Why Is My Chase Check on Hold?
Understand why Chase holds checks, fund availability, and how to navigate common banking practices for smoother deposits.
When a check is deposited into a bank account, the financial institution often places a temporary hold on the funds. This practice is a standard part of banking operations, designed to manage risk and protect both the bank and its customers from potential fraud or insufficient funds. While inconvenient, it is a routine security measure within the banking system, governed by federal regulations.
Understanding Check Hold Reasons
Several factors can lead a bank to place a hold on a deposited check. One common reason is depositing a check into a newly opened account, as banks require time to establish a banking history. Accounts open for less than 30 days are frequently subject to initial holds. Large deposit amounts, such as checks exceeding $6,725, are typically subject to longer holds due to higher financial risk.
Checks drawn on distant or foreign banks may also incur holds, requiring additional time for interbank verification. If a check has been previously returned unpaid and is redeposited, it is highly likely to be held. A customer’s account history, particularly frequent overdrafts or returned checks, can also trigger holds. Banks may also place immediate holds if fraudulent activity is suspected. Third-party checks, made out to one person and then endorsed to another, are often considered higher risk and can lead to extended holds.
Anticipating Check Hold Durations and Fund Availability
Federal law, specifically Regulation CC (Expedited Funds Availability Act), sets guidelines for how quickly banks must make deposited funds available. For most check deposits, the first $275 must generally be available by the next business day. Certain types of deposits often qualify for next-business-day availability if deposited in person to a bank employee:
Government checks
Cashier’s checks
Certified checks
U.S. Postal Service money orders
The remaining funds from local checks are typically available within two business days after deposit. However, banks can extend the hold period for reasons like large deposit amounts, new accounts, or suspected fraud. These extended holds commonly last up to seven business days. In exceptional circumstances, such as emergencies or repeatedly overdrawn accounts, holds might occasionally exceed seven days. When a bank places a hold, it is legally required to provide the customer with a notice. This notice specifies the reason for the hold and when funds are expected to become available. The bank’s funds availability policy should also be disclosed to customers, often at account opening.
Navigating a Check Hold
If a hold has been placed on your deposited check, first review the notice provided by the bank. This notice outlines the specific reason for the hold and indicates when funds are expected to be available. Understanding this information clarifies the situation.
It is beneficial to contact your bank’s customer service directly, by phone or by visiting a local branch. When connecting with a representative, have your account number, check details, and deposit date readily available. Inquire about the precise reason for the hold and ask if actions can expedite fund release, such as providing additional verification.
For future deposits, consider alternative methods to avoid potential holds. Direct deposits, wire transfers, or Automated Clearing House (ACH) transfers typically make funds available on the same business day. These electronic methods bypass check-clearing processes that can trigger holds. Maintaining a positive banking history, including avoiding overdrafts, can also contribute to fewer future holds.