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Home >> Checks/Money Orders >> Checks You Received
A 42 Day Hold on a Check?
When I deposited a check in my account, they said I would have to wait 21 business days before I could withdraw funds. After that 21 days, they told me my check had cleared, but I would have to wait 21 more business days. I have, and now they are making up stuff and still won't let me withdraw money. Can they do that?
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 Wow! We cannot imagine a set of circumstances that would warrant holds that long. Even if your deposit was to a savings account that is not covered by funds availability regulations, a hold of 42 business days on a deposited check seems outrageous.
If your account is a savings or money market deposit account and you're not in one of the two or three states that has rules on funds availability for savings accounts, there's nothing to prevent the bank from placing such holds. Nothing, that is, except depositors that "vote with their feet" to take their business elsewhere. If the account is a checking or share draft account, the holds you've described would earn a bank or credit union a regulatory citation, unless the institution could come up with a very convincing argument to justify them.
Your question emphasizes how important it is for consumers to ask for and understand their bank or credit union's policy on making deposits by check available for withdrawal. While institutions are required by law and regulation to disclose their funds availability policies on checking accounts, in most states you'll need to specifically ask for a policy on savings account deposits. The time for finding this information out is not when you've already made the deposit and have a need to use the funds.
Published on BankingQuestions.com 5/18/09
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