Here's What Happened When My Checking Account Balance Accidentally Dipped Below $0

Years back, I opened a checking and savings account at a local bank because I wanted the benefits of having a physical branch nearby. But there came a point when I stopped using that checking account because I didn't find it convenient. I preferred to use a different online checking account that was linked to a savings account with a much higher APY than what my physical bank offered.

I never actually went out and closed my checking account at my local brick-and-mortar bank. Instead, I made a point to maintain the required $100 minimum balance just to have it. I also kept a few thousand dollars in that bank's savings account so I'd have the option to withdraw cash in an emergency.

But right before I started phasing out that checking account, I wrote a check to a contractor that exceeded $100. That contractor then sat on the check for months before cashing it.

As such, I wound up having an overdrawn checking account. But thankfully, I was able to escape that situation without negative financial consequences.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of June 27, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of June 27, 2024	Min. to earn $1
Citizens Access® Savings APY 4.50% Min. to earn $0.01 Open Account for Citizens Access® Savings Member FDIC.	APY 4.50%	Min. to earn $0.01

When a linked savings account and a visit to your bank bail you out

When I saw a fee in my checking account for overdrawing it, I was confused at first. I decided to stop by my bank to talk to someone in person about what had happened.

When I realized that a months-old cashed check was the cause of my account getting overdrawn, I was mad at the contractor for sitting on that check for such a long time. But then I got mad at myself for forgetting about it and winding up in a pickle.

However, going into my bank to talk things out was the right move. I explained what had happened, and because it was a one-time fumble, the bank agreed to waive the fee. Also, I had more than enough money in my savings account at that bank to cover the check, so I was able to transfer funds over on the spot and take care of everything.

Keep tabs on the checks you write

It's pretty rare for me to write checks these days. Most of the time, I send checks electronically from my online checking account, so the money is debited from my account immediately.

In this situation, I had expected to pay my contractor with a credit card, only they offered me a discount for paying by check that I wanted to snag. I think because I wasn't expecting to write a check, I simply forgot about it and never noticed that the funds hadn't come out of my account.

Because I've now stopped using that old checking account entirely, this sort of thing isn't likely to happen to me again. But if you still write physical checks, make a point to maintain a record of them. That way, you won't risk running into a situation like this.

Also, if you do wind up in a situation where you're facing a fee for a one-off banking mistake, call your bank to talk things through. Or, if you use a brick-and-mortar bank, it may be worth a conversation in person at a branch. In my case, all it took was a polite conversation and a smile to get my bank to be completely accommodating.