What does NSF mean in banking?

The acronym NSF also references the fee a customer is charged for presenting a check or payment that cannot be covered by the balance in the account. Consumers can avoid NSF fees by opting for overdraft protection through their banks.

What is a nonsufficient funds (NSF) fee?

Banks charge a lot of fees -- monthly service fees, ATM fees, excessive transaction fees and many more. While all those costs can be annoying, one of the most frustrating fees that can land on your account statement is a nonsufficient funds, or NSF, fee. NSF fees are often lumped in with overdraft fees, but they’re not the same.

What are some examples of NSF fees?

Some common examples that result in NSF fees include bounced checks or declined bill payments. While many financial institutions have eliminated NSF fees, some continue to charge these fees. When a bank says there are non-sufficient funds, it means there isn't enough money in your account to cover your transaction.