Non Sufficient Funds

Summary of Non Sufficient Funds

Also Known As:  Not sufficient funds,  Bounced Cheque or Dishonoured Cheque

The term Non Sufficient Funds is used in the banking industry. Often seen as “NSF” refers to, an account’s inability to honour a demanded payment to another account due to inadequate funds available. Fees are usually associated with NSFs. “NSF Fee.” Fees may range from $5 to $50. Many Canadian banks charge $42.50

Other reasons for NSFs are, the account drawing the funds may have closed. The individual drawing the funds can issue a “Stop Payment” through the bank. (Which will incurr a fee). NSF’s can be prevented by purchasing “Overdraft Limits”. With Overdrft, the demanded payment will clear regarless of the availability, but depending on the limit of overdraft, ie: $500. The drawing account will appear as a negative balance.  Non Sufficient Funds notices can be embarrassing. If you are experiencing too many NSF, you can monitor your account balance closer, keep a higher bank balance or purchase overdraft privileges .

Visit Us On TwitterVisit Us On FacebookVisit Us On Google Plus