How Long Can a Credit Union Hold a Check?

Check holds are a common practice at credit unions, temporarily pausing access to deposited funds. This allows the credit union to confirm the check will clear and funds are genuinely available. While sometimes inconvenient, holds protect both the credit union and its members from fraud or insufficient funds. Understanding how these holds work can help members manage their finances.

Reasons for Placing a Check Hold

Credit unions place holds on checks primarily for risk management, ensuring deposited funds are legitimate. New accounts, open fewer than 30 days, often trigger holds. Large deposits, especially those exceeding $5,525 (increasing to $6,725 on July 1, 2025), also prompt holds. A history of repeated overdrafts, such as six or more times in six months, can also lead to holds. Credit unions may also place a hold if they have reasonable cause to doubt the funds’ collectibility, such as suspicions of fraud, visible alterations, or information suggesting the check may not be honored.

Typical Check Hold Durations

Check hold durations vary, often guided by regulations. For routine deposits made in person, funds are typically available by the next or second business day. For example, the first $225 (increasing to $275 on July 1, 2025) of a deposited check is generally available the next business day, with the remainder on the second. Certain reliable checks, like government, cashier’s, certified, and postal money orders, often have faster availability, sometimes even the same day if deposited in person. A business day excludes Saturdays, Sundays, and federal holidays, and deposits made after a credit union’s cutoff time are considered received on the next business day.

Situations Leading to Extended Holds

While standard hold times apply to many check deposits, certain circumstances allow credit unions to extend the hold period. One such situation involves large deposits, where the amount of the check exceeds $5,525 (increasing to $6,725 as of July 1, 2025). This extended hold provides the credit union additional time to ensure the substantial funds are fully collectible.

Another reason for an extended hold occurs if a check has been redeposited after previously being returned unpaid. Accounts with a history of repeated overdrafts, particularly those overdrawn for six or more business days within the last six months, may also face longer hold times. Deposits into new accounts, defined as those opened for fewer than 30 days, are also subject to extended holds. In the event of emergency conditions, such as power outages or natural disasters, credit unions may temporarily extend holds.

Credit unions also have the discretion to extend a hold if they have reasonable cause to doubt the collectibility of the check. This doubt must be based on factual evidence, such as suspicious alterations, a stop payment order, or information indicating insufficient funds. When an extended hold is placed, the credit union is required to notify the member, stating the reason and the exact date when the funds will become available.

Understanding Your Funds Availability

Understanding a credit union’s funds availability policy is crucial. Credit unions must provide a clear policy, often at account opening. Members can also inquire about specific hold times by checking the published policy or speaking with a representative.

For faster access to funds, consider alternatives to checks, such as direct deposit or electronic transfers, which typically provide immediate or next-day access. If a member believes a hold is incorrect or needs funds sooner, contacting a credit union representative is advisable.