I have two cashier's checks drawn from my bank totaling 90k, and went to my bank to cash them. I was told that they would need to order the money and I wouldn't get it for a week. Can they do that?
Untitled
Contrary to common belief, most banks don't carry huge amounts of cash in their vaults. Money sitting around in the bank's vaults not only doesn't earn anything for the bank, in fact it costs extra because of the security needed, and presents a real security risk for the bank. Many banks keep only enough cash to cover normally expected cash needs for the interval between cash shipments. If the bank office is one that is a net user of cash, it pays out more cash than it receives in deposits, its cash balances can run low between shipments.
It appears that your bank would not normally expect to have an individual customer with a need for $90,000 in cash at one time. What some banks in similar situations have suggested is that they provide some cash and new cashier's checks for the remaining funds until more cash is available. Your bank can do what it has done, and it's perfectly legal.
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
Contrary to common belief, most banks don't carry huge amounts of cash in their vaults. Money sitting around in the bank's vaults not only doesn't earn anything for the bank, in fact it costs extra because of the security needed, and presents a real security risk for the bank. Many banks keep only enough cash to cover normally expected cash needs for the interval between cash shipments. If the bank office is one that is a net user of cash, it pays out more cash than it receives in deposits, its cash balances can run low between shipments.