Banks charge you for ISF because it's a great way for them to make money. Espically with banks that have the overdraft courtesy program, in which they pay your check even if it's ISF, and then slap you with the hefty fund any way. They act like they're doing you a favor, when in reality they are charging big bucks for a short term loan. It does't matter how small the amount is either. I was once under by 2 pennies. The bank paid the check and then charged me the $30 ISF. Bastards. Question No. 3 from christy:It's the best way for them to make money, But you shouldn't be writing out cheques your ass can't cash, As for the Overdraft thing - I wasn't aware of that.. Interesting.
Why do banks charge a fee on 'insufficient funds' when they know there is not enough?
There is still the process to cash the cheque. If you get Paid, and have a Cheque Withdrawal from the same day, The bank could hold it up to 78 Hours to see if any funds get deposited into your account. They don't just try once, and dishounour the cheque. But you have to think, someone is doing all this work, and the banks also pay other agency's to organize cheuqes for them (More so by Third Party Chqs, not deposted into the ATM or at a Teller Window).
