How Long Can a Bank Hold a Check and Why?

When a check is deposited into a bank account, the funds are not always immediately available for use. Banks often implement a “check hold,” a temporary delay before the deposited money can be fully accessed. This practice protects the bank and its customers by allowing time to verify the check’s legitimacy and ensure funds are collected from the issuing bank, mitigating risks like fraud or insufficient funds.

Standard Check Hold Durations

Check hold durations are primarily governed by federal regulations, specifically the Expedited Funds Availability Act (EFAA) and Regulation CC. A “business day” is any day other than a Saturday, Sunday, or federal holiday. Most check deposits follow a standard availability schedule.

For checks deposited in person to a bank employee, the first $225 of the total deposit must be made available by the next business day. This amount will increase to $275 on July 1, 2025. For deposits exceeding this initial threshold, the remaining funds usually become available on the second business day after the deposit date.

Certain types of deposits often have faster availability, typically by the next business day if deposited in person. These include:
Cash
Electronic payments
U.S. Treasury checks
U.S. Postal Service money orders
Federal, state, or local government checks
Cashier’s checks
Certified checks
Teller’s checks

Deposits made after a bank’s daily cut-off time may be treated as if they were made on the next business day, extending the hold period. Cut-off times can be no earlier than 2:00 p.m. at physical branches or noon at ATMs.

Situations Leading to Longer Holds

Banks can extend check holds under specific circumstances, known as “exception holds.” One common reason for an extended hold is a large deposit. If the total amount of checks deposited in a single day exceeds $5,525, the bank may hold the amount over this threshold for a longer period. This limit will adjust to $6,725 starting July 1, 2025. The portion exceeding this amount may be held for up to five additional business days, making the total availability up to seven business days.

Accounts that have been newly opened, typically within the first 30 days, may experience longer hold times. During this initial period, banks may hold deposited funds for up to nine business days.

Another situation involves accounts with a history of repeated overdrafts. If an account has been overdrawn multiple times within the preceding six months, particularly if it had a negative balance on six or more banking days, banks can extend holds to protect against further losses.

Banks may also place extended holds if they have a reasonable cause to doubt the collectibility of the check. Reasons include altered checks, insufficient funds, stale-dated (over six months old) or post-dated checks. Checks previously deposited and returned unpaid are also subject to longer holds upon redeposit. In rare cases, emergency conditions, such as natural disasters or communication malfunctions, can also lead to extended holds.

Bank Obligations and Consumer Protections

Federal laws, including the Expedited Funds Availability Act (EFAA) and Regulation CC, protect consumers regarding check holds. Banks must notify customers if a hold is placed on their deposit, specifying the amount, reason, and availability date. For in-person deposits, notice is typically given at the transaction. Otherwise, the bank must mail or deliver notice by the first business day after the deposit or when hold facts become known.

Banks must also provide a written funds availability policy outlining general rules and exceptions for deposit availability. This helps consumers understand their rights and bank procedures. If a bank imposes an exception hold without required notice, it may refund overdraft or returned-check fees incurred due to delayed availability.

Managing Check Holds

Understanding check holds helps consumers manage finances effectively. If a check deposit is on hold, contact the bank to understand the reason and availability date. Banks are generally willing to explain their policies. Requesting an early release of funds may be possible, especially with a strong banking relationship and good account management. While not guaranteed, banks may consider such requests.

To minimize future holds, consider alternative payment methods for significant transactions. Wire transfers and direct deposits are typically available immediately or by the next business day, as they are electronic fund transfers. Cashier’s checks, certified checks, and money orders generally clear faster than personal checks. When depositing a check, doing so in person at a bank branch before the daily cut-off time can facilitate quicker processing. Familiarizing oneself with the bank’s funds availability policy, often found in account agreements, provides valuable insight.