How Long Can a Bank Hold a Deposited Check?

A bank “check hold” is a temporary restriction placed on funds from a deposited check, meaning the money is not immediately available. This practice allows financial institutions to ensure the check is valid and that the funds will successfully transfer from the payer’s bank. Holds are a measure to protect both the bank and the customer by preventing issues like overdrafts or fees from returned checks. This waiting period helps mitigate the risks associated with check fraud.

Understanding Check Holds

Check holds are part of a bank’s risk management strategy, designed to ensure transaction integrity. When a check is deposited, the bank provisionally credits the account, but the actual transfer of funds from the payer’s bank can take time. Federal regulations, specifically Regulation CC (Reg CC), govern how long banks can hold these funds in the United States. Reg CC was established to address concerns about excessive hold periods and standardize fund availability.

Under Reg CC, banks must make deposited funds available within specific timeframes. For most checks, the first $225 (or $275 as of July 1, 2025) of a deposit must be available on the next business day. The remaining amount of local checks is available by the second business day following the deposit. Banks have some flexibility within these limits but must disclose their funds availability policies to all account holders. The primary goal of these regulations is to balance consumer access to funds with the bank’s need to prevent losses from uncollectible checks.

Factors Affecting Hold Times

Several factors can influence how long a bank holds a deposited check. The type of check impacts the hold duration. Government checks, cashier’s checks, certified checks, and U.S. Postal Service money orders have shorter hold times, often available the next business day if deposited in person. Conversely, personal checks, especially those from out-of-state or foreign banks, may experience longer holds as they require more time for verification.

Deposit method also affects funds availability. While in-person deposits with a teller can expedite access to funds, deposits made via ATM or mobile app might lead to slightly longer holds. Deposits at ATMs not owned by your bank could extend the hold period. Banks have cutoff times for processing deposits, and any check submitted after this time will be treated as deposited on the next business day, delaying availability.

Account history also determines check holds. New accounts, those open for less than 30 days, may be subject to extended holds on all deposited checks. Accounts with a history of frequent overdrafts or returned checks might trigger longer hold periods, as banks aim to mitigate risk. Large check amounts, deposits exceeding $5,525 (or $6,725 as of July 1, 2025), are often subject to extended holds on the amount above this threshold, which can last up to seven business days. Banks may also place holds if they have reasonable cause to suspect fraud or if the check has been redeposited after previously being returned unpaid.

Accessing Your Funds

Account holders should understand the distinction between funds being “available” and a check being “cleared”. Funds are considered “available” when the bank has provisionally credited your account, allowing you to use the money. However, a check is “cleared” only when the funds have been successfully transferred from the payer’s bank to your bank, a process that can take several business days. If a check is returned unpaid after funds have been made available, the bank can reverse the credit, potentially leading to a negative balance and associated fees.

Account holders can determine their bank’s hold policy and check fund availability through various channels. Funds availability information is provided when opening an account and is accessible via online banking portals, mobile applications, or customer service. Deposit slips or ATM receipts may also indicate when funds from a deposit will be available. For faster access to funds, customers can consider alternatives to paper checks, such as direct deposit or electronic transfers like ACH payments or wire transfers, which are often available the same or next business day. Some financial institutions may also offer expedited fund availability for a fee.