My husband deposited his first PERS retirement check and the bank placed an eleven day hold on it. The check is drawn on the state of California. How long can my bank put a hold on this check that is drawn on a state's treasury?
If you deposit a check that is drawn on the state in which the depository bank is located, the bank would have to make the funds available the next business day. Since the check is drawn on another state, the regulations would allow the bank to place an eleven day hold on the funds. Visit with your branch manager and let him know that this will become a regular occurrence, and see if you can work out with them to not place a hold on these items. Also, you might want to check with PERS and see if they offer direct deposit, as those funds will then be made available the day they are deposited.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
If you deposit a check that is drawn on the state in which the depository bank is located, the bank would have to make the funds available the next business day. Since the check is drawn on another state, the regulations would allow the bank to place an eleven day hold on the funds. Visit with your branch manager and let him know that this will become a regular occurrence, and see if you can work out with them to not place a hold on these items. Also, you might want to check with PERS and see if they offer direct deposit, as those funds will then be made available the day they are deposited.
