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I assume you mean deposits rather than withdrawals, since how can you hold a withdrawal? Would that be "No you can't have your money today, come back and get it in a week."?
As for deposits, we have a non-interest bearing business account, and if we make a large deposit (like $100k or more), they hold the funds for a week before they are available (although they can override at their option). So I don't think that is true.
The 7-10 day hold on a large deposit is Federal Law...not just the teller doesn't like how you look so they have decided to be difficult. As a former bank teller, I can't tell you how frustrating it is to have a customer try to make you do something that, by law, you can't do. The attitude is that the customer knows all the "in and outs" of banking law and they don't. I didn't know anything about it either until working for a Bank, but we had to have ongoing training updates on all the Federal regulations that all Banks have to go by. I loved my customers, but when they started telling me what I could and could not do, it became comical at times. But I enjoyed calling my Manager over to confirm to them that what I was telling them was indeed correct, and that it was POSSIBLE that a deposit could be held for a number of days.
The 7-10 day hold on a large deposit is Federal Law...not just the teller doesn't like how you look so they have decided to be difficult. As a former bank teller, I can't tell you how frustrating it is to have a customer try to make you do something that, by law, you can't do. The attitude is that the customer knows all the "in and outs" of banking law and they don't. I didn't know anything about it either until working for a Bank, but we had to have ongoing training updates on all the Federal regulations that all Banks have to go by. I loved my customers, but when they started telling me what I could and could not do, it became comical at times. But I enjoyed calling my Manager over to confirm to them that what I was telling them was indeed correct, and that it was POSSIBLE that a deposit could be held for a number of days.
How does that work with the overrides then? Because they have done that for us before. We would have a construction draw for a half million dollars come in from a source that we KNEW it would not bounce (back when construction was booming), and they allowed us to take the risk on it, and cleared the funds for use the next day.
I have also had the bank ASK me if we wanted a hold on a deposit before it became available, which I thought was interesting.
I would never argue with the tellers at the bank (yes I know that people do that), and I assume that if they tell me something has to be done, that they know their jobs and are correct. However, I go to as many as 10 different banks every month for our rental business, and I have found that they all have different policies on various things. I wish it was more standardized. Because it is so un-standardized, I might ask the teller questions, but it is with the goal of learning and understanding, not to argue.
How does that work with the overrides then? Because they have done that for us before. We would have a construction draw for a half million dollars come in from a source that we KNEW it would not bounce (back when construction was booming), and they allowed us to take the risk on it, and cleared the funds for use the next day.
I have also had the bank ASK me if we wanted a hold on a deposit before it became available, which I thought was interesting.
I would never argue with the tellers at the bank (yes I know that people do that), and I assume that if they tell me something has to be done, that they know their jobs and are correct. However, I go to as many as 10 different banks every month for our rental business, and I have found that they all have different policies on various things. I wish it was more standardized. Because it is so un-standardized, I might ask the teller questions, but it is with the goal of learning and understanding, not to argue.
My guess is that you had brought the same check in before and that the bank had a high amount of confidence that it would be paid, and cleared the funds for use the next day. The reason you were asked if you wanted a hold on a deposit before it became available is that if the check didn't clear, your account would be debited for the amount of the check. You don't state the amount of the check but in my opinion that would be the reason you were asked...it was an amount that would normally be subject to a hold but being a regular customer has a lot to do with it as well. My previous post may have seemed like everything was black and white, but it isn't always. In either circumstance mentioned, I would have asked a Manager for approval on how to proceed. (Sorry I've gotten off track of the original post)
It really is different at each bank. Since we were small bank, we knew our customers well, and we RARELY put holds on anything. But we'd also figure out real quick when someone was trying to pull something and we'd slap that hold on quick.
Fellow teller slapped a hold on a 25K check from a customer and busted up a huge kiting ring, and we got out clean from that one. I think she had seven banks wrapped up in it, to the tune of 200K, and two banks were left holding the bad checks. They prosecuted.
I agree with you, Tallysmom. The bank where I worked was smaller as well and we knew most of our customers well. I think that made it easier. Not sure how it would be at a large bank. Sometimes we had to use discretion when dealing with checks of large amounts. But I was surprised at how many people would just come in and think we could cash any check of any amount, whether they had an account with us or not. Then you have to explain that, for example, we'd be more likely to take a check from a 10 year customer with no return checks as opposed to someone we don't know who just walked in to cash a $1500.00 check and didn't even have an account with us. They understand more if you have to explain it that way.
