"I can't be overdrawn," the joke goes, "I still have checks!" Clearly that is not the way things really work. You are responsible for knowing how much money is available in your checking account, even if your bank is not always providing the most up-to-date information. Banks do, however, provide some tools to help.
Keep Track
When you deposit a check the bank credits at least a part of the money right away. The Federal Reserve's Rule CC requires the bank to provisionally credit at least $100 in most cases while the check is set to a regional clearinghouse. Out-of-state checks can go through more than one clearinghouse before the bank actually receives the money. Unless the bank has a good reason, it cannot hold your money once it has gone through the clearance process. The easiest way to see if you have outstanding checks is to keep a running tally of deposits and checks written. Whenever you write a check, withdraw money from an ATM or use your debit card to pay for something, write it down in your check register. Do the same when you make deposits, and keep track of the amount of money remaining in your account. Remember that deposits can take up to three days to be credited in full and the money is not available until it is credited to your account.
Read Statements
Every month your bank--or credit union, or other financial institution--sends you a statement listing the deposits and withdrawals in and out of your account. When the statement comes, check off the transactions that are on the list in your check register. Balance your checkbook by adding the amount of your deposits, subtract the amounts you spent to get the amount you have left. You can also use basic bookkeeping software to balance your checkbook. Be sure to note of the date the statement was issued, as things are likely to have changed since then.
Ask
If you haven't seen it on a statement, go to the branch. Teller and branch officers have access to your account information on their computers. If you have the check number and the amount the bank can scan the recent transactions to tell you immediately if the money has been deducted from your account.
ATM
You can always check your account balance at an Automated Teller Machine (ATM) 24 hours a day. Most banks let you use a debit card for ATM transactions, as well. Some stores run the debit card as a credit card so you don't need to input your four-digit access code but the money is immediately from your checking account.
Almost all ATMs also allow you to check your account balance and many give you the option of a "mini-statement," a list of the last several transactions, whether deposits, withdrawals or cleared checks.
But remember, you can't just trust the balance that the ATM gives you. Banks use a system of holds, when money is transferred between accounts by any method. Not even all your debits are automatically deducted from your checking account instantly. These days money comes in and goes out from your checking account in various ways in addition to depositing cash and writing checks. That includes direct deposits from your employer and Automatic Clearing House (ACH) or electronic fund transfers. Always keep your ATM receipts, direct deposit notices and the like, and enter them in your check register at the end of the day.
Online Banking
Another way of tracking account activity in real time is to sign up for online banking, which lets you perform most transactions, including seeing which checks have cleared on your computer or smart phone. Online banking usually includes a bill paying service. Instead of writing checks, you type in the amount and date it is to be paid and the bank transfers the money electronically. The money is deducted from your account when the transfer is made and sends you an email notice, if you choose. That way you don't need to wait to see when the check clears.
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