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How to Keep Your Checking Account in Good Standing

When you have recently gotten started with a new second chance checking account, or a regular checking account, it is important to keep your account in good standing. In this post, we will go over tips on how to do this effectively.

Spend some time reviewing your monthly bank statement each month as it comes. There is no harm in taking time to compare what is reflected on the statement against what was written on your check register. To avoid getting into a bad credit standing, or a bad ChexSystems record, put the Internet, automated cash machines, and telephones into good use in obtaining the freshest information about your account. However, some banks charge minimal fees for using these services.

Another tip is to know your checking account balance by keeping your checkbook updated regularly. Most of us use are already users of online banking, and we can simply log on to your account to check your transactions and balances. Additionally, you can set up email and text alerts to be reminded of your available account balance.



Next tip is: be certain that funds are available before writing any check to avoid “floating checks”. A floating check, by the way, is a check written before funds become available for withdrawal. When you deposit a check into your account, the balance usually takes 2 days and as many as 5 days to become available for withdrawal.

You may write a check to someone thinking there is enough funds available because of another check you deposited earlier. But before you do that, make sure that the check have actually cleared and the funds made available balance for your use.

Aside from the checks that you have written, do not forget to deduct all fees, including ATM and other debit transactions, payments made online, and automatic bill payments that you have set up (for example insurance, loan payments, and utilities, among others). This way, you can avoid writing more checks than the money that is available in your account.

Another tip is to familiarize yourself with the bank charges and the manner of processing checks. Sometimes, banks process checks with the largest amount first. When the first check bounces, it is more likely that all the checks processed that particular day will bounce, each with a corresponding charge. Sometimes, it is inevitable to write checks for more than what is in your account.

It is best to know if your bank offers overdraft protection. You can use it to effectively maintain a sound financial reputation. However, overdraft protection can be a double-edged sword. It must be monitored judiciously. Use of the overdraft facility can result in fees in the range of $25 - $35 for each use. Here is a related article: Checking account overdraft fees on the rise.

Overdraft and other bank fees can add up quickly. If you do not have enough funds in your account to make good these extra charges, it could lead to your account being suspended and worse, reported to ChexSystems. A good approach is to keep a savings account linked to your checking account, so that when you discover that there are not sufficient funds, you can make a fast transfer.

Keep these tips in mind so that you can keep your checking account in good standing. Checking accounts are the gateway to a mainstream banking relationship. They are very useful for managing our finances and paying bills, and often considered a cornerstone to establishing good credit. For these reasons, it is worthwhile to put some effort into protecting your checking account status and banking reputation.

If you are interested, you may also want to check out this related article: Checking Account Mistakes The Lead To ChexSystems Problems

As an alternative to a conventional checking account, consider a prepaid Visa card account with no ChexSystems requirements. It works just like a checking account, allowing for direct deposit of paychecks and online billpay (one-time or recurring payments). You can deposit cash into the account from 135,000 retail locations nationwide. In addition, the card can be used anywhere Visa is accepted. Click to learn more: The Perfect Alternative to a Checking Account!


The perfect alternative to a checking account