Chances are that if you’ve ever had a checking account, you’ve seen the phrase “cash debit from unsettled activity” on your statement at least once. But what does it mean?
In short, it means that there was an item processed through your account that has not yet cleared. This can happen for a variety of reasons, but most often it is because the item was processed on a weekend or holiday, or because the check is from a bank located in a different city.
How to Avoid Unsettled Activity Fees
The best way to avoid fees associated with cash debit from unsettled activity is to be aware of when your banks processing days are and to plan accordingly. For example, if you know that your bank processes checks on Mondays, Tuesdays, and Thursdays, then you should not write any checks on Wednesday or Friday, as they will not clear until the following Monday. Similarly, if you know that your bank is closed on weekends and holidays, then you should not write any checks on those days.
Another way to avoid fees associated with cash debit from unsettled activity is to use direct deposit for your paycheck instead of having a paper check deposited into your account. This way, you can be sure that the money will be available as soon as possible.
All in all, avoiding cash debit from unsettled activity fees is relatively simple if you are aware of your bank’s processing days and schedule accordingly. Additionally, using direct deposit for your paycheck can help to ensure that the money is available as soon as possible. By following these tips, you can minimize the chances of being charged fees for cash debit from unsettled activity.