This is an excellent and often overlooked question when managing your finances! Many people assume writing checks is a free and unlimited service once they have a checking account, but that's not always the case. With Chase Bank, like many financial institutions, there are specific fees associated with certain check-related activities, particularly when it comes to insufficient funds.
Let's dive into a comprehensive guide to understand how many checks you can write before potentially incurring extra fees at Chase Bank.
Your Guide to Avoiding Check-Related Fees at Chase Bank
Are you someone who still prefers the tangible security of a check for certain payments? Or perhaps you're just starting to manage your finances and want to understand all the potential costs involved with your Chase checking account. Whatever your reason, you've come to the right place!
The good news is that Chase Bank generally doesn't charge you a fee simply for writing a certain number of checks from your checking account. There isn't a hard limit like "you can only write 10 checks per month, and then we charge you $1 for each additional one."
However, the fees kick in when checks are involved in situations where your account doesn't have sufficient funds. This is where you need to be extremely vigilant.
Step 1: Understand the Core Principle: Insufficient Funds and Returned Items
Before we go any further, let's clarify the most crucial point: the primary fees related to checks at Chase Bank stem from insufficient funds (NSF) and returned items.
Insufficient Funds (NSF) Fee: This occurs when you write a check for an amount that is more than the balance available in your checking account. If Chase pays this check (which they might do through an overdraft service), you'll be charged an NSF fee.
Returned Item Fee: If Chase doesn't pay the check because you don't have enough funds, the check "bounces" or is "returned unpaid." In this scenario, you'll also incur a fee for the returned item.
Engage with this thought: Have you ever had a check bounce, or come close to it? If so, you know the frustration (and cost!) it can bring. If not, this guide will help you keep it that way!
Step 2: Know the Specific Chase Fees Associated with Insufficient Funds
Chase Bank's fees for insufficient funds and returned items are quite clear. As of my last update, the fee structure is:
$34 for each item (check, ACH, in-person withdrawal, debit card transaction, or other electronic means) that causes your account to be overdrawn.
Maximum of 3 Insufficient Funds and Returned Item Fees per day. This means even if you write multiple checks that bounce on the same day, you won't be charged more than three times that day for these specific fees.
Important exceptions:
Chase will not charge an Insufficient Funds Fee if your ending account balance is overdrawn by $5 or less.
They also will not charge an Insufficient Funds or Returned Item Fee for any item that is $5 or less.
It's crucial to remember that these fees are per item that causes the overdraft, not per check written. If you write ten checks and they all clear without issue, there are no fees. If one check for $100 causes an overdraft, you might be charged $34. If three different checks cause three separate overdrafts on the same day, you could be charged up to $102 ($34 x 3).
Step 3: Understand Overdraft Protection and Overdraft Assist
Chase offers services to help manage overdrafts, but these also have implications for fees:
Overdraft Protection: You can link your checking account to a Chase savings account or a line of credit. If you overdraw your checking account, funds will automatically transfer from your linked account to cover the transaction, potentially avoiding an NSF fee. However, there might be a transfer fee for this service depending on the linked account type and the number of transfers.
Chase Overdraft Assist℠: This feature can help you avoid overdraft fees under certain conditions:
$0 overdraft fees if you're overdrawn by $50 or less at the end of the business day.
$0 overdraft fees if you're overdrawn by more than $50 at the end of the business day, and you bring your account balance to overdrawn by $50 or less (or positive) by the end of the next business day.
While these features offer a safety net, they shouldn't be relied upon as a primary means of managing your account. It's always best to have sufficient funds.
Step 4: Ordering Checks - A Separate Cost
While writing checks doesn't have a direct fee limit, ordering new checkbooks does come with a cost. This isn't a fee for using checks, but for obtaining them.
Cost Varies: The price for ordering checks from Chase (provided by Deluxe) varies depending on the style, security features, and quantity. Generally, you can expect to pay around $0.38 per single check and around $0.43 per duplicate check when ordering directly from Chase for a standard checking account.
Alternatives: You can often find cheaper checks from third-party printers like Walmart, Checks.com, or Costco. These can range from $0.05 to $0.24 per check. Just ensure they are reputable and your bank will accept the checks.
How to Order: You can order checks online through chase.com, via the Chase Mobile app, or at any Chase branch. Some higher-tier accounts might receive free checks, but this is not standard for most accounts like Chase Total Checking.
