But with banking more complicated than ever, keeping track of checking account balances can be extremely difficult for busy people. But you can slap down those bouncing check charges with a little inside information and some clever account management.
Some metropolitan areas are even steeper, the study finds.
Nonsufficient funds fees reap giant profits for banks, according to a June 1998 report by the Consumer Federation of America . One method some banks use to maximize those fees is to clear the biggest checks first rather than process them in the order they are received. This means smaller subsequent checks bounce, allowing banks to charge you more than once. Pros and cons of punishment Jim Mataya, a regulatory specialist in the government relations division of America's Community Bankers , a Washington, D.C., trade group, says bounced check fees are high because they are intended to punish. Like a parking ticket, it's punitive.