This Regulation CC funds availability chart breaks down funds availability for different types of deposits covered by the federal guidelines.Ĭashier's checks, certified checks and teller checks Longer hold periods, when the financial institution can prove a lengthier hold is reasonableįunds availability timelines can vary, based on the type of funds being deposited.Up to five additional business days (totaling seven) for local checks.Up to two business days for on-us checks (meaning checks drawn against an account at the same bank).Regulation CC permits banks to hold certain types of deposits for a “reasonable period of time,” which generally means: How Long Can a Bank Hold Funds?īanks have to follow certain guidelines when establishing a funds availability policy. And wire transfers are typically irreversible-the person who sent the transfer typically can’t get the money back, so your bank can credit those funds to your account without fear of a reversal later. For example, if you’re depositing $5,000 in cash, the bank has money in hand to credit to your account. This is unlike some other deposit methods. With checks, institutions don’t know if the check is collectible until it’s paid by the institution it’s written from. As mentioned above, this can create headaches for both you and the bank, especially if you’ve used funds from a bounced check to pay bills or make purchases.Ĭhecks get special treatment compared to other types of funds because there’s a degree of uncertainty surrounding them. Anyone can write a check to you, but if there isn’t sufficient money in their account, the check will bounce. Why Do Banks Hold Checksīanks hold checks to verify that the check will be paid. Having your bank hold a check can work in your favor if it allows you to avoid overdrafts and their associated fees. And, as a side effect, you could be charged returned check or overdraft fees for any transactions the bank has to cover.įunds availability holds protect you and the bank against the consequences of returned payments. If the check you deposited ends up getting returned because the payer had insufficient funds, your bank would have to cover those payments. Without a hold, you could write checks, pay bills or make purchases with your debit card against your balance. Placing a hold on those deposited funds in the meantime allows the payment to clear your account.

In other words, the bank wants to make sure that the deposit is good before giving you access to the money.ĭepending on the type of deposit involved, it can take several days for the money you deposit to be transferred from the payer’s bank to your bank.

Why Do Banks Hold Funds?īanks can hold deposited funds for various reasons, but, in most cases, it’s to prevent any returned payments from your account. Many banks also make their funds availability policies accessible online. These policies are usually disclosed to you when opening your account initially. Under Regulation CC, the timing for when deposited funds will be available is usually based on the type of deposit, when you made it during the business day and, in some cases, the amount deposited.īanks then can use these guidelines to create and implement funds availability policies.

Guidelines for disclosing funds availability policies to customers.

Timing for making deposits available to customers.

Specifically, Regulation CC covers two things: Federal Regulation CC (Reg CC for short) offers a framework for banks to use when setting their funds availability policies. Funds availability describes when you can access the money you deposit into a bank account.

Reg cc check holds 2021