FYI - - A new way of your bank processing checks

[Dawn]

Check out this link

Link

Dawn  

[Jeff]

Hot tip...

Don't have the $ in your account?
Don't write the check...

Follow this method and you'll never have a problem  ;D  ;D  ;D

[Dawn]

Exactly!  

 ;)

[dylanfan53]

Hot tip...

Don't have the $ in your account?
Don't write the check...

Follow this method and you'll never have a problem  ;D  ;D  ;D

Well, kinda, sorta, but not exactly.
The problem is, your deposits still need time to clear.  So if you make a deposit today and write a check on it your check will bounce.  Was your money in the bank while it waited to clear??
Well, kinda, sorta, but not exactly.
I have a feeling there will be some upset people when they get hit with bounced check charges.  :(

[spyderchick]

A typical payroll check is assumed to clear the same day. However, sometimes they will hold for 1 day, you can avoid this by direct deposit or cashing the check yourself and physically taking the cash to your bank to deposit. Most banks have cut off times for deposits to be posted "same day". Check your bank's/CU's policy.

Most personal checks written "locally" will post next day. Again, check with your financial institution.

Finally, almost all larger checks have a "hold" period in which the funds are in your account, but subject to clearing times. My bank it's 10 business days. So if you sell a car or bike, you might want to hang onto a title until the "check" officially clears, or require a cashier's check or money order.

Business accounts are subject to different rules than personal accounts. Talk to a bank officer if you have questions to avoid any problems.

[hi-side_racing]

They were trying to take the "float" out of checks... float costs money. 3-4 days of float on a couple hundred million a year is a very large number (about $33k per 100 M - free money if you can collect faster)

I used to teach undergrad and grad level finance and when we got to the "float" subject, you'd be surprised how many different ways there are to add time to the float that aren't in the normal processing procedures, and basically toss the processing into a manual route rather than automated (generally adds a day onto what was a normal float of about 3 -5 days which includes mail float) .

Here are a few that some of the guys in my classes came up with, and we aptly named them after the creator...

Mike Float - tear the corner off that has the serial number on it, so that it has to be processed manually.

DeeDee Float - just tearing a check anywhere on the check just a little so that it has to be processed manually, otherwise it gets slightly shredded.

Dan Float - Use a felt tip pen and when you sign, loop thru the serial number making it hard for the scanner to read.

It did help that most of these people also worked for American Express and had a very good understanding of how the processing actually works...

Be creative... come up with your own...

Even if you have the money, its better that the float works for you, rather than the bank.

[Jeff]

The deposit/debit thing differs by each bank.  My bank does a daily deposit/debit, in that order.  Back in the early 90's they were reverse (for a short period of time), so debits ran first before deposits.  When a few thousand accounts bounced and called to complain they swapped it.

hmmmm...  I wonder if I tore off the corner of Terry's # on his racebike, if he'd have to be manually scored so I'd get to beat him.  ;D ;D ;D ;D LOL...