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Easy Come, Easy Go?

September 22, 2009

If it isn’t one thing, it’s another.  In this case, we’re talking about the seemingly arbitrary amount of time it takes for banks to process overdraft fees and to credit accounts for deposits.  An article in the New York Times earlier this month looked at the overdraft side of things, and an article this week deals with deposits.

The article does a good job of laying out the current rules concerning deposits, and includes an explanation of  common traps that catch many consumers off guard.

“Any deposit over $5,000 is automatically suspect.  If your account has been overdrawn at least six days in the last six months, then the bank can delay any deposits to your account.  If your account is less than 30 days old, then your bank gets the extra time there, too.

The large deposit exception ensnares plenty of people, according to Gail Hillebrand, senior attorney at Consumers Union.  They include those who are paid on commission or quarterly and those earning royalties, and a large number of others moving money around from, say, a brokerage account to their checking account to pay medical or tuition bills or buy a car or house.”

Rules are in place to change and update the deposit system, but in the meantime, deposit carefully and always keep a close eye on your available balance.

(Photo: teofilo)

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