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Home >> Accounts >> Checking Accounts
What Happens During a Hold?
If I open an account and deposit a large check, they say there's a seven day hold on it. What process do they do on the seven days?
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 While those seven business days are passing, the check is sent on its way physically or electronically to the bank it's drawn on for payment. If that bank pays the check, nothing further happens until the end of the seven business day period, at which time the funds are made available to you for the payment of checks you've written or for withdrawal.
If when the deposited check arrives at the bank it's drawn on, the paying bank refuses payment, the paying bank prepares the check for return to your bank, and may send an advance notice of its return of the check. When your bank receives the advance return notice or the check, it charges your account back for the amount of the check, adding its fee for returned deposited items, if any.
Banks are supposed to use expeditious methods to get that check to the paying bank as promptly as practicable and, when a check is returned unpaid, to similarly expedite its return trip. Note that the bank will charge back a returned deposited check to your account even if you have been given access to the funds in the meantime.
Published on BankingQuestions.com 10/13/09
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