Bank check holds(anyone in banking explain?) (1 Viewer)

[Chock Full o Nuts]

Been a while since I've had a deposit put on a hold. Not pressed, but just trying to make sense of it.
I know I've had total deposits into my biz account exceeding their stated limit (5,525)with no hold. Just had to clear. (No, not enough in there to cover).
Think partially, may have to do with usually, someone known me forever and have seen the checks before from payers. Got the new gal, and is handwritten business check exceeding 10k.
$5,525 seems like an odd limit anyhow.

So onto the part that doesn't make much sense. Pretty well all electronic now. Hell, you can mobile deposit and no bank ever receives a physical in hand check.
So, the 5,525 becomes available after 2 days, and the remainder after 5. But I do believe last hold I ever had, couple days, full amount cleared anyway.
I would imagine funds have been verified from issuing bank to release the initial amount(or is that the max they can put you on the hook for if you withdrawal and whatever goes south with issuing bank).
But period, 5 business days to hold a remainder if they stuck to the document terms even if funds fully cleared? What's up with that in this electronic age?
Though I'm sure funds will just show in full as have before, it just seems strange.

I am not in banking, nor did I stay at a Holiday Express.

 

[Superfly]

Been a while since I've had a deposit put on a hold. Not pressed, but just trying to make sense of it.
I know I've had total deposits into my biz account exceeding their stated limit (5,525)with no hold. Just had to clear. (No, not enough in there to cover).
Think partially, may have to do with usually, someone known me forever and have seen the checks before from payers. Got the new gal, and is handwritten business check exceeding 10k.
$5,525 seems like an odd limit anyhow.

So onto the part that doesn't make much sense. Pretty well all electronic now. Hell, you can mobile deposit and no bank ever receives a physical in hand check.
So, the 5,525 becomes available after 2 days, and the remainder after 5. But I do believe last hold I ever had, couple days, full amount cleared anyway.
I would imagine funds have been verified from issuing bank to release the initial amount(or is that the max they can put you on the hook for if you withdrawal and whatever goes south with issuing bank).
But period, 5 business days to hold a remainder if they stuck to the document terms even if funds fully cleared? What's up with that in this electronic age?
Though I'm sure funds will just show in full as have before, it just seems strange.

I am not in banking, nor did I stay at a Holiday Express.

I have two banks. One is Navy Federal. That’s my main bank. All my direct deposits go in there and all my bills are auto drafted out of there. They have a $250 initial amount released at midnight, and usually the remainder is released on the 2nd night.

My second bank is Redstone Federal Credit Union. I bank with them locally because there isn’t a Navy Fed anywhere within 3 hours of me. I use RFCU for local banking, cash deposits, etc.

When I sold my house, I tried to deposit my check into my account. Navy Fed said they had a $50,000 a day limit on mobile deposits. I went to my local bank and they said 15 business days. 15 business days drawn on a check from the closing attorney’s office.

Banks are different, obviously. Navy Fed ended up releasing the daily amount of mobile deposits for me so I could deposit my check, but even then, it was available on the 2nd night.

Maybe the new clerk inputted it wrong or something? Have you called the bank?

 

[Stealers Wheel]

Been a while since I've had a deposit put on a hold. Not pressed, but just trying to make sense of it.
I know I've had total deposits into my biz account exceeding their stated limit (5,525)with no hold. Just had to clear. (No, not enough in there to cover).
Think partially, may have to do with usually, someone known me forever and have seen the checks before from payers. Got the new gal, and is handwritten business check exceeding 10k.
$5,525 seems like an odd limit anyhow.

So onto the part that doesn't make much sense. Pretty well all electronic now. Hell, you can mobile deposit and no bank ever receives a physical in hand check.
So, the 5,525 becomes available after 2 days, and the remainder after 5. But I do believe last hold I ever had, couple days, full amount cleared anyway.
I would imagine funds have been verified from issuing bank to release the initial amount(or is that the max they can put you on the hook for if you withdrawal and whatever goes south with issuing bank).
But period, 5 business days to hold a remainder if they stuck to the document terms even if funds fully cleared? What's up with that in this electronic age?
Though I'm sure funds will just show in full as have before, it just seems strange.

