Check Writers Beware!

New Check clearing rules go into place effective 28 October. If you are not familiar with these changes and write checks it's time to read up on these changes. Don't be caught bouncing a check because you are still using your old routine.

Six tips for coping with the new check-clearing rules

Beginning Oct. 28, banks will be allowed to use a new and faster process for clearing the paper checks written by their account holders. This new process stands to save the banking industry as much as $3 billion a year, or more. It's clearly a good thing for banks but this change has the potential to trip up many unwary check-writing consumers.

Banks Follow New Check Clearing Rules for the 21st Century

The most detrimental aspect of this new law to you might be the shortening of the "float" time some folks have relied on in the past. You used to be able to write a check to your kid's trombone teacher on Wednesday without worrying about whether you had enough in your bank account to cover it as you were expecting your paycheck to go into your account on Friday. Under Check 21 the trombone teacher can deposit your check to his bank on his way home and his bank (known as the bank of first deposit) will process it electronically. The money will be charged against your account almost immediately via this electronic transfer of information.

Checks and Balances: New Rules, New Strategies for Bank Customers in the 21st Century

Changes are coming that will make it more important than ever to actively manage your checking account to avoid costly mistakes. This is not your father’s checking account.