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Home >> Checks/Money Orders >> Checks You Received
Holds on Paychecks?
How can a bank put a hold on your paycheck that is deposited by ATM without telling you until 5 days later in the mail? I thought paychecks were different. This bank put a hold on my last two bi-weekly paychecks that are drawn on a local bank.
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 Unless your paychecks are issued by a federal, state or local government unit, your bank is entitled to place a hold of up to two business days after the banking day on which the check is received for deposit. If it does so and it hasn't described these holds as the norm for all accounts, it has to provide a notice of the hold, but that notice requirement is satisfied by placing the notice in the mail to you. Additionally, if you deposit the check at an ATM after noon on any banking day, the bank can treat it as received on the next banking day. If your deposit is made at an ATM after work on Friday afternoon, it may not even be processed until Monday (or Tuesday if Monday's a holiday), which means you might not learn about a hold until Thursday of the week after your ATM visit. By then, the hold would probably have expired!
If your bank places holds on your checks deposited at an ATM, change your routine to either make the deposit in person at the bank or, even better, arrange to have your pay check directly deposited to your account. The bank must make direct deposits available for use on the day of deposit.
Published on BankingQuestions.com 1/28/09
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