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It may be standard practice with banks. I've had BofA for many years, and a 10 day hold was put on a large deposit I made. Though the deposit cleared in about 5 days, and the money was available to me at that point.
Wow. Recently I put a $20,000.00 check in our business account. I regularly keep anywhere from $3,000.00 to $20,000 in there, it's never been overdrawn, and I probably had about $8,000.00 when I put the $20 in and they gave me no hold notice (I think they're required to tell you it's being held, right?). They're a local county bank and have been really really easy to deal with...never seem to hold checks, even out of state ones. I guess I have a very liberal bank, huh.
They're supposed to tell you but it's legal for them to simply mail you a notice of the hold.
Probably because your over the limit of what can be deposited before having to notify the Federal Government. Probably to run a check on any connections you may have to crime, Drugs, or Laundering Money, and following the trail back to where the money came from, and your deposit record there. I think that number is anything over 10,000 bucks for them to crawl up your backside and look you over. That's why most folks use smaller amounts, like four 5000 dollar deposits. No alarm bells. .
This is erroneous information.
Banks have to report CASH transactions that are $10k and over. They do not have to report (nor do they regularly report) CHECKS that are over $10k.
The reason for the hold is to make sure a large check is legit and will clear the institution and account upon which it is written. That's it. Nothing more sinister.
That's why most folks use smaller amounts, like four 5000 dollar deposits. No alarm bells. .
That's more likely to get you in trouble than simply depositing a 20k check. Structuring deposits in an attempt to avoid any possible reporting is problematic
That's more likely to get you in trouble than simply depositing a 20k check. Structuring deposits in an attempt to avoid any possible reporting is problematic
Very. And trained bank personnel will catch that and are likely to report such activity.
KanHawk:
You Are lucky it was only 10 days, for an out of state other bank drawn check. Next time ask for a cashier's check, it will clear faster as I believe the check funds are then held for the check to clear.
I deposited money via a cashiers check into an account I own at One CU. I then wanted to move $20K of it my other CU account at another CU account we have, I put it in my regular checking and wrote myself a check, BUT They kept funds NOT AVAILABLE for 14 DAY! On my OWN LOCAL account!
It was because of the amount {$20K is no small check}, and while it probably Cleared to the Second CU in just two days, they withheld it from me for the 14 business days {plus weekends }. I deposited it on like the 5th,and I couldn't access it until the 23rd!
Now when I transfer smaller amounts {like $3000 or less} they have no trouble it seems clearing them for me quickly.
SO be pleased it cleared so fast. I had to wait almost a month! simply due to the amount and it was simple "personal check", Of course a cashier's check would have cost me some $$,and I didn't NEED the $20k right away, it was moved to stay in the new MM account with higher rate anyway, but it was the mere Idea I didn't like it!
We deposit a lot of checks for our rental, real estate and construction businesses, and I've seen them come back bounced as much as 2 weeks after depositing. Usually, they show up in a day or two, but every now and then, one takes much longer. I don't know why. So I understand the need for the hold on large checks. It is partly for their protection and partly for yours. If you deposit the check, and then write a whole bunch of checks against it, and then the check bounces, the bank may cover your checks temporarily, but will hold you ultimately liable, and will want reimbursement, immediately. For small amounts, that isn't too big of a deal, but for large amounts, it can be.
We regularly deposit large checks (6 digits isn't unheard of for construction draws, and 5 digits is pretty common for earnest money or commissions, or even occasionally for rent, if someone wants to pay ahead). Both Wells Fargo and Washington Federal will waive the hold if we ask them to, when the check writer is a known entity. Either a title company, or someone we regularly get checks from. They know us, know we have never bounced a check, ever, and figure we know whether the deposited check is a risk or not.
KanHawk:
You Are lucky it was only 10 days, for an out of state other bank drawn check. Next time ask for a cashier's check, it will clear faster as I believe the check funds are then held for the check to clear.
Err.... banks don't use the pony express these days to move paper checks around. It's all electronic. Everything clears in 2 days or less. That doesn't mean your bank will give you access to the money. It's in their interest to use that zero interest loan from their customer for as long as possible.
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