Tips for Keeping Your Checking Account Balanced

Source: BALANCE Financial Guide

A checking account is a contractual relationship between you and your financial institution, with each party having specific responsibilities:

• The financial institution holds your money in a safe place and helps to facilitate your purchases
• You are responsible for handling your account wisely by not overspending the money you have in your account

Rejected or Bounced Checks
If you write a check for more than is in your account, the check will be rejected when it comes in for payment. It will be sent back to the person who deposited it and you will be charged for “bouncing” it. The merchant you wrote it to will not only charge a returned check fee, but the law enables the merchant to charge you for up to three times the amount of the check. In addition, you may be subject to court proceedings and be required to take special classes on money management. One bad $12 check could cost you a lot of money! 

Do not write a check before you make a deposit, counting on the “float” time. With the electronic nature of banking, a check can clear the financial institution the same day you write it.

Overdraft Protection
Many financial institutions will offer you overdraft protection through your credit card or 

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