An insufficient funds fee (sometimes referred to as a non-sufficient funds fee or NSF fee) can occur when a member simply does not have the available funds in their checking account to cover the entirety of the transaction they are trying to make, and as a result the credit union denies the transaction.
An uncollected funds fee can occur when there are pending credits to an account (like a personal check that has yet to clear), and a member tries to make a purchase that is larger than the member’s available balance. If the purchase amount is larger than their available funds the fee will be assessed, even if there are funds on deposit (which, when cleared would cause the account balance to exceed the purchase amount).
As the check has not cleared, the credit union cannot guarantee those funds. As a best practice, use your available funds as a guideline for writing checks and making purchases.
To avoid such fees, you can closely monitor your available balances through online and mobile banking.
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