Balancing your Chequebook

The best way to avoid fees and penalties on your chequing account is by making sure that you correctly balance it each month. A balanced account means simply that the tally of deposits and purchases you've made matches up with your monthly statement. It sounds challenging, but it's really easy.

Computer Assistance

An even easier way to balance your chequing account is to use financial management software, such as Quicken. You can record your purchases into the program as you make them. Then, when your bank statement arrives, you can run a program that will walk you through the process of balancing your account. All you have to do is click your mouse. The computer does the math for you.

Bounced cheques

Everybody makes mistakes from time to time. When you make mistakes on your chequing account register it can result in overdrafts, also known as bounced cheques. This is when you write a cheque for which you lack the money in your account to cover.

Overdrafts are very costly. Banks usually charge $25 to $35 for each one. It's not unusual for someone to miscalculate and bounce a number of cheques in a row. When that happens, the fees can really add up.

Fortunately, there are some remedies when this happens.

©2000-2021 Visa. All Rights Reserved.