I agree with you, Tallysmom. The bank where I worked was smaller as well and we knew most of our customers well. I think that made it easier. Not sure how it would be at a large bank. Sometimes we had to use discretion when dealing with checks of large amounts. But I was surprised at how many people would just come in and think we could cash any check of any amount, whether they had an account with us or not. Then you have to explain that, for example, we'd be more likely to take a check from a 10 year customer with no return checks as opposed to someone we don't know who just walked in to cash a $1500.00 check and didn't even have an account with us. They understand more if you have to explain it that way.
I spent 13 years in banking and I rarely snapped... but one of the three times I did was over a man screaming at me for not cashing a three party stale dated check that looked like it had been washed. LITERALLY -- like in a pocket in a washer.
it was a very busy day and the bank was filled with customers, the line out the door. The check was for 200 bucks and as he screamed, I just stood there and took it with all those people staring at me, until he finally said he should close his account.
I flung open my drawer and yelled back, Fine -- you want your five bucks now, or do you want me to mail you a check?
Everybody laughed.... and he skulked out of the bank, tail tucked between his legs. My supervisor and boss pulled me in the back and I told my boss she could fire me if she wanted, he was NOT getting an apology.
She told me I had handled it very well, and she'd stand behind me for it.... she just wanted me to take a break for a few minutes and calm down....she was a great a boss.... I've a had a few in banking....
I assume you mean deposits rather than withdrawals, since how can you hold a withdrawal? Would that be "No you can't have your money today, come back and get it in a week." As for deposits, we have a non-interest bearing business account, and if we make a large deposit (like $100k or more), they hold the funds for a week before they are available (although they can override at their option). So I don't think that is true.
No. I’m talking about withdrawing your available money from an interest-bearing checking account.
This is my understanding & I gladly welcome anyone to correct me on this. If you have an interest-bearing account the bank is paying you to use your money. The bank has the right to hold/delay any withdrawal since they may not have all of your money on hand—they lent it out to somebody else. If the bank plans on going bankrupt soon, they can start holding/delaying your money before they actually go under.
If you have a non-interest bearing account you are asking the bank to HOLD money for you instead of putting it under your mattress. You can withdraw available money on the same day with no hold/delay. I also heard that interest-bearing accounts less than 0.5%APY may be treated as non-interest bearing account, but again I’m not sure!
As for your business account I suggest you read up on Sweep accounts & find out if you should be concerned or not.
I welcome anyone in the banking industry to explain/disprove what I’m trying to convey here. I'm just trying to learm more & help out.
I assume you mean deposits rather than withdrawals, since how can you hold a withdrawal? Would that be "No you can't have your money today, come back and get it in a week."?
As for deposits, we have a non-interest bearing business account, and if we make a large deposit (like $100k or more), they hold the funds for a week before they are available (although they can override at their option). So I don't think that is true.
No the junior lender can foreclose it is just that the first mortgage holder gets paid first, so if there isn't going to be anything left they don't bother. However if the home isn't underwater there is a benefit to them foreclosing.
No the junior lender can foreclose it is just that the first mortgage holder gets paid first, so if there isn't going to be anything left they don't bother. However if the home isn't underwater there is a benefit to them foreclosing.
I think you hit "reply" to the wrong thread. This answer makes sense in response to a different post of mine
No. I’m talking about withdrawing your available money from an interest-bearing checking account.
This is my understanding & I gladly welcome anyone to correct me on this. If you have an interest-bearing account the bank is paying you to use your money. The bank has the right to hold/delay any withdrawal since they may not have all of your money on hand—they lent it out to somebody else. If the bank plans on going bankrupt soon, they can start holding/delaying your money before they actually go under.
If you have a non-interest bearing account you are asking the bank to HOLD money for you instead of putting it under your mattress. You can withdraw available money on the same day with no hold/delay. I also heard that interest-bearing accounts less than 0.5%APY may be treated as non-interest bearing account, but again I’m not sure!
As for your business account I suggest you read up on Sweep accounts & find out if you should be concerned or not.
I welcome anyone in the banking industry to explain/disprove what I’m trying to convey here. I'm just trying to learm more & help out.
If you decide to take 100,000 dollars out of your account and you want cash -- absolutely you need to give a bank advance notice. They need to order the money to get it in. Tellers have limits and branches have cash limits -- they all do. When you come in and want a large amount of cash, even if we had it, we couldn't give it all to you and then shut down and wait for our next cash shipment. We have a business to run, other clients to service.
But if you want to take 100K out of your account and you want a check -- we can cut the check right there, debit your account for it and it's yours. No waiting.
By the way I once worked at a bank SO small our whole branch limit was 25K. This was ALL the money the branch held, including our ATM.
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