Bank Deposits - Hold On Checks? (how much, transfer, cost)

[VeradoDan]

I've been a long-time customer of The Provident Bank. Perhaps it's just because I'm depositing more checks now since I run a business, but it seems like the bank is putting "holds" on so many of my deposits. For instance, I deposited a check today for $249 that has a 5 business day hold, meaning it won't be available in my account until next Tuesday!

I was at the drive-in window and obviously couldn't ask them questions about the policy, but it seems like everything I'm depositing is being held for one reason or another. It's getting to the point where I never know how much money is in my account because it takes so long for everything to clear. Sometimes it has been the difference between thousands of dollars at once.

Does anyone else's bank do this to this extent? Is it some kind of state or federal law that they have to be held this long?

[camaro69]

It's called Regulation CC.

Go in and ask them for a copy of their check hold policy.

[HeatherLynn822]

Affinity does this too.... though they leave the first $100 of a deposit accessible to you immediately, there is a 5 day hold on the rest. I have no idea why they do this, but I agree with you it is very annoying!

[RobRiguez]

Banks have always done this. While its much faster now than it ever used to be, it still takes time to contact the bank the check was drawn from, verify funds, then transfer those funds to your account. The only time it goes faster is if the check you are depositing is from the same bank you have your account at or if it is a business check. Some banks will waive or decrease the hold period for business checks.

Also, I assume you have a business account at the bank and not just a personal account. The rules for each are different and while it may cost a bit more for the business account, it may provide other benefits (electonic fund transfer, merchant account services(cc processing) etc). Lastly, alot of banks will release a good % of the check being deposited if the funds in the account are well above the check amount. So if you have $5k in the account and your depositing $200 they may just release the entire amount immediatly for the fact you clearly have enough to cover the check should it be a bad check.

The best advice I can give tho is to go in (or call) and talk to someone about your concerns and ask what is the best solution they can offer. It may be that you need to change banks. While the rules are similar everywhere, there may be one that fits your personal situation better.