How do auto bill pay work? will my check bounce

[dasherkin]

If my mortgage is due on the 15th of november, im on automatic payment. if they are withdrawing on the 15th can i deposit the money in my checking account on that day. or would it have to be sooner... i don't get my check so i can't deposit until monday... if if i deposit on the day they are withdrawing, they wont get an insufficient funds return will they??

basically is they withdrawing on the 15th? ot are they initiating on the 15th

sorry if this is in the wrong forum

[researchnerd]

I would think you'd be OK if you deposit cash same-day, but ultimately this depends on your bank's deposit policies. Just give them a call and ask the same question.

To be on the safe side, you may want to kill your auto payment and mail them a check on the 15th. Most mortgage lenders have a 10-day grace period, so you should not be considered late. Then you can re-start your auto pay arrangement if you want to.

[brokejoker]

At our bank you have to make the deposit before 1pm for it to post at midnight that night. Call your bank and ask when they post the deposits just to make sure!

[AngelinaCat]

You had best be VERY careful.

We had an automatic bill pay with our electric company. We knew when 'Hub's SS check, his paltry retirement, and when my PT job payment hit, and tried to schedule the electric company's auto-payment. Guess what? They didn't always draw the payment when we told them they could. So a couple of payments bounced, and we were forbidden to do automatic bill pay for a FULL year. So we had to make our payments via money order and certified mail. When we could not make the full payment, we had to go to the neighborhood store and fill out a form and submit a cash payment.

[Pandora]

If you deposit CASH into your bank account, you need to tell the teller you'd like to have the cash "MEMO POSTED". This means that they will credit it immediately and not wait until later in the day to do so. Technically a "Business Day" is up until 12 midnight, so tellers can legally wait until closing time to post the cash to your account, and it wont be credited until the computer system updates all deposits/withdraws for the day, many do not do so until close to midnight or midnight itself, just as brokejoker states above. 12:01 is considered the start of the "next business day".

If you deposit your paycheck vs. cashing it and depositing - if its not written on the same bank you're banking at, it can take up to 2 days to clear. The bank will give you provisional credit, however it wont apply until later. Example: if you havea direct deposit on the 15th, your account may state "Pending Deposit" and your Available Balance may reflect the pending deposit, however until you actually see the "pending" go away, its not there until the computers update. You can bounce a check and/or debit payment if you use it because its "pending only". Most banks take out all items first, then add deposits afterwards.

Call your bank and find out what their procedures are and when their computers update for the day. You dont want to end up in the red, bouncing your payments.