<p>S is using Wells Fargo Bank at school. For the second time, he has deposited a check and they say they’ll release the funds in 2 weeks. Both were large checks (about $1,000). 2 weeks? How are they delivering these checks, parcel post? It sounds to me like a way for them to make interest on his money for 2 weeks. He went to the bank to talk to someone about it and they pretty much said, “yeah, it stinks, but that’s how it is.” Does anyone know what’s going on here?</p>
<p>are they personal checks?
I know that it can take " a week to 10 days- * business days*", for checks if they are personal, depending on the bank they are drawn on.
Our account at the credit union deposits business checks immediately, but holds most in reserve for 24 hours.</p>
<p>The check he deposited today was from an insurance company. The last one was one he wrote to himself from his account back home, so yes, it was a personal check. Still…that’s all done by computer. How long could it take? The funds from the check he deposited today will be available 9/16.</p>
<p>I work for a bank and the time frames for Holds on checks are determined by banking regulation, not by the bank. The type of check and some other factors decide how long. I’m sure someone at the branch can explain exactly why the hold is for a particular time frame.</p>
<p>Some banks and credit unions choose to do less than the regulation. They are free to do so since it benefits the consumer. What banks may not do is exceed the regulation. If notice was not provided at the time of the deposit, the bank MAY be required to reverse any overdraft fees incurred on his account.</p>
<p>I hope this was helpful.</p>
<p>Thanks for the info. Fortunately, S says he shouldn’t have any problem with overdrafts. He might have a case if he did, though. He deposited the check through the ATM, and after it took it, the machine told him the funds would be available 9/16. So, he couldn’t get it back.</p>
<p>Anyway…it just seems so odd!</p>
<p>What Wells Fargo is doing is excessive.<br>
[A</a> Guide to Regulation CC Compliance](<a href=“http://www.federalreserve.gov/Pubs/regcc/regcc.htm]A”>A Guide to Regulation CC Compliance)</p>
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<p>Large checks are anything over 5000, not 1000. With my acct (granted it is a premier acct), checks I deposit are usually available to me next day. Banks get their money electronically, this is just another way for them to make some money of it.</p>
<p>Is your son’s acct new? They may be able to hold his deposits longer if that’s the case.</p>
<p>We use Charter One. Have never had them hold funds that long. They also just started something where I can transfer funds from my Charter One account to another customer’s Charter One account and the funds are available immediately. Great idea for sending your kids money away at school. In our case, we pay our employees that way. </p>
<p>Is there another bank at school your son could use? That one doesn’t sound very friendly.</p>
<p>When our D started school in NYC, she put all her money in CitiBank and then discovered it wouldn’t be available for a week. Annoying as anything, esp. since she was trying to buy books for the first week of school.</p>
<p>Then we tried to wire her money (bank to bank) and learned THAT would take at least 5 days. Huh???</p>
<p>The last straw was when we attempted to send her a check FedEx, and that was the day the new driver missed the pickup box and didn’t take our envelope…gah!</p>
<p>I am sure banks are making money on these policies.</p>
<p>D had an account with Wachovia- now Wells Fargo/Wachovia for several years. As she headed off to college, we changed it to a checking- and lo and behold it is now a new account. For 6 months. That’s not something we expected.</p>
<p>My Ds bank – new account – gives 24 hour access to less than $100, rest on hold. Not certain how long, but she doesnt go so 100 so quickly its a problem. When I set her up at school, I brought cash for initial deposit.</p>
<p>^ Same at our bank. The first $100 of any deposit is available immediately. The rest can usually be accessed within two days. I’m more appreciative of their generous policy after hearing about Wells Fargo.</p>
<p>DS banks at BofA if he takes an out of state check in they hold it for a few days but give him the 100 immediately. If I go to a BofA here in my state and deposit it in his account the hold seems to be much faster to clear. Usually clears the next day.</p>
<p>We deposit into B of A accounts by check here too. If I deposit on a Saturday, the funds are available by Tuesday. My deposits are typically under $1000 (they are for rent/utilities/food). </p>
<p>My own bank (not B of A) allows me access to funds immediately…but that’s because I have a HUGE amount of money in various accounts with them. They know they can GET their money if my deposited checks bounce!!</p>
<p>2 weeks sounds quite excessive. There is generally a set process in place for procedures that need to take place for the funds to clear and that typically takes a few days. If the cheque comes from your own bank they will typically credit the funds right away (up to a certain amount) and sometimes they will do this for other banks… but they’re taking a slight risk here that the cheque could be bogus. </p>
<p>I would challenge the bank on these excessive periods. Unless they have a real reason to believe the cheque is a fake then there is no excuse. In fact, many banks play games with such ‘waiting periods’ by not paying interest on the money before giving it to you. Sure the interest collected on a few bucks here and there for a few days dosen’t seem like much, but multiplied across all the cheques they process each year that’s a lot of ‘free’ money for the bank. </p>
