How Long Can a Bank Hold a Check You Deposit?
Understand bank check hold periods, factors influencing fund availability, and your consumer rights when depositing checks.
When a check is deposited into a bank account, the funds are not always immediately available for use. Financial institutions often place a temporary delay, known as a check hold, on these funds. This allows banks to verify the check’s legitimacy and ensure funds are available from the issuer’s account. This mitigates risks like fraud or insufficient funds, protecting both the bank and the account holder.
Standard Check Hold Periods
Federal regulations, the Expedited Funds Availability Act (EFAA) and Regulation CC, govern how quickly banks must make deposited funds accessible. A “business day” includes weekdays, Monday through Friday, excluding federal holidays. If a deposit is made after the bank’s daily cut-off time, it is considered deposited on the next business day.
Under these rules, a portion of a deposited check, specifically the first $225 (set to increase to $275 on July 1, 2025), must generally be available by the next business day after the deposit. For the remaining amount of most checks, funds are typically made available on the second business day. Banks may, at their discretion, make funds available sooner than these maximums.
Factors That Extend Check Holds
While standard hold periods exist, several circumstances permit banks to extend these times beyond the usual availability. Deposits made into new accounts, open for less than 30 days, commonly trigger longer holds as banks assess risk. Similarly, large deposits, typically those exceeding $5,525 in a single day, often lead to extended holds for additional verification. The extended hold for such large deposits can add one to five business days.
A check that has been redeposited after previously being returned unpaid may also be subject to a longer hold, as this indicates a past issue with collectibility. Accounts that have been repeatedly overdrawn, with a negative balance six or more days within six months, can also result in extended holds on future deposits. Furthermore, if a bank has reasonable cause to doubt the collectibility of a check, due to suspicious characteristics or a stop payment, it can impose a longer hold. Lastly, emergency conditions like natural disasters or system malfunctions can disrupt banking operations, allowing banks to extend hold times until normal processing. Banks must notify customers in writing of any extended hold, specifying the reason and the date funds will become available.
Exceptions for Immediate or Expedited Availability
Certain types of deposits are often exempt from typical check hold periods. Cash deposits, when made in person to a teller, are usually available for immediate withdrawal. Electronic direct deposits, such as paychecks or government benefits via Automated Clearing House (ACH) or wire transfers, are typically available on the same day they are received by the bank.
Official checks often have expedited availability, including:
U.S. Treasury checks
Cashier’s checks
Certified checks
Teller’s checks
U.S. Postal Service money orders
When deposited in person, funds from these checks are frequently available by the next business day. Additionally, checks drawn on the same financial institution where they are deposited, referred to as “on-us” checks, generally clear by the next business day.
Consumer Actions and Protections
Understanding a bank’s funds availability policy is important for consumers, as banks are required to provide this information upon account opening and during policy changes. If a check deposit is on an extended hold, customers have the right to inquire about the specific reason for the delay. For trusted customers with a solid banking history, it may be possible to request that a hold be shortened.
Maintaining clear communication with the bank and detailed records of deposits can assist in resolving any discrepancies. If a consumer believes a hold is improper or unfair and cannot resolve the issue directly with their bank, federal agencies like the Consumer Financial Protection Bureau (CFPB) offer resources and avenues for recourse. These protections ensure consumers have access to information and a means to address concerns regarding their deposited funds.