Banks Delaying Funds

**JanieD** · 05-20-2010, 03:54 PM

I received "notice" on a recent (March?) bank statement that
funds deposited in person (not direct deposit) would NOT be available until the next business day. Also, gave information on the order items (debits) would clear. I see this as a way for the bank to protect itself since Check 21 (remember that?) has debits/checks clearing one's account much quicker.

I read this information, but didn't see it as an issue. However, others around me are "upset" by this new "rule". Are you having issues with the bank not making funds you deposit available immediately?

**Greebo** · 05-20-2010, 04:03 PM

I don't mind them holding it for a few days, but I got freaking irate today when our new bank, a small local bank we were really looking forward to working with, offered no justification for holding a check deposited on the 8th for 10 days so far.

I mean, I should have known - they gave me the written material - but TEN DAYS? On a PAYCHECK? When there's an angry customer on the line, being not just unhelpful but rude is a bad idea.

Our business will be changing banks again.

**frugalwarrior2** · 05-20-2010, 04:06 PM

Sorry credit unions only here. And no. I dont even have to fillout a slip for deposit or w/d. Love It.

**TigerGirl1226** · 05-20-2010, 04:06 PM

In our experiences with our credit union and other service centers, payroll checks are immediately deposited. Occasionally, something has taken a day to go though like an insurance settlement and check from when we did our refi, but everything else has been immediate.

**mek42** · 05-20-2010, 04:20 PM

I can accept a bank wanting to wait until a check clears, but a delay for cash? In today's world, I expect that to be available immediately at the very least, if not to post immediately. The bank has the cash, unless they have seperate holding boxes for the cash that each person deposits throughout the day to check for counterfeit bills after hours, there's no valid reason (in my opinion) for any holding period with cash.

In my more cynical moments I think that the banks hold on to these archaic delays solely in order to assess fees against customers who don't understand the rules. Bank accounting is done electronically these days which happens instantly. It's not like there is some night auditor balancing the bank books after hours every night like there may have been in the past.

**JoJoBean8** · 05-20-2010, 04:35 PM

Well we just switched to a credit union and I was happy about it until I deposited a check. I deposited 5/16 and it won't clear until 5/28 I think that is a bit much. I could see a few business days but almost 2 weeks. The check wasn't even $100!

**StanleyJohnson** · 05-20-2010, 04:56 PM

When my wife deposits her check in to our joint account, the bank has to sit on it for a day or two before the funds are available.

It's funny how quickly they debit your account once someone cashes your check. The float is gone.

**JanieD** · 05-20-2010, 05:15 PM

Originally Posted by mek42

Bank accounting is done electronically these days which happens instantly. It's not like there is some night auditor balancing the bank books after hours every night like there may have been in the past.

Not sure how bank processing works now, but just a few years ago the teller work had to be processed after the bank accepted the paperwork (checks, deposit tickets, cash ins & out). Sure it was electronic, but only hit the account once it was processed not when the teller accepted it (deposit or whatever). Perhaps things have changed, but I pretty sure banks aren't running live in my area.

When I said funds, I meant checks. I haven't even thought about cash deposits. Those complaining are depositing checks drawn on another bank & wanting fund available immediately. I think the next business day is reasonable. I would have a problem with 5 days or longer. Banks are required to give written notice of the hold & date funds will be available when you make the deposit, right?

**Kitten20** · 05-20-2010, 05:28 PM

When I deposit a check, my bank gives me a maximum of $100 immediately in my account, the rest, if over $100, takes a business day to clear. My paychecks are directly deposited on the same day, at the same time, bi-weekly. I haven't had a problem... so far. I hope this doesn't change!

**MomToTwoBoys** · 05-20-2010, 06:57 PM

We have a CashBack option on our accounts. It's a $500 limit that we're allowed to take out so that the bank isn't holding our check hostage until it clears.

I'd be irate if my bank held my check for 10 days.

**frugalfranny** · 05-21-2010, 12:36 AM

Originally Posted by JanieD

I I see this as a way for the bank to protect itself since Check 21 (remember that?) has debits/checks clearing one's account much quicker.

