ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Make Payments and Move Money Easily - How Checking Accounts Work

Updated on February 17, 2012

Checking

Fully understanding how writing checks and checking accounts works, will help you to be better with your money and maximize it. For instance depositing a large amount of money and wanting to access it right away may not be possible, so you need to know when it is credited to your account, etc. Knowing the full path the check takes can be helpful to people that are either learning to manage their finances fully.

If you have been given a personal check from another person, and you deposit it into your account, it is sent to the bank of the person that wrote the check. Their bank takes that amount of money written on the check, out of their account. The bank then electronically transfers that money to your bank and your banking account. If you happen to use the same bank of the person that wrote the check, its possible that you will have the money the very same day. Often this is not the case, and there will be a note of the transaction in your account, but the money may not be accessible right away. It will be credited the next business day usually.

A Neat Old Bank in Iowa
A Neat Old Bank in Iowa

When Credit is due into an account

It used to be the case that banks could make up their own rules of determining when checks had to be credited to a person's account. There was no governing over when the money had to added to your account balance. There are Federal Reserve regulations in place now that make the determination of when your money must be available. When I make my deposits into my checking account at my bank, I get an available balance total that I can use right then, and I get a total of what my balance will be once the check clears from the other person or business. You have to be aware of exactly how your bank works, because if I went out and wrote a check on that day for more than the available balance, then I could be in trouble. Many businesses can access the money from your account right away, they can tell electronically if there are enough available funds in your account to account for the writing of the check. This is true even though your check technically doesn't get to your bank that very day. Understanding this can save you some embarrassment at a store.

Your bank, if it is like most banks, can charge you a fee for writing a check against your account, for funds that haven't been collected yet. Its good to create a floating time, a lag of time between when you write a check and when your bank clears it.

When depositing a check into your account, some banks can make the money available immediately if you do business with a teller. It just depends on the bank, so ask about this. Sometimes using off site ATM's for deposits can take a little longer. Your bank can fully explain the details process the funds take to get to the point where they are available to you.

Avoid Extra Fees and Instant Money after Deposit

Your bank, if it is like most banks, can charge you a fee for writing a check against your account, for funds that haven't been collected yet. Its good to create a floating time, a lag of time between when you write a check and when your bank clears it.

When depositing a check into your account, some banks can make the money available immediately if you do business with a teller. Often the full amount you deposit won't be available right away, and there will be two amounts.  One is your balance, and one is available funds.  It just depends on the bank, so ask about this. Sometimes using off site ATM's for deposits can take a little longer. Your bank can fully explain the details process the funds take to get to the point where they are available to you.

Do you currently have a checking account that you are happy with?

See results

Comments

    0 of 8192 characters used
    Post Comment

    • oceansnsunsets profile imageAUTHOR

      Paula 

      6 years ago from The Midwest, USA

      Hell Abd Malek, I think all the things you mention there sound like great things to have in a checking account. Thank you for stopping by and leaving a comment.

    • profile image

      abd malek abd rahim 

      6 years ago

      regarding for this program must be support for newer membership to be come easy using the chances from this program for long time to created part time income thank you

    • oceansnsunsets profile imageAUTHOR

      Paula 

      7 years ago from The Midwest, USA

      Thank you Phoenix!

    • PhoenixV profile image

      PhoenixV 

      7 years ago from USA

      Great information voted up!

    • oceansnsunsets profile imageAUTHOR

      Paula 

      7 years ago from The Midwest, USA

      Hello Simone, thank you very much. Glad you stopped by and commented.

    • Simone Smith profile image

      Simone Haruko Smith 

      7 years ago from San Francisco

      This is a fabulous beginners' guide! I wish someone had sat me down to explain all of this... I feel like I learned about this in a very piecemeal way as a kid and got much more confused because of it @_@

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)