Wednesday, September 3, 1975
daily nebraskan
" page 1 1
Bv Liz Crumlev
You say you have free checking? think about it.
Seven Lincoln banks said in interviews mat they have
free checking.
However, cost of checks runs from $2.90 to $3.60, the
charge on returned checks ranges from $3 to $5, and the
charge for overdrafts ranged from 25 cents per $100 per
day to a set charge of $4.50 plus 35 cents a day.
National Bank of Commerce (NBC), 13th and N'Sts.,
one of the two largest banks in Lincoln and one of three
downtown banks, had some of the largest and smallest
charges of all the banks surveyed.
According to Jane Shepard, bookkeeping department,
NBC charges $5 for each returned check, the highest return
fee of the banks surveyed. -
Insufficient funds
A returned check, said Shepard, is one that comes back
from their computer nonpost, meaning there are
insufficient funds in the account to cover the check. It is
then returned tov the business or person for which it
originally was written.
The business waits a short time and then sends the same
check through the bank again, to see if sufficient funds had
been deposited.
"The main idea for charges is a deterrant," Shepard said.
"The whole idea of checking is a' free Service the bank
offers to the customer."
Gateway Bank, with a branch office in the Nebraska
Union, could not release any information. Hie president of
the bank, Carl Dickinson, is on vacation and is the only one
authorized to give out information needed.
$3 charge
First National Bank (13th and M Sts.) charges $3 for
each returned check (the smallest amount charged by any
bank surveyed), said Marvin Walker, new accounts officer.
The next smallest amount charged for returned checks is
at Cornhusker Bank, 2834 N. 14th, which charges $4 for
each returned check, Marilyn Horky, assistant cashier, said.
Three banks charged $4.50 for each returned
check-Citibank, (14th and M Sts), Havelock Bank (6145
Havelock), and Citizens State Bank (2500 N. 48th).
Lincoln Bank South, (4100 S. 27th St.), along with NBC
charges $5.
According to Richard Harner, vice president and cashier
at Havelock Bank, returned checks are expensive to process.
"We probably have one person who totally does return
checks. We try to make the charge i deterrent," he said.
One charge
Jeff Munford, supervisor of customer serivce and
bookkeeping at Citizens State Bank, said they charge only
for the first time check comes through, adding that the
original charge is based on the discretion of the bank's
officials. ;
Charges also are made by most banks for overdrafts.
According to Shepard of NBC, an overdraft is a process
by which the bank pays for a check for which there are
insufficient funds. It is a small-term loan, she said, and the
person is notified by NBC immediately by mail.
The decision of whether to pay the check and create the
overdraft or to send the check back is made at the
discretion of their bookkeeping department, Shepard said.
Usually, she said, the bank will not overdraw on new
accounts. The account usually ' must remain in good
standing for about a year before overdrafts will be
permitted. -
Students considered "
"We try to be more fair with students," Shepard said.
This policy of discretion is practiced by all the banks
surveyed that allow overdrafts.
The lowest charge for overdrafts is that of Citizen State
Bank which charges nothing. :'.
ft
. ; , , l ..
According to Munford, it's left up to officer discretion.
Each officer, said Munford, reviews a list of insufficient
fund checks, which he says averages 200 a day. Any one of
them can allow the overdraft to be made.
"If the check is close to the amount in their account,
then we'll probably overdraw," he said.
"However," he said, "we don't let them go over 10 days.
If they aren't paid by then, we either close the account, try
to collect ourselves, or turn it over to a collection agency."
Lincoln Bank South does not allow any overdrafts,
according to Joan Earnhart, new accounts.
' Savings withdrawal
"If they have a savings account, ve automatically
withdraw from their savings an amount just large enough to
cover the ckeck and deposit it into their checking account
at no charge," she said.
According to Earnhart, this is an agreement that can be
made at the time the accounts are opened.
First National charges $3 for all overdrafts. The decision
of whether to allow tin overdraft is based on the discretion
of the bookkeeping department, Walker said.
"We base it on their past record. Habitual bad
check-writers we don't allow overdrafts on," he said.
NBC and Cornhusker Bank each charge $4 for each
overdraft.
Cornhusker Bank usually will wait six months on a new
account before allowing any overdrafts. However, Horky
said, sometimes, they will overdraw a few dollars for new
customers.
35 cents a day
Citibank, charges $4.50 for overdrafts plus 35 cents for
each day the overdraft is not paid, said Don Taylor, cashier.
There is usually no charge for an overdraft of less than $5
the first time.
"The first time we usually consider it an error in your
checkbook," he said.
"However because of the number of bad checks this
year, we are suspect on darn near all new accounts. We
probably wouldn't overdraw over $5 for new accounts.
Havelock Bank, according to Harner, charges a set 25
cents for every $100 overdraft payment for every day it is
not paid.
However, like Citibank, Havelock charges nothing for
overdrafts under $5. According to Harner, it is done
automatically by computer for everybody.
The cost of checks also varies among different banks.
The lowest amount charged for 200 checks is $2.90 at NBC
for personalized safety paper checks (plain, solid colors),
said Loren Dotson, manager of . the personal banker
department.
Nature checks
At NBC the personalized nature line checks (Serenity,
etc.) cost $3.12, Dotson said.
According to Harner, the cost of the same checks at
Havelock Bank are $3 and $3.25.
The costs of the checks at Citizens State Bank, according
to Mumford are $3 and $3.50.
. At Lincoln Bank South, according to Earnhart, the
checks cost $3.25 and $3.50.
(Continued on pg. 12)
" IS? J Jl tfiattte.S
w Closes Bepimmw
If you live in an apartment, sorority or fraternity house, order your own phone now so your name
will appear in the directory this fall. (Dorm students already have tiieif own telephone and will bo listed
in the Student Directory.) To order, come to our business office at 1440 M Street.
Remember Monday, the 8th of September. Ringy-Dingy Day.
Comptnui -
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