Step 5: Strategies to Avoid Check-Related Fees
Now that you know the potential pitfalls, here's a step-by-step guide to avoiding those pesky fees:
Sub-heading: Maintain a Healthy Balance
The most straightforward way to avoid all NSF and returned item fees is to always ensure you have enough money in your account to cover any checks you write. This seems obvious, but it's the foundation of responsible checking account management.
Pro Tip: Keep a buffer. Aim to have a little more than you think you need in your account, especially if you have variable income or expenses.
Sub-heading: Track Your Transactions Diligently
Use online banking and the Chase Mobile app religiously. Check your balance frequently.
Keep a check register. While old-fashioned, manually tracking checks as you write them (along with other debits and credits) can give you a clear, real-time picture of your available funds.
Set up account alerts. Chase allows you to set up alerts for low balances, large transactions, and more. This can give you an early warning if your balance is getting too low.
Sub-heading: Utilize Digital Payment Alternatives
For many payments, checks are no longer necessary. Consider these fee-free (or low-fee) alternatives:
Chase Online Bill Pay: Pay your bills directly from your Chase account online or through the mobile app. This is typically free and much faster than mailing a check.
Zelle®: For person-to-person payments, Zelle is a fast and free way to send and receive money directly from your Chase app, even if the other person banks elsewhere.
ACH Transfers: For recurring payments like rent or utilities, Automated Clearing House (ACH) transfers are often set up directly by the payee and are typically free for you.
Sub-heading: Understand Your Account's Overdraft Features
Familiarize yourself with Chase Overdraft Assist℠. While not a substitute for good money management, knowing how it works can help you react quickly if you find yourself in an overdrawn situation.
Consider linking a savings account for Overdraft Protection, but be mindful of any potential transfer fees if you use it frequently.
Sub-heading: Be Mindful of When Funds Become Available
When you deposit a check, the full amount might not be immediately available. Chase has a funds availability policy. If you write a check against funds that haven't fully cleared, it could lead to an overdraft. Always verify your available balance.
By following these steps, you can confidently write checks from your Chase account without the fear of unexpected fees, as long as your account remains adequately funded.
10 Related FAQ Questions
Here are 10 frequently asked questions related to checks and fees at Chase Bank, with quick answers:
How to avoid monthly service fees on my Chase checking account?
You can often avoid the monthly service fee for Chase Total Checking by having electronic deposits totaling $500 or more, or maintaining a daily balance of $1,500 or more in the account, or an average beginning day balance of $5,000 or more in qualifying linked accounts. Specific requirements vary by account type.
How to order new checks for my Chase account?
You can order new checks by signing into your Chase online banking account, using the Chase Mobile app, or by visiting a Chase branch. You'll see the cost before you finalize your order.
How to check my available balance at Chase Bank?
You can check your available balance through the Chase Mobile app, by logging into your account on chase.com, at a Chase ATM, by calling customer service, or by visiting a Chase branch.
How to set up overdraft protection with Chase?
You can link your Chase checking account to a Chase savings account or a Chase line of credit for overdraft protection. This can typically be set up online, through the mobile app, or by speaking with a banker.
How to use Chase Overdraft Assist℠ effectively?
If you find your account is overdrawn, ensure you deposit funds to bring your balance to overdrawn by $50 or less (or positive) by the end of the next business day to avoid fees under Chase Overdraft Assist℠.
How to pay bills online with Chase without writing checks?
Enroll in Chase Online Bill Pay through your online banking account or the Chase Mobile app. You can then schedule payments to virtually any biller.
How to send money to friends and family with Chase without checks?
Use Zelle® directly within the Chase Mobile app. It allows you to send and receive money with people you know and trust, often within minutes, without any fees from Chase.
How to view images of checks I've written on my Chase account?
You can view online images of checks you've written for up to three years by signing in to your account on chase.com or the Chase Mobile app. Once a check has cleared, click on the check icon next to the check number.
How to void a check if I made a mistake?
To void a check, write "VOID" in large letters across the front of the check, ensuring you don't obscure the routing and account numbers at the bottom.
How to find the terms and conditions for my specific Chase checking account?
You can usually find the detailed Deposit Account Agreement and other terms and conditions for your specific Chase checking account on the Chase website, or by requesting a copy at a Chase branch. This document outlines all applicable fees and policies.