With banks putting holds now on every deposit we make, does the bank earn interest on this money that is sitting in our accounts, even though it is not available for us to use?
Untitled
Usually, no, and banks actually don't put holds on the majority of checks deposited. Most banks generally make funds from deposited checks available on the first business day following the day of deposit. If your account earns interest, the bank is required to start accruing interest no later than when the bank gets use of the funds, even if it delays your access to the same funds. In many cases, deposits will earn interest from the day of deposit, even when holds are placed.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Usually, no, and banks actually don't put holds on the majority of 