Feb 4, 2012

Insufficient Funds

If you are a newlywed and not a custom to managing your finances such as your check book one of the worst things you can see on your bank statement is insufficient funds or not sufficient funds. This is a term used by banks that simply means you have written a check and the available balance in your account is not sufficient to cover the amount.

There are financial consequences that will affect you. The fees that are charged when this occurs can be substantial. In most cases your bank will charge you an overdraft fee and there will also be a fee from the person or company you wrote the check. The fees may very depending on the bank policies. If this occurs you should try to rectify the situation immediately and it should not affect your credit or status with your bank. Another consequence would be your check will not be except by the business or person it was issued to in the future.

One way to prevent having a check returned on your account would be to have overdraft protection from your bank. You may have your savings account link to your checking account or a credit card or a line of credit set up especially for this purpose.

It is a good idea to have online banking from your bank as you can check on your account balance and available funds on a daily basis. This would prevent you from writing a check for insufficient funds as you would always know what your available balance would be.

No comments:

Post a Comment

Thanks for the Comment. I will visit your blog soon.

I Disclose:

This policy is valid from 24 May 2011. This blog is a personal blog written and edited by me. For questions about this blog, please contact ADMIN in the comment section in any post. This blog accepts forms of cash advertising, sponsorship, paid insertions or other forms of compensation. The compensation received may influence the advertising content, topics or posts made in this blog. That content, advertising space or post may not always be identified as paid or sponsored content. The owner of this blog is compensated to provide opinion on products, services, websites and various other topics. Any product claim, statistic, quote or other representation about a product or service should be verified with the manufacturer, provider or party in question. It is the sole responsibility of the readers to verify the product endorsement as legitimate.