I am not in banking, nor did I stay at a Holiday Express.

The bank is taking advantage of something called the 'float.' The time between when a check hits the deposit and the time the money is available to you that money is somewhere earning interest. That interest for 5 days may not seem like much, but if you multiply it by a million daily deposits, it adds up, and the bank gets all that. If you object, your bank may decide you're a good enough customer to stop doing it to you. Or you may need to shop around for a nicer bank.

 

[Checkerboard Strangler]

Simple...the bank holds allow them to scoop up some extra interest money, that's all.

 

[Chock Full o Nuts]

Maybe the new clerk inputted it wrong or something? Have you called the bank?

Eh, as I said, not pressed. Just be paying out a chunk anyhow.
Just seems crazy these days. The funds are there, or they're not..
It doesn't take 5 days to do shit anymore.

Remember years ago at old employer(of course not the same system as today tech wise) you couldn't get shit until next day.
And it was deposited at the same bank/branch that the businesses account was with!
You can pull up their account right here and now with your institution and verify funds!
**** 5/3rd.

 

[Chock Full o Nuts]

The bank is taking advantage of something called the 'float.' The time between when a check hits the deposit and the time the money is available to you that money is somewhere earning interest. That interest for 5 days may not seem like much, but if you multiply it by a million daily deposits, it adds up, and the bank gets all that. If you object, your bank may decide you're a good enough customer to stop doing it to you. Or you may need to shop around for a nicer bank.

Simple...the bank holds allow them to scoop up some extra interest money, that's all.

Exactly where my brain had wandered at a point. Pad that closing balance.
Banks 'bank' on that I know.

But like I said, IIRC, any large amount cleared in a day or two with my bank. I could yank it all..
Guess they are hoping you say "paper said so!", and let it ride to their advantage.

 

[Superfly]

Eh, as I said, not pressed. Just be paying out a chunk anyhow.
Just seems crazy these days. The funds are there, or they're not..
It doesn't take 5 days to do shit anymore.

Remember years ago at old employer(of course not the same system as today tech wise) you couldn't get shit until next day.
And it was deposited at the same bank/branch that the businesses account was with!
You can pull up their account right here and now with your institution and verify funds!
**** 5/3rd.

I sold my house in a town 3 hours away from where I currently live. I had to be at the lawyers office to close, so we left the house at 6 am to get there at the 9 am closing. The check was drawn off a bank a mile down the street. We thought, “that’s easy! Just go cash the check there!”

They wouldn’t cash their own ****ing check because we didn’t have an account with them. They wouldn’t let me open an account because it was a local bank and I was no longer local.

****ing nightmare.

 

[Chock Full o Nuts]

I sold my house in a town 3 hours away from where I currently live. I had to be at the lawyers office to close, so we left the house at 6 am to get there at the 9 am closing. The check was drawn off a bank a mile down the street. We thought, “that’s easy! Just go cash the check there!”

They wouldn’t cash their own ****ing check because we didn’t have an account with them. They wouldn’t let me open an account because it was a local bank and I was no longer local.

****ing nightmare.

Damn, worst I ever dealt with  long ago was a bank ganking me for 10 bucks to cash their check, at their bank, from their customers funds. DFW?..

 

[Superfly]

Damn, worst I ever dealt with  long ago was a bank ganking me for 10 bucks to cash their check, at their bank, from their customers funds. DFW?..

I agree that it’s getting harder, rather than easier, these days. Everything is digital so it should be easier.

 

[Chock Full o Nuts]

I agree that it’s getting harder, rather than easier, these days. Everything is digital so it should be easier.

Well, it's not really harder. No pen, check, envelope, stamp..

I waited 6-8 weeks for a Ghostbusters glow in the dark Frisbee with UPC in the early 80s.
My first mail! (Checks box)
I was hoping on some legit reason for the situation, but it appears likely 'hold on, for one more day! Hold on!' for profit.