What is the rule for a checking account that a bank associate tried to explain to me about presenting the largest item first? This has caused me a couple of overdrafts. Does this apply to a deposit also, if this is the case?
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There is no law that requires any particular order of check posting. In fact, state laws specifically allow any order of posting and federal law is silent. Posting largest first can result in more overdraft checks and fees than posting smallest first.
The FDIC recently published a study showing that a large number of banks post largest checks first, with other banks posting smallest first, others posting in check number order among checks posting on a given day, and yet others post as checks are received for payment. Largest first posting has generated a large number of consumer complaints to bank regulators, and it is a matter that regulators are looking at carefully, but for now there are no laws or regulations that prescribe or proscribe any of the various posting order methods in use.
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There is no law that requires any particular order of check posting. In fact, state laws specifically allow any order of posting and federal law is silent. Posting largest first can result in more overdraft 