Yep--I remember----"new federal law (called Check 21) helps banks, savings and loans, and credit unions to process the checks you write faster, but it doesn’t require banks to shorten those inconvenient check holds. Banks don’t even have to count weekends toward the number of days a check is held, even though they clear checks on the weekends."

I read this information, but didn't see it as an issue. However, others around me are "upset" by this new "rule". Are you having issues with the bank not making funds you deposit available immediately?

What I am really having an issue with now, which seems to have gotten worse with new laws, is the variance in all the rules of the banking industry. It is a maze to figure it all out, if you want to change banks. And if you don't ask 'the right question' they don't offer up the info.........regarding fees.

**mombottoo** · 05-21-2010, 11:11 AM

If I deposit my money into my account before the cut off time I expect it to put into my account & available to me that same day. If I put a large, out of state check into my account I expect to have those funds within 3 days. If I use the ATM to make a deposit & they don't pick the funds up until 6p.m. I expect it to be credited to my account that same day.

In my opinion in this day & age of electronic everything there is no reason funds should not be available almost immediately.

**McD** · 05-21-2010, 01:42 PM

Originally Posted by mombottoo

If I use the ATM to make a deposit & they don't pick the funds up until 6p.m. I expect it to be credited to my account that same day. In my opinion in this day & age of electronic everything there is no reason funds should not be available almost immediately.

There is a reason most banks place holds on ATM deposits, even if made before cut-off. A lot of crapfaces abuse the ATM deposits. People intentionally deposit empty envelopes, fraudulent checks, closed acct checks, etc. then turn around and make withdrawals. A lot of people use ATM deposits to check-kite.

Normal, law-abiding people have to suffer the consequences because criminals have figured out how to work the system to their advantage.

**Greebo** · 05-21-2010, 01:47 PM

Originally Posted by MrsMcDowell

There is a reason most banks place holds on ATM deposits, even if made before cut-off. A lot of crapfaces abuse the ATM deposits. People intentionally deposit empty envelopes, fraudulent checks, closed acct checks, etc. then turn around and make withdrawals. A lot of people use ATM deposits to check-kite.

Normal, law-abiding people have to suffer the consequences because criminals have figured out how to work the system to their advantage.

You know banking better than anyone else here, I think.

Is there any valid *technical* reason for a bank, on a fairly new account, to hold a paycheck deposit made *at* the teller window, drawn on a local bank, issued by ADP (major payroll processor) for a full 10 days, other than simple, "Cause we can" reasons?

Cause that was the attitude displayed to me by our new bank thats about to be our old bank yesterday. The woman on the phone with me was flat out uninterested and her only response was, "You were told!". Not like the lady who opened our account spelled out the holds - probably was in the bundle of pages and pages of fine print she handed to us, sure.

Well yeah, I should have checked - granted - but you know when you've got an irritated customer on the phone you don't retain their business by being all, "Well you should have just known". Hell when I effed up w/ BoA at least they were sympathetic.

**ktsmama** · 05-21-2010, 03:31 PM

Originally Posted by Greebo

You know banking better than anyone else here, I think.

Is there any valid *technical* reason for a bank, on a fairly new account, to hold a paycheck deposit made *at* the teller window, drawn on a local bank, issued by ADP (major payroll processor) for a full 10 days, other than simple, "Cause we can" reasons?

Cause that was the attitude displayed to me by our new bank thats about to be our old bank yesterday. The woman on the phone with me was flat out uninterested and her only response was, "You were told!". Not like the lady who opened our account spelled out the holds - probably was in the bundle of pages and pages of fine print she handed to us, sure.

Well yeah, I should have checked - granted - but you know when you've got an irritated customer on the phone you don't retain their business by being all, "Well you should have just known". Hell when I effed up w/ BoA at least they were sympathetic.

As a former bank teller, in order to hold your money for that long you would have had to sign a "Hold Form" (also called a Funds Availability Form) stating that you knew they were going to hold your money for this amount of time. Even if you do sign this from the normal hold time is 2 days for local checks and 5-7 days for non-local checks. They can also hold your funds if the account is still considered new or if you do not have an average balance of enough to cover the check being deposited. Even then, you would have had to sign the hold form.

You can look up Reg CC and find out the exact info online.