Why Did Chase Put My Check on Hold?

When a check is deposited into a bank account, funds are not always immediately available. This temporary delay, known as a check hold, is a standard practice banks, including Chase, use to manage risk and ensure transaction security. Holds protect both the customer and the bank from potential losses due to uncollectible or fraudulent checks.

Common Reasons for Check Holds

Banks place holds on deposited checks primarily to verify legitimacy and ensure funds are available from the issuing bank. A frequent reason is a new account. If an account has been opened for fewer than 30 days, banks may place holds to mitigate risk. This allows the financial institution time to establish a transaction history and verify the source of funds.

Checks for large amounts often trigger holds due to higher risk. While the specific threshold varies by bank, deposits exceeding $5,525, or $6,725 as of July 1, 2025, in a single day may be subject to an extended hold on the amount over that threshold. The bank confirms the check-writer has sufficient funds before releasing a significant sum.

Suspicion of fraud is another cause for a check hold. Banks are vigilant against altered checks, suspicious endorsements, or counterfeit checks. Irregularities on the check or an unknown source can lead to a hold while the bank investigates authenticity. This measure prevents financial losses from fraudulent activities.

A negative account balance or history of financial instability can also result in holds. If a deposit is made to an overdrawn account, or if the account has a record of repeated overdrafts, the bank may delay funds availability. Banks define “repeatedly overdrawn” as having a negative balance on six or more banking days within the previous six months. This prevents further overdrafts and associated fees.

Checks originating from out-of-state or foreign banks may also experience holds. While federal regulations consider all U.S. checks “local” for processing, the bank may still require additional time to verify funds from an unfamiliar institution. Missing or incomplete information on the check, such as a missing endorsement or an improperly filled-out payee line, can cause delays and result in a hold. Checks deposited via an automated teller machine (ATM) might have different availability rules or cut-off times compared to those deposited in person with a teller, potentially leading to longer holds.

Understanding Fund Availability

Fund availability from a deposited check is governed by federal regulations, primarily the Expedited Funds Availability Act, also known as Regulation CC. This law sets requirements for how quickly banks must make deposited funds available. Generally, for most checks, banks must make a portion of the deposit available quickly.

The standard availability period dictates that the first $225 of a deposit must be available on the next business day following the banking day of deposit. As of July 1, 2025, this amount will increase to $275. The remainder of a local check deposit is generally available on the second business day. However, certain circumstances allow banks to extend hold periods.

These “exception holds” can extend fund availability beyond the standard timeframe. Deposits to new accounts, large deposits exceeding specific thresholds, or redeposited checks may be subject to longer holds. Banks can also extend holds if they have reasonable cause to doubt the check’s collectibility, such as if the paying institution indicates it will not honor the check. Funds may be held for up to 7 to 10 business days. Customers can check the status of a hold through their bank’s online banking portal, mobile application, or by contacting customer service.

Expediting or Preventing Holds

While check holds are a routine banking practice, customers can take steps to expedite fund access or prevent future holds. If a check is on hold, customers might inquire about a partial release of funds. Depositing checks in person with a teller rather than using an ATM or mobile deposit can sometimes lead to quicker availability, as tellers can verify information on the spot. For critical payments, requesting the check issuer to send funds via a wire transfer is often the fastest method, as wire transfers are available the same business day.

To prevent future holds, establishing direct deposit for regular income, such as paychecks, is highly effective, as these electronic transfers are generally available on the next business day. Maintaining a long and positive banking relationship, characterized by consistent account activity and avoiding overdrafts, can build trust with the bank, leading to fewer holds. Ensure all checks are properly filled out and endorsed with “For Mobile Deposit Only” when using mobile banking. Understanding bank-specific policies, including daily or monthly mobile deposit limits, can help avoid unexpected holds.