[cicy33]

Originally Posted by Inkstain82

When banks intentionally mess with the timing and order of deposits and withdrawals, I'd call that a problem with the bank, but it's one that wouldn't be a problem if not for the user-caused problem of living paycheck-to-paycheck.

But I've had this happen to me and others:

Have $20 in bank. Deposit $600 through a payroll check from a well-known local business. Wait four days. Go to gas station, supermarket and spend more than $20 at each.

A day or two later in the mail get a couple overdraft notices in the mail. Go to bank and request transaction logs, and it looks like this:

01/01 beginningofday Balance $20
01/01 noon Deposit $600 (not cleared) Balance still $20
01/05 noon gas station -$50 Balance $-30
01/05 12:15 grocery store -$100, balance $-130
01/05 12:30 overdraft fees, balance -$190
01/05 12:31 deposit cleared, balance $410

This would happen repeatedly (because I was naive enough to think it was a fluke the first few times). Every time, they would hold the funds on a local payroll check for as long as they possibly, legally could and hope that I'd try to spend some of it. The moment I did, they'd slap a few overdraft fees and then minutes later clear the check.

While this may be within the law and the user agreements, I'm not going to say they did "nothing wrong." That's pretty darn immoral in my world, and a good reason why many people who put themselves in bad financial circumstances learn to distrust banks.

Our bank does this. They do charges first and then do the deposits. I think that is wrong. If the deposit and charge were both there at the same time I don't see why they don't do the deposit first. I just try to make sure there is extra in the bank so that I don't have problems. We just moved and opened a new account. I have over $3700 and can't access it for 2 weeks cuz they are holding it for 9 business days. I don't mind really but geez NINE!!!! I can see five. What happened to faster check clearing? Or does that only apply to us and not businesses. All three checks I deposited were from established businesses.