New payment systems mean new and faster clearing of checks. “Float” – the time between making the payment and when the money is removed from your bank account, has been substantially reduced. What used to take 3-7 days can now be done in hours. The best advice: To avoid bounced checks and overdraft fees, make sure you have enough money in your account when you initiate a payment. Good account management is the key to avoiding bounced checks and overdrafts.
Carrying a Cushion – Making sure you have more money in your account than you will spend is the best way to avoid overdrafts.
Monitoring Your Balance – When in doubt about a payment, check to see if you have the money to cover it. Keep up-to-date records of your payments. You can easily check your account by phone, ATM, or online. Knowing your personal balance and what transactions have been authorized but have not yet cleared your account are very important to know in avoiding overdrafts.
Establish a savings account or line of credit - Carson Bank offers savings accounts and/or lines of credit that may be used to avoid overdraft fees. A savings account can be tied to your checking account and automatically transfer funds to your checking account in the event it becomes overdrawn. A small $2 fee is assessed, but saves you larger overdraft fees. A line of credit may also be established to automatically transfer to your checking account. You would need to qualify for a line of credit and interest would be assessed.
Please contact any of our customer service representatives M-F from 8am-5pm for further details.
For more information, please click on this link: Overdraft Protection & Your Bank
