heads up folks... don't waste money on "bank checks" or money orders

[MissMillie]

apparently the person you are sending them to has to have enough in their account to cover the check.

My mother was sending me some money for something, and I told her a bank check would be better because I could just cash it and work with the cash.

I was under the impression that my bank would cash a bank check no matter what my bank balance is. That is NOT true.

So a bank check is really no better than a personal check. They both have to clear. So if you have to wait for something to clear, it may as well be the personal check. No point in spending a dollar or more for a bank check.

That's quite a racket the banks have going there....

[Beer Snob-50]

1. it used to be, a bank check was just as good as cash!

maybe there are some who have figured out how to scam using the bank checks.

[MissMillie]

2. apparently it is still possible to put a "stop check" on the bank checks

even on money orders.

[Beer Snob-50]

4. yes, but back in my banking days

you needed a real good reason to stop pay it, like it was lost or stolen and you had to sign a affadavit saying so.

[NewJeffCT]

9. yes - I had this come up about a year ago for me

when we sold our house - we got a cashier's check from our bank for the seller's bank, and we were told that we'd have to wait for it to clear because they've had a lot of issues with fraudulent money orders & cashier's checks. The only way to get the money immediately was to have it wired directly from one bank to the other - of course, then you have the pay the wire transfer fee.

[supernova]

3. Tell her to take it to a branch of your bank

near her.

That's what I did with a cashier's check I got from a lumber company. Got my money that day and if there was a problem, it was between the bank and the issuer. The payee, me, was out of it.

[MissMillie]

5. we live an hour apart

otherwise I would have just gone w/ her to the bank when she took out the cash to get the bank check... she could have given me cash.

[philosophie_en_rose]

6. I suggest giving your mother a deposit slip.

She can just deposit the money directly into your bank account and cut out the middle person. My parents used to do this, when I was in college.

[MissMillie]

7. she and I do not live near each other

she mailed me a bank check.

[philosophie_en_rose]

15. She wouldn't have to.

As long as she lives near a branch of your bank, she can make a deposit. Or she can e-transfer the money from her account into yours.

[MissMillie]

19. we use small banks

hers is a local credit union and I have no idea if there's a branch of my bank anywhere near her.

[Parche]

8. patriot act

And get this, you used to be able to get a cashiers check with cash of course
from a bank you didnt 'belong' to......i did that all the time since my credit
union was a long way to get to sometimes......not anymore, because of the
^%$&#^$(&^T(*&^ patriot act, you cant get a cashiers check at a bank you dont
have an account with.......the dumbest law out there.....:hi:

[trof]

10. 'Cashier's checks' used to be as good as cash. No more.

They put a 5 'working day' hold on my checks from Charles Schwab.
jeez
Charles Schwab?

[tilsammans]

16. Really?

I've been considering starting a checking account with Chas. Schwab. Any other caveats?

Thanks! :hi:

[trof]

22. Not Schwab's problem.

It's the bank that's the problem.
You'd think that funds in a check from a major broker would be immediately available in your account.
But no.
It's called 'float' and it's one way your bank makes money.
Basically an interest free loan for them for as many days as they put the hold on.

I went with Schwab after Fidelity totally screwed up my account and it took 3 months to get it straightened out. I finally had to call in the SEC.

[tilsammans]

24. Ah!

Thanks! I thought you were referring to a Schwab checking account. So far, I've been a tad unimpressed with Schwab, where I have my IRA.

Sorry about your bad experience with Fidelity. Scary! And I just started a new 401k with them. Eek!
:scared:

[FloridaJudy]

11. Considering that these days

Whenever I write a check, the establishment I'm writing it to can clear it with my bank and deduct it from my balance in seconds that really is a racket. However is it that funds I deposit take days to clear, but the money in my account is gone as soon as the ink on my check is dry?

Someone is making a profit on this.

[DS1]

12. Never saw anything like this from Western Union

but that was 6 or 7 years ago

[MissMillie]

17. true enough

but the last time I wired money Western Union, it cost me $12.50 to do it.

[NMDemDist2]

13. US Postal Service Money orders, cheap and cash at any Post Office n/t

[MissMillie]

18. Nope

I asked at the bank. they have to "clear"

[northzax]

23. take a postal money order to the post office

they will cash it if you have Id.

And may I say, you need a new bank. My credit union clears $5000 instantly, even from an ATM that isn't theirs, anything above that is a 48 hold (after which they credit the interest earned)

[CGowen]

14. Banks are in real deep doo doo and raised even ATM fees

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x33820

[meegbear]

20. Is it Bank of America?

Sounds like them.

[MissMillie]

21. no

much smaller bank