Question

What is a non-sufficient fund (NSF) fee and when must you pay it?

Answer 1

Non-sufficient funds is the term used when the holder of a checking account is overdrawn — meaning there is not enough money in the account to pay the check written against it. The bank returns the “bounced” check to the accountholder and charges a returned-check charge, or a non-sufficient funds (NSF) fee.

Answer 2

This occurs when a checking account is overdrawn and doesn't have enough money in it to cover debts. A fee is charged and more funds must be added to the account.