Will my check bounce?

November 29, 2010 1:55 PM

Can a check I write bounce if I deposited a higher value check a couple of days before the date on the check and made no purchases in the meantime?

Basically, if I had no money in my US bank account, deposited a $700 check on the 24th, and then wrote a $500 dollar check dated the 26th, is there any way the $500 check will bounce, for lack of available funds? I mean assuming that the deposited check will not bounce, but might take some time to clear.

posted by vlsd to Work & Money (11 answers total)

I say it's possible if the 500 check clears before the 700 one does. I also say it's up to the individual banks how they handle this.

Totally worth calling your bank's customer service line and asking, just to save yourself the bounced check fees.
posted by royalsong at 1:59 PM on November 29, 2010

Yes, it could bounce. It depends on how quickly your bank makes deposited funds available, as well as the speed of the bank from which your $700 deposited check is written and the bank into which your $500 written check is deposited. The best way to avoid this situation, in my experience, is to cash the $700 check at your bank and then deposit the cash. At least at my bank, cash deposits clear immediately.
posted by decathecting at 1:59 PM on November 29, 2010

Yes, this can happen, depending on the policies of your bank. I've seen 5 business day holds on deposits, so if the 24th were a Friday and the 26th a Sunday, it might not be until the following Friday--the 31st--that the funds are credited to your account. In the meantime, the check you wrote bounced. (Obs. I'm just making up dates; I presume you're talking about November 2010.)

Check with your bank.
posted by Admiral Haddock at 2:01 PM on November 29, 2010

Also, be aware that at the end of each day, when a bank processes all of your transactions for that day, they usually process the withdrawals first, and then the deposits. I think they like collecting those bounce fees.
posted by Melismata at 2:09 PM on November 29, 2010

When did you give the cheque dated the 26th to whoever you gave it to? Banks can cash cheques upon receipt and do not check to see if they are post-dated.
posted by jeather at 2:13 PM on November 29, 2010

From my understanding of the new rules put in place in 05 ( I think) a bank can and will hold any DEPOSIT you make for 3 business days to make sure it "clears." Any withdrawal you make, however, will get recorded the day it is received. So it really depends on who or what you wrote the check to, and when they deposit it.

This is how they get you with overdraft fees, you deposit your check think you have 500 bucks in the bank and withdraw the next day from an ATM or pay with debit for a cup of joe and bam, 30$ "overdraft fee."
posted by Max Power at 2:24 PM on November 29, 2010

Something unusual could also have happened to the account before either the deposit or the withdrawal arrived at the bank. If there's no money in the account, and the bank tries to process a fee or a long-lost check or a regular scheduled withdrawal, it may well start piling on more fees. One such incident could eat through more than $200 of the deposited $700, meaning that there'd be insufficient funds when the $500 check gets processed.

Or the bank may freeze the account for some reason and then the $500 check wouldn't go through.
posted by galadriel at 2:27 PM on November 29, 2010

Can you check your account balance online? I am guessing that it will likely bounce. The check you deposited has to have time to clear. Maybe you have an overdraft protection to help you.
posted by JayRwv at 2:55 PM on November 29, 2010

depending on your bank's policies, yes, it most certainly can. my bank, chase, will clear an item for a larger amount first before smaller amount items. the larger amount gets paid for, and if you do not have enough funds in your account, the smaller amount items will bounce and accrue overdraft fines. this pretty much assures that a number of smaller items will accrue fines rather than having all the smaller amount items clear and then the one larger amount item be the only item be the one to accrue fines.
posted by violetk at 3:51 PM on November 29, 2010

Assuming you can, check your balance on line. It should give the total balance versus the available balance.
posted by Short Attention Sp at 4:43 PM on November 29, 2010

Best answer: All other things being equal, the date on the check you wrote and the date you deposited the other check are immaterial; the date the check is cashed and the date the funds become available are the dates that matter. Your bank may have different rules, but that would be the exception rather than the rule. This is why some people post-date checks, to prevent their deposit before the known fund availability date -- but some banks will cash it anyway, so that's not a good method.

In short: contact the person you gave the check to, and ask them to hold off on cashing until the day after the funds are scheduled to clear, or get some cash in there stat.
posted by davejay at 5:08 PM on November 29, 2010