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I don't understand. There is a near-infinite number of banks and credit unions that don't charge fees or allow over drafting. Note that a bank not allowing ove
by cperciva 3y ago
I don't understand. There is a near-infinite number of banks and credit unions that don't charge fees or allow over drafting.
Note that a bank not allowing overdrafts (e.g. by returning checks NSF if the account has insufficient funds for them to clear) does not guarantee that an account will never end up with a negative balance. In particular, you might deposit a check which is later returned (as NSF, or as being fraudulent) and not have enough money in your account to cover the check at the point when it is returned -- hence Patrick's point that checking accounts require the bank to extend credit even if the only thing you ever do is deposit checks.
- jstanley 3y agoIf the only thing you ever do is deposit cheques, how can the balance go negative?
- stanleydrew 3y agoParent has already explained, but here are the steps. 1. Deposit check 2. Funds are made available to you 3. You withdraw the funds 4. The check is later marked as fraudulent and the payer bank attempts to claw back the funds, with your account balance at zero
- jstanley 3y agoIf you're withdrawing funds then it is not the case that the only thing you ever do is deposit cheques.
- e63f67dd-065b 3y agoA bank account to which money can only be added is not a very useful one.
- Brusco_RF 3y agoReminiscent of the write-only-memory[1] [1] https://repeater-builder.com/molotora/gontor/25120-bw.pdf https://repeater-builder.com/molotora/gontor/25120-bw.pdf