I went to a bank to deposit a local check for $2700.00. The teller took my deposit and said nothing. A few days later, I got a notice that the check was placed on hold for five days. The company who issued the check said the check cleared the next day. Can the bank do this?
The bank has a funds availability policy and they have given you at least one copy of this. If the check, based on its routing, is considered non-local, the bank can decide to place a hold on it and send you a notification if you were not told when you made the deposit. This is a common practice, but it depends on where the two banks are in relation to clearing. This area has been made larger and larger, so it is possible it was considered "local". Ask your bank for any clarification on what they will hold as it applies to your account, as that may also influence their hold decisions.
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The bank has a funds availability policy and they have given you at least one copy of this. If the check, based on its routing, is considered non-local, the bank can decide to place a hold on it and send you a notification if you were not told when you made the deposit. This is a common practice, but it depends on where the two banks are in relation to clearing. This area has been made larger and larger, so it is possible it was considered "local". Ask your bank for any clarification on what they will hold as it applies to your account, as that may also influence their hold decisions.
