If you think you can get away with a little float, think again. It used to be tempting to write a share draft/check without actually having the funds in your account to cover it—until now.

The Check Clearing for the 21st Century Act (Check 21) will cut the time it takes a check to clear from days to hours. So if you need to change your checking habits, do so before it’s too late.

Check 21 was signed into law on Oct. 28, 2003, and becomes effective Oct. 28, 2004. It’s designed to foster innovation and efficiency in the payments system by reducing some of the legal barriers to check truncation. Truncation means removing an original paper check from the check collection or return process, just as credit unions successfully have done for years. Supporters say it could reduce the cost of trucking and flying the paperwork cross-country by $2 billion a year.

The law eases the electronic exchange of checks by making electronic check processing voluntary and not mandatory. The law mandates that all institutions accept a substitute check (the paper copy of an electronic check file), but doesn’t mandate that all financial institutions accept electronic checks.

The bottom line: These changes should be transparent to you most of the time. If your checking habits need improvement, brush up—before the float sinks.

It’s the perfect time to sign up for Overdraft Protection.

Your APGFCU Visa® Credit Card is the best way to protect your checking account from overdraft charges and bounced checks. Just tell us to assign your account and you’ll be protected up to your available credit limit.

Don’t have an APGFCU Visa? Apply today.

Use our
Online Form
or call 410-272-4000 Option #4.

Topics include:
• Checking account fundamentals
• Smart money management
• Cash flow tips
• Using ATM/Debit cards wisely
• Reading a checking statement
• Keeping track of checks
• Checkbook reconciliation

Anytime Advisor - Checking Account Coach