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  Home >> Checks/Money Orders >> Checks You Received  
Time Limit for Hold on Payroll Check

What is the definition of a payroll check and how long can a bank place a hold on it?


A payroll check is generally understood to be a check issued in payment of salary or wages earned by an individual. There is no specific deposit holds rule for them. If the check is drawn on the bank into which it is being deposited, the funds are required to be available on the business day following the date of deposit. If it's drawn on another bank within the same check processing region as the bank into which it is deposited, the funds must be available by the second business day following the date of deposit. If the bank it's drawn on is outside the local check processing region, the funds may be held until the fifth business day following the date of deposit.

Funds could be held longer if the bank accepting the deposit provides a notice explaining the more lengthy hold. If the payroll check is issued by state or local government in the same state as the branch of the bank accepting it for deposit, funds should be available on the business day following the date of deposit. There are a number of technical exceptions to these general rules. For more details, check with your bank.

Published on BankingQuestions.com 6/30/08