smart money strategies
Common Checking Account Practices
If you deposit money in a checking account, when is it available for use?
- It’s available immediately after you deposit it.
- It’s available 10 days after you deposit the check.
- It is available once it’s deducted from the check writer’s account.
“C” is the answer. When you deposit a check, all or part of the funds are generally placed on “hold” while it’s being processed. This usually takes a few business days. If the check writer’s account doesn’t hold enough money to cover the check, it may bounce, and you will not get the money. You may even be charged a fee unless you have overdraft protection. This may also happen if you write checks without having enough money in your account to cover them. When you use your debit or ATM card, the money is immediately withdrawn from your account.