10 Day Hold On Deposit - Posted by Don

Posted by Randy on August 06, 2003 at 17:49:01:

Believe it or not it?s true. The issuing bank can charge back ?Uncollected Funds?. This is true in personal, business and bank checks. The only true collected funds are cash and cashiers checks and of course money orders.

10 Day Hold On Deposit - Posted by Don

Posted by Don on August 06, 2003 at 17:38:36:

I got an explanation today for the hold on deposits. I always figured since a check usualy pays in one or two days there was absolutley no good reason for the hold.

Turns out that in the case of a bank check (not so with a personal check) a stop payment can be placed for thirty days, even if the check has been paid. If a stop occurs after the check has been paid the money still has to be returned!

Does that make sense or is this just some level employee giving me a line?


Re: 10 Day Hold On Deposit - Posted by Frank Chin

Posted by Frank Chin on August 08, 2003 at 10:14:15:

Hi Don:

I dealt with this issue through the years.

A year ago, I did a major refi, banked a six figure check, issued by “Greenpoint Bank” - and it was held for ten days by Citibank. The clerk was good enough to print me a clearing schedule when I made the deposit. It was from an out of state bank (issued from Delaware, and over $10,000.)

Fortunatley, I had nothing in the works where I was in need of the cash at the time.

Curious, I have since discussed this matter with three separate banks where I have accounts, including Citibank, Chase, Greenpoint Bank where I have several accounts each. I’m told I should’ve approached a bank officer, and have a special deposit slip issued so the funds would be available the next day.

Many years back, I was depositing a large tax refund check issued by the US Treasury, and the clerk refused it, and insisted that I have a bank officer initial it. It was at Citibank

I approached the bank officer and said the US Treasury check had to be initialed. He asked “Are you taking part out in cash today??”

I replied “No sir, only a deposit”.

Puzzled, the officer walked me over to the clerk and demanded to know why the check had to be initialed. As it turned out, the clerk was new, and she got confused with a procedure where certain checks, such as bank checks, can be made available the next day “if the check was initialed by the bank officer, and the deposit slip is marked -next day availability”.

I did learn something that day because I was told that while US Treasury checks have next day availabilty, have it initialed, and the deposit slip specially marked would insure next day availabily, or else it would be erroneously marked for 5 to 10 days availabilty if it is not so noted.

As for “stop payments” on Bank checks, I have heard of a situation where a stop payment was made on a Bank check immediately after a closing, where the bank check was the down payment.

How that ties in with check clearing times, I have no idea. It could be a rule made by one bank, or a misinformed bank officer.

Frank Chin