Can my bank not cash a money order? or hold it until it clears?

Question

Recently my bank bounced checks becuase my fund were not available, but the funds I deposited were money orders sent in a week prior. They refunded some of the fees, but not all. I think they are breaking the law.

Answer 1

Yes, they can do this. People do steal and/or forge money orders. They are allowed to wait for that to clear before allowing you access to the money.

Answer 2

Remember, you take USPS money orders to the Post Office.
Everything else you take to your bank and don't spend the money for 10-14 days (longer if they are foreign). That should prevent any bounced checks that you write.

If there is anything fishy about the MO (like I'm sending you more money, so refund the excess via Western Union), don't cash it.