work through the night processing transactions. Your deposit on the other hand, unless it is delivered electronically, will probably not be available until the next morning or later depending on what fed zone the check came from and the $ize of the check. Larger checks can have delayed availability. I will cover different ways checks clear and fed zones in a different blog. The point to all this is this, if you write a check and the money is not in your account you are taking a chance of getting a hefty fee for each check that bounces. Another process that you must watch out for is "Converted Items". Companies that recieve your checks now have the right to turn them into an electronic transaction. That means they come back a lot faster and you could get caught with your balances down if you were counting on a few extra days before the check gets back to your bank. More on all this later.

It's all down to you,

When I was in banking and I had a customer that had bounced checks my first question would always be "Have you balanced your checkbook?". Many times the answer was "no". Unfortunately that is becoming an all to familiar response. You are expected to balance your checkbook. If you want your banker to be on your side that is the first step. Why? Checking accounts are in constant change. Money goes out. Money comes in. Fees are deducted. Balancing is a way to put all the movement of money into one place and see where you are. I have had some half hearted attemps like checking balances on ATM machines or Online Banking. That is a step in the right direction, but what about that check you wrote yesterday? How about the automatic payment you forgot about. They haven't come in yet, so they aren't reflected in that balance. If you spend that money without considering your outstanding debits you are asking for trouble. This is why balancing is so important. Those outstanding debits that are floating around out there are taken into consideration and gives you the proper picture of you finances. The fee for bouncing a check can be significant. Don't give your money away needlessly.