Insufficient funds

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Insufficient Funds

A situation in which one does not have enough deposited in a bank account to cover all checks and/or electronic withdrawals. For example, if Bob writes Joe a check for $200, but there is only $175 in Bob's account, Bob has insufficient funds in his bank account and the bank likely will refuse to transfer the funds to Joe's account. However, some banks make requested transfers with insufficient funds but assess an overdraft fee on the account holder. This is especially true with electronic transactions. See also: Bounce.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Insufficient funds.

If you don't have enough money available in your checking account to cover the checks you've written or electronic debits you've authorized, you have insufficient funds (ISF) or nonsufficient funds (NSF).

A check written against insufficient funds is informally called a returned check, a bounced check, or a bad check. If you write one, your account is considered overdrawn.

Unless you have overdraft protection, which is a line of credit linked to your checking account, your bank will charge you an NSF fee, usually $20 to $35 per check.

The check or an electronic copy is returned unpaid to the person who deposited it. The payee's bank may also charge a fee for depositing a check written against insufficient funds.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
In the area of industry in the period of 2005-2009 in comparison to the period of 20012005, insufficient funds and other not categorized barriers became a more serious barrier of development.
A state court of appeals recently considered a vendor's fraud claim against a corporate bookkeeper for signing checks when there were insufficient funds. In that case, the bookkeeper signed two checks for payment to a vendor that later bounced.
A check drawn on an account with insufficient funds may or may not be honored by the paying bank.
Such was the dire financial situation of the company, when the administrators were called in, employee salaries for August 2013 will not be paid due to insufficient funds.
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Under a new charge regime that is to come into effect in March, the bank's Cash Card bank accounts will be charged up to GBP24 a day if they have insufficient funds. The Cash Card account is designed for low-income groups.
Interior Minister Tsvetan Tsvetanov explained his request with the insufficient funds to meet the heating costs of the temporary accommodation
RAWALPINDI, May 23, 2011 (Frontier Star): The five ambulances of three Allied hospitals situated in Rawalpindi have become out of order and hampering the shifting of patients while the Administration has insufficient funds to repair these ambulances.
An attempt was then made to buy pounds 180 worth of poker chips but the transaction did not proceed because of insufficient funds in his account.
He added: "The Scottish government claim they've provided sufficient funds for councils to maintain teacher numbers, while counci ls say they have insufficient funds for that."
The sentence was for signing a cheque that had bounced due to insufficient funds. His bail was also cancelled.

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