How do I set up a multiply account?

How do I set aside money in my account for the uncashed cheques that I have given to others?

  • The thing is, i have issued a cheque for 1K Rs for a charity organisation, they did not cash the cheque for over a month and during which i was careful to maintain the account balance more than 1K, unfortunately when my account balance was something like 1900 rs i have withdrawn 900 from an ATM, This ATM transaction had transaction charges and murphy's law kicked in and even before i could add some money to my account (meanwhile i have forgotten whether i have written the cheque for 1000 or 500) and the charity organisation could not cash in my cheque because my account balance was 993 Rs, Just 7 Rs short of the money that i wanted to donate. For this  my bank has charged me penalty and i think if this kind of situation repeats, its pretty bad for me. So my question is how do i freeze some amount of money immediately when i issue any cheque. i know i can donate through other means but i want someone to explain how do i avoid this kind of things when using cheques. oh! by the way my account was personal savings account so no overdraft facility is available.

  • Answer:

    There is a very simple solution here.  Simply keep a checkbook and record all of your deposits and withdrawals.  Do that, and you never have to worry about this problem again. http://www.jofijoseph.net/ http://www.jofijoseph.net/Links http://jofijoseph.weebly.com/ http://about.me/jofijoseph http://www.facebook.com/jofijoseph8

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Other answers

Budget your money better or give donations in cash. There's no way to put that money aside. It's up to you to make sure you don't spend it.

Andrea Murad

Dear Ratnakar, answer is very simple. You need to keep another SB account. Please park the amount you want to write in your cheque. Now write the cheque and issue the cheque. Do not use this account for any other purpose. Thanks Ashal

Ashal Jauhari

Your question is not the right approach to solving your problem.  I agree with all the recommendations about keeping an up-to-date check register.  This is basic and mandatory. I saw no mention of "balancing your checkbook." So, let me add that.  This is the process of reconciling your checkbook register with the reality presented by your bank statement. Did you make a mistake and neglect to enter a check in your register?  Did a check recipient fail to cash/deposit the check? Did a thief steal a check from you, or change the value of a check to take your money? Did a deposit mistakenly go to somebody else? Proper reconciliation ensures that your reality, your checkbook balance in your register, lines up properly with real reality, the checking account balance from your bank.  If these realities don't match then you can fix the register or address any issues with your bank. In the U.S. there are some other arrangements you can make with your bank that can help eliminate "overdrafts" despite your inevitable mistakes:  1) link up your checking and savings accounts so that money will be swept from savings into checking to cover an overdraft that might occur. 2) Arrange an "Overdraft Line-of-Credit," a credit vehicle that creates an immediate loan to cover an overdraft up to a pre-determined credit limit. Check to see whether these arrangements are available in your locality. A word of warning:  be wary of agreements to pay money from your checking account periodically in the future. Some personal examples: One cloud-based system vendor takes money from my account monthly. Another vendor takes money out annually.  Its tricky to track these future obligations in a paper check register. They're no different than monthly rent although when you get a bunch of them it gets complicated. Computerized check-registers or book-keeping systems are better for this. If this interests you, check out some of the free personal finance applications available on-the-web. Whatever you do for financial records: Keep it simple. Keep it easy. Keep it carefully. Keep it consistently. Keep it right.

Ken Portnoy

With your checks, you also received a register.  use it. Record every check when you write it, and deduct that from your running balance. Voila, you now know how much money you actually have left.

Alan MacNeill

There is a simpler solution. Always keep a record of your current balance, deposits and the check amounts on the counterfoil.

Ijaz Khan

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