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How Long Can Bank Hold Funds for Deposit?

How long can a bank withhold funds that are being deposited into a personal checking account?

Your bank should have given you disclosures about its funds availability policies when you opened the account. If you can't find that information, the bank can provide it for you upon request.

Many banks provide next day access to funds deposited by check. Those that don't give next day access, normally make funds from local checks - checks drawn on banks in the same check processing region - available by the second business day after the day of deposit, and funds from non-local checks available by the fifth business day - one week - after the banking day of deposit.

Occasionally, a bank may legally impose a longer hold on funds deposited by check. If they do so, they are required to tell you this, and provide a written notice of the amount held and when the funds will become available. In such a case, funds should be available by the seventh business day after the banking day of deposit for local checks, or the eleventh business day for non-local checks.

Published on 3/13/08