I recently deposited my federal stimulus check into my checking account on July 4th. Due to the fact that it was a holiday and then a weekend, my bank didn't make these funds available until Tuesday. As a result of this, I overdrafted my account. I have been told that it is illegal for a bank to put any type of hold on a federal check. Is this true?
July 4, 2008, was a Friday, and therefore not a business day or banking day, even if your bank was open for business. That means that your deposit was considered made on Monday, July 7. It is permitted and routine for banks to delay availability of a deposited Treasury check until the opening of the next business day following the banking day of receipt, so your bank appears to have complied with the rules.
Bankers know that deposit availability is complicated. They have a hard time understanding the rules themselves, so they usually understand when a customer gets caught in a situation like the one you've described. If you approach your banker and explain how things got messed up for you, you're likely to get a refund of at least some of the overdraft charges.
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July 4, 2008, was a Friday, and therefore not a business day or banking day, even if your bank was open for business. That means that your deposit was considered made on Monday, July 7. It is permitted and routine for banks to delay availability of a deposited Treasury check until the opening of the next business day following the banking day of receipt, so your bank appears to have complied with the rules.