What is a Non-Sufficient Funds (Nsf)?

A bank term meaning there was not enough money in an account to cover a payment or cheque, causing it to bounce. NSF events can trigger fees and raise lender concern about cash flow control.

For example, a $1,200 loan payment is returned NSF because the account only had $900. The bank charges an NSF fee and the lender flags it as a missed payment.

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