Non-sufficient funds is the term used when the holder of a checking account is overdrawn — meaning there is not enough money in the account to pay the check written against it. The bank returns the “bounced” check to the accountholder and charges a returned-check charge, or a non-sufficient funds (NSF) fee.

Why does insufficient funds happen?

Non-sufficient or insufficient funds occur when someone doesn't have enough money in their account to cover a transaction or payment. In most cases, if you spend more than what you have in your account, you will be charged an NSF fee from your bank. ... The most common cause for NSF is automatic withdrawals.

What it mean that not sufficient fund?

The term non-sufficient funds (NSF), or insufficient funds, refers to the status of a checking account that does not have enough money to cover transactions. NSF also describes the fee charged when a check is presented but cannot be covered by the balance in the account.