Bank put 10 day hold on large check deposit. Why this long? (million, wire)
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It is an FCC regulation. In truth, the check clears much quicker than that, but this way a bank gets to use your money for a few days. They won't tell you that, they will tell you it is to protect them from you spending the money and then the check being returned.
If you are on good terms with the branch manager, they can sometimes (only if the issuing bank will cooperate) find out when the check has actually cleared the issuing bank and can have the hold released.
Are you sure on the FCC?
The truth is it does clear quicker than 10 days in 90%+ of the cases. We do and other financial institutions can return checks up to 30 days. I've had it happen many times in my location although it's rare that weeks after a check was deposited and cleared we got a return notice and had to back it out of the clients account. The 10 day hold time is simply protection for the bank.
If you don't like hold times use the fed fund wire transfer system
I recently had a large check deposit (over $20,000) into my checking account drawn from another bank in another state and they would not release the funds to me for 10 days. I don't understand why it takes so long this day and age to put a hold on funds for ten days when banks have such quick computerized ways to transfer funds from one bank to another.
Any knowledge of why they still do this on large deposits?
They're required to release $5000 within 5 business days.
I recently had a large check deposit (over $20,000) into my checking account drawn from another bank in another state and they would not release the funds to me for 10 days. I don't understand why it takes so long this day and age to put a hold on funds for ten days when banks have such quick computerized ways to transfer funds from one bank to another.
Any knowledge of why they still do this on large deposits?
It's not about transfers. It's an anti fraud regulation. They are analyzing your account and history for any possible fraud/criminal issues. When it all comes back clear, they will release the funds.
It may also depend on your history with the bank.
If you normally keep a lot of cash in the bank, it takes a lot more money for there to be a hold. In my experience.
Correct. If you carry an average balance of, for example, $40k, they might not place a hold. On the other hand, if you had $40k in the bank, you wouldn't care if the bank held $20k for 7 days.
I don't think anyone has mentioned yet that the bank can't hold the entire amount. Reg CC says they can only hold for 7 days, not 10, and they have to make $5000. of a large deposit on the next banking day.
The truth is it does clear quicker than 10 days in 90%+ of the cases. We do and other financial institutions can return checks up to 30 days. I've had it happen many times in my location although it's rare that weeks after a check was deposited and cleared we got a return notice and had to back it out of the clients account. The 10 day hold time is simply protection for the bank.
If you don't like hold times use the fed fund wire transfer system
I meant Reg CC, not FCC, and it is 7 days, not 10.
It may also depend on your history with the bank.
If you normally keep a lot of cash in the bank, it takes a lot more money for there to be a hold. In my experience.
True. When I first opened my Wells Fargo account, I opened my account with a check for a little over $6,000. It took over three weeks for the check to clear, including weekends.
Now that I've had my account for quite some time, maintain a decent balance (largish by my standards, but probably not-so-large by theirs) and have never had an overdraft or bounced check, they usually give me credit the next day.
These answers help explain the issue. Yes they did release $5,000 the next day, but the balance did take another 10 days. I usually have less than $10,000 in my account at any one time so I suppose that may have something to do with it.
Check clearing is part of the Federal Reserve system. As gentlearts later corrected, in particular it's "Regulation CC" in particular that covers it.
This has nothing to do with the FCC though.
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