Check hold policies vary between banks, so check with your institution about how long you have to wait to access the funds. There are several reasons banks hold checks. Your bank may hold a deposited check if there are insufficient funds in the payer's account or if the payer's account is closed or blocked for some reason.
Banks usually resend checks with issues to the paying institution, but this results in a longer delay for the depositor. Some banks also issue holds for deposits on new accounts.
Accounts that have no or little history may automatically qualify for holds on all check deposits until the time that the bank feels you have solidified your relationship with it. Accounts that have negative history—that is, accounts that frequently bounce payments or go into overdraft —may also have checks held. The payer also has a lot to do with hold times as well. If you've never deposited a check from that person before—and it's a sizable amount—your banking institution may choose to hold it until it clears.
Certain institutions may hold checks that are deposited through mobile banking apps or through the automated teller machine ATM. These deposits have to be verified and cross-checked before the bank can release the funds. It's always a good idea to check with the bank about its policy when it comes to its hold times for these types of deposits.
When you deposit a check, whether at an ATM, a teller's counter inside the bank, or a drive-through window, you typically get a receipt that usually says when the funds will be available. Keep the receipt handy until the check clears. The funds-availability date on the receipt lets you know when it may be time to contact the bank regarding hold inquiries. If you don't receive a receipt, however, you'll need to contact your bank to check on this.
There are times when the bank will override the hold for you. In cases of emergency, if the hold has been on too long, if you're a really good customer, or if the bank decides to verify the check at the time of the deposit, you may be off the hook.
That generally requires a trip to your branch. Although it will cost you some time, it may be worth it if you need the funds right away or if it's a large check that just can't wait. Depending on the amount of the check, you may have access to the full amount in two days. Some banks make a portion of the check available immediately or within one business day. The bank may be likely to clear checks right away if you have a consistent history with a certain payer.
Say, you're a freelancer and receive checks every other month for work you do for that company. The bank may hold the initial check to make sure it clears. If you let them know you are expecting similar checks from the same company on a regular basis, the bank may release the funds to you for subsequent deposits after a pattern is established. It bears mentioning again that large deposits may come with longer hold time.
The number of days the bank holds these checks depends on your relationship with the institution. You're more likely to get the money immediately—or within fewer than 10 days—if you have a healthy account balance and no history of overdrafts.
A history of overdrafts and low account balances may mean you'll have to wait the full 10 days to receive the money. Please try again later. Best Of Banking. Banking Reviews. Banking More from. Napoletano Contributor. By Ben Gran Contributor. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances.
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