BANKING BASICS & WHAT TO LOOK OUT FOR 2

You receive a check payment which you deposit in your bank account. Don’t assume that you can immediately withdraw or write a check against it.

Out-of-town or out-of-state checks take as much as a week before the amount is actually entered into your account for withdrawals or writing checks against. If you happen to write a check before the amount is actually in your account, your check will bounce –which, in addition to causing much embrassment, will cause a penalty to be charged against your account and do some damage to your credit standing.

To save you from overdrawn checks, banks offer overdraft protection. Fees for every overdrawn check that the bank honors can be costly (in some banks, as much as $35). In addition, interest is charged on the amount of the overdraft until it is fully covered.

The best thing to do is be aware all the time of how much money you have remaining in your account (this is what the check stubs are for). Also, give an allowance of at least a week before you withdraw or write a check against out-of-town checks you receive.

image from Microsoft Clipart