BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What fee would you be charged by a bank or credit union if you write a check and do not have enough funds to cover it?
A
Insufficient funds fee
B
Stop payment fee
C
Check fee
D
Point-of-Sales fee
Explanation: 

Detailed explanation-1: -Overdraft fees are incurred when you spend more money than you have available in your bank account, and banks typically charge around $35 per instance, meaning that you can be charged multiple overdraft fees in a single day.

Detailed explanation-2: -What is an NSF fee? An NSF fee is commonly charged by banks when an account lacks the funds needed to cover a transaction, and the bank does not allow the transaction to go through. The result may be in the form of bounced checks or denied electronic bill payments.

Detailed explanation-3: -When you write a check and there’s not enough funds in your account when it’s presented, this is considered non-sufficient funds (NSF). When a check is returned due to NSF, it’s returned to the payee that deposited the check, at their bank.

Detailed explanation-4: -Some banks charge a maintenance (or monthly) fee if you go below a certain balance in your account. Banks may charge these fees to encourage deposits or certain balances. This helps banks guarantee you’ll either have a certain amount in your account or you’ll be paying a fee.

There is 1 question to complete.