Does your bank charge for a bounced cheque?
By breepeace
@breepeace (3014)
Canada
January 29, 2009 2:43pm CST
I just got a notice in the mail the other day from my bank that they are increasing the NSF (Non-sufficient funds) fee for bounced cheques from $40 to $42.50. The last time I checked, it was only $35. It seems a little ridiculous for them to charge such a hefty fee for something that could so easily be a mistake (and which I'm sure doesn't cost THAT much in administrative costs to remedy), not that I've ever had a bounced cheque.
What about your bank? Does it charge a fee for bounced cheques? How much? Do you agree with it?
2 people like this
5 responses
@spalladino (17891)
• United States
29 Jan 09
As far as I know my bank still charges $35 for overdrafts but I haven't been nabbed since we opened the second checking account. My husband and I try to stay on top of our money, and it's pretty easy to do so with online banking, but there was one time when an automatic debit caused an overdraft. Since we opened the second account we have overdraft protection which allows the bank to draw funds from one account if the other is short but, so far, we've never had to take advantage of the service. Knock on wood. 
@explorations (1712)
• United States
29 Jan 09
Yep, they have a $25 fee for all bounced checks. I don't agree with it, but there's nothing I can do. Banks around here have been doing that for as long as I can remember.
2 people like this
@laglen (19759)
• United States
29 Jan 09
I think my bank is $20. I try not to find out. I do think it is fair. Checks are for money you have not what you might get!
@eshaan (6188)
• India
2 Feb 09
yes, it is everywhere i think, in India too its like that. But I wonder if the charges are so high. The cheque rules are made very strict here, if u have to take money from someone and he has given u cheque, and if there is no amount in that person's account then u can file a case on him after getting his cheque bounced from bank.
@rocketj1 (6955)
• United States
29 Jan 09
It should be costly. They are covering money for you that essentially does not exist. People would purposefully overdraw if they were allowed to do it inexpensively. What a mess that would be!
I'm not happy about it when it happens, but I understand why they must charge so much.
1 person likes this
@breepeace (3014)
• Canada
29 Jan 09
In this case, they don't cover the money for you. My bank charges $5 plus interest for an overdraft fee IF you qualify to have the account, overdrawn. The $42.50 is specifically for a bounced cheque, in which case you still owe the money to the person who cashed the cheque.
1 person likes this
@rocketj1 (6955)
• United States
29 Jan 09
You obviously pay the check if it went through. But the bank pays the difference that was not in your account. Most stores here charge an additional fee for an overdraft (around $25). Our bank covers the check without telling the store that you are overdrawn, saving you that extra charge (fortunately). Otherwise, I'd have to pay THAT too!
Either way, a check is a way of saying to a store that you HAVE that amount sitting in the bank. To bounce at check at their establishment is to underpay them. That wouldn't make me too happy.
@breepeace (3014)
• Canada
29 Jan 09
No, I think you're misunderstanding. There is an overdraft fee that you can pay if the bank approves overdrawing your account to cover the amount of the cheque. The fee for this is $5 plus interest.
If the bank chooses NOT to approve overdrawing your account, then the bank charges $42.50 as a NSF fee, and you still owe whoever you made the cheque out to, the full amount of the cheque.
This is why I think the fee is too much. It's to cover administrative fees, NOT to cover the amount of the cheque itself.
1 person likes this
