Ten tips

By LAURA T. COFFEY

© St. Petersburg Times, published February 4, 2001

Checks aren't made of rubber, but they can bounce

If you've bounced a check, you probably remember how much it smarted when your bank charged you a $25 fee and the store slapped you with a fee of its own. But the penalty for bouncing checks can be more severe. You could lose your checking account and be snubbed by other banks. Consider these tips:

1. Remember the golden rule. Only write checks for money you have in your account. Of course, this requires you to monitor how much money is In your account.

2. Balance your checkbook often. Don't forget to keep track of all your debit and ATM transactions, as well as any automatic withdrawals being taken from your account. In addition, record all service charges and other banking fees.

3. Review your bank statements. Yes, this means you have to open them when they arrive in the mail each month. By spending a few minutes comparing your statement and the entries in your check register, you'll catch any discrepancies right away and avoid potentially costly errors.

4. Check up on checking. You can obtain the most current account information by calling your bank or viewing your balance on the Internet or at an ATM machine. Make sure you're clear about any fees your bank may charge for these services.

5. Beware of time delays. It can take two to five days for the money to become available after you deposit a check in your account. Be certain that the funds are ready and waiting before you write a check.

6. Opt for overdraft protection. Such protection will transfer money from your savings account, credit card account or line of credit to your checking account if you inadvertently write a bad check. Recognize that your bank may charge you $5 to $25 to transfer the funds.

7. Use direct deposit. By having your paycheck or federal payments sent straight to your account electronically, you'll avoid unwanted delays and your bank likely will waive your checking account fees.

8. Be judicious with joint accounts. Joint accounts can be a nightmare to manage. Appoint one person to act as the account manager, and agree upon a system for keeping all receipts in one place.

9. When possible, spend cash. You'll have an easier time balancing your account if you have fewer transactions to monitor. Try to pay for run-of-the-mill daily expenses, such as lunch and gasoline, with cash.

10. Avoid post-dating checks. Post-dating checks can be dangerous because you have to trust the other party to wait to cash the check. You're the one who will be held accountable if the check is cashed early. -- Compiled by LAURA T. COFFEY.

Sources: Aboutchecking.com (http://www.aboutchecking.com); Myvesta.org (http://www.myvesta.org, 800-680-3328); and Bankrate.com (http://www.bankrate.com).

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