Tuesday's tips: Check clearance

Madeleine is trying to make the best of a bad situation. Laid off from her job this year, she's getting by on checks from Employment Security.

"Of course, it helps, it keeps a little bit of food on the table and it? pays the basic bills," she said.

When some of those bills were due, funds were running low. Just in the nick of time, her check from the state arrived.

"Proceeded to pay a couple of bills with my debit card, which of course is attached to my checking account," she explained.

But she didn't know her bank only made $100 available, which put her account into the red, racking up two $35 nonsufficient funds charges.

Madeline was baffled why she had an NSF.

But her check was considered a local check. Her bank makes sure the deposit is good through a Federal Reserve processing center in Seattle. Employment Security draws from another local bank and they clear from the same facility. All of the money was made available in two business days.

Non-local checks clear in different parts of the country. It takes five business days. Either way, banks must make $100 available the next business day.

"I could have had a boat load of additional overdraft charges, but I didn't," she said.

Madeleine's bank dropped the charges.

To avoid any check-clearing challenges, use direct deposit for paychecks. You can even direct deposit unemployment checks. This way, there is no check, so you don't have any waiting period and you have access to all your money.

For consumer concerns, e-mail Jesse to or call toll-free 877-51-JESSE. Follow him on Twitter at