<p>If the bank won’t change it’s practice, find another bank.</p>
<p>Here’s an explanation I found that clarifies things a bit:</p>
<p>"There is a federal law, the Expedited Funds Availability Act. When a law such as this is enacted, there is a banking regulation that implements it and tells the bankers more precisely what they have to do, how to do it, and what options they have in meeting these requirements.</p>
<p>In the case of this requirement, Regulation CC, banks can put holds on items deposited into a checking account. Your bank provided you with a Funds Availability Policy (although it could have been named differently) when you opened your checking account. You are always free to request another one as well. Because there are various options available to the bank on the hold periods they use, I will say that they can provide access the very next day or up to eleven business days from the date of deposit.</p>
<p>You can ask when you make a deposit how long it will be on hold. In some cases the bank will tell you immediately or will mail a notice when they are placing what is known as a “case by case hold” on the deposit. This depends on what checks in your deposit are defined as local, non-local and what items are defined as next-day available items. It also depends on the size of the deposit and how long your account has been open. This is a very difficult banking regulation to follow and to describe briefly. The defined terms themselves go from ‘(a) account’ to ‘(fff) Remotely created check.’"</p>
<p>(And yet it seems when I write a check to anyone, anywhere, it clears against my account almost instantaneously!)</p>
<p>The bottom line seems to be that you should inquire about the Funds Availability Policy at Wells Fargo and some other nearby banks and see if it’s worth switching.</p>
<p><a href=“And%20yet%20it%20seems%20when%20I%20write%20a%20check%20to%20anyone,%20anywhere,%20it%20clears%20against%20my%20account%20almost%20instantaneously!”>quote</a>
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<p>EXACTLY!!! This is what pi$$e$ me off more than anything. They put holds on deposits into your account, but when you write a check to someone, it clears within a day or two (much quicker than it used to) thanks to electronic banking.</p>
<p>Timely your post got me curious. I deposited 2 checks into my son’s Wells Fargo checking account last sat. The transaction was recorded on Monday the next business day the 31st, as of today the 5th the funds are already available for use or withdrawal. One of the checks was a personal check from me drawn on another bank. The other was a paycheck from his summer job that was also drawn on another bank. We have not had any problem with Wells Fargo or the local bank I use with funds being held. On the other hand one of my kids moved to another state and has an account at BofA. We have found with them that they do hold funds. If I need to get her money quickly I usually get cash from my local bank and go to BofA in my town and do a cash deposit.
He might also check his account online and see if the funds are available earlier. Possibly the 2 weeks is on the outside edge of when they would be available.</p>
<p>Same thing happened to me when I moved to NC and I nearly had a stroke. Opened a new local account at Bank of America with a check drawn on my NJ Chase Bank. Because I was a new account they put a lengthy hold on my large check. So 2 days later, B of A has my money, Chase does not have my money, and I don’t have access to my money! This is not a way to inspire confidence in the US banking system! The one thing that will destroy our banking system is a lack of confidence and restricting access to our own money. Just to be safe we will all keep cash under our mattress. </p>
<p>So after a conference with the local B of A branch manager, she actually called my NJ Chase branch manager and the hold was lifted and I was able to pay my movers (remember they need a certified check to deliver your household goods) and painters. </p>
<p>Now that we have been here a year and I guess we are “good” customers, we noticed that we were given immediate availability on a $5,000 check from a closed brokerage account. Once they get to know you I guess they treat you ok, but it appears they treat students like crap no matter how long the relationship. </p>
<p>It drives me nuts that they even think of putting a 2 week hold on a check they can easily verify, yet banks still permit their customers to be defrauded by counterfeit certified checks.</p>
<p>I haven’t been in banking for a long time, but I did notice you said the check was from an insurance company. Back when I worled in banking insurance companies often issued something that looks just like a check, but it is called a bank draft, that required special handling and was not paid quickly like checks are. But I believe you also said he made his deposit at an ATM, where they would have no idea whether that was the case or not. Perhaps they assume anything deposited is from out of state, and place a maximum hold.</p>
<p>It’s better to go into the branch and make a deposit in person where you can try to dispute a long hold if necessary.</p>
<p>Sorry this happened though. I didn’t realize banks could even still place a 2 week hold on checks.</p>
<ol>
<li>Patriot Act mandated that banks know their customers. And enable the domestic agencies to due their mandates.</li>
<li>Money Laundry. (no starch) </li>
<li>Float</li>
</ol>
<p>most of the reason for holds are because of 1. Never deposit a check into an ATM because the hold is almost mandatory. A deposit in person at your bank, has a minimum hold.</p>