Check hold

Check Hold

In the United States, the number of days a bank is legally allowed to hold uncollected funds from a check deposit before crediting the funds to the depositor's account. According to the Expedited Funds Availability Act of 1987, the length of a check hold is two days for a local check and five days for a non-local check, with the first $100 being available the next business day. The length of the check hold is designed to approximate the number of days it takes for a bank to collect funds from the check writer.

Check hold.

When you deposit a check, your bank or other financial institution may delay crediting the money to your account during what's called the check hold period.

The number of days that your bank can legally hold your funds depends on the type of check you deposit and, at some banks, on the type of deposit slip you use.

Under federal law, certain deposits must be available by the next business day, including checks payable by the US Treasury or a Federal Reserve Bank, US Postal Service money orders, cashier's checks, and electronic payments.

Other deposits can be subject to a check hold of one to five business days, depending on whether the check is drawn on a local or non-local bank, and the size of the deposit. The law does require banks to make the first $100 of your deposit available on the next business day.

Your bank must inform you of its check hold policy, although you should keep in mind that banks can impose longer holds if your account has been open less than 30 days.

References in periodicals archive ?
UK-based Smiths Detection said it has won a contract to supply 10 Spanish airports, including Madrid, Barcelona and Malaga, with more than 120 high-speed X-ray scanners to check hold baggage for explosives and other threat items.
Smiths Detection has won a major contract to supply 10 Spanish airports, including Madrid, Barcelona and Malaga with more than 120 high-speed X-ray scanners to check hold baggage for explosives and other threat items.
Banks should be required to bear the responsibility for transferring a customer's automatic payments and deposits from the old account to the new account within 14 days -- Banks should provide same-day electronic fund transfers at no cost to consumers -- Check hold times should be reduced so consumers can quickly access deposits in new accounts -- Banks should be prohibited from assessing unfair fees for closing accounts -- Banks should be prohibited from reopening accounts after consumers close them -- Banks should be required to provide clear and accessible account closing procedures -- Bank regulators should examine the feasibility of portable bank account numbers to facilitate easier bank switching.
94) Representative Maloney proposed the CCAF as an amendment to the EFAA, (95) like Check 21, to reduce maximum check hold periods and to eliminate unnecessary hold period exceptions in accord with banks' new ability to learn of nonpayment more quickly.
Until the Federal Reserve issues its report to Congress in April 2007, banks should re-examine their check hold policies and if customers do not like bank policies they should take their business elsewhere.
Special bonding agents in the check hold toner more securely to avoid scraping alterations.
WIESBADEN, Germany -- Smiths Detection has won a major contract to supply 10 Spanish airports, including Madrid, Barcelona and Malaga, with more than 120 high-speed X-ray scanners to check hold baggage for explosives and other threat items.
A barcode printed on the face of the check holds negotiable details such as payee name, check amount, check number and transit and validates the check's authenticity.