![]() ![]() If the check you deposited ends up getting returned because the payer had insufficient funds, your bank would have to cover those payments. Without a hold, you could write checks, pay bills or make purchases with your debit card against your balance. Placing a hold on those deposited funds in the meantime allows the payment to clear your account. In other words, the bank wants to make sure that the deposit is good before giving you access to the money.ĭepending on the type of deposit involved, it can take several days for the money you deposit to be transferred from the payer’s bank to your bank. Why Do Banks Hold Funds?īanks can hold deposited funds for various reasons, but, in most cases, it’s to prevent any returned payments from your account. Many banks also make their funds availability policies accessible online. These policies are usually disclosed to you when opening your account initially. Under Regulation CC, the timing for when deposited funds will be available is usually based on the type of deposit, when you made it during the business day and, in some cases, the amount deposited.īanks then can use these guidelines to create and implement funds availability policies. Guidelines for disclosing funds availability policies to customers. ![]() Timing for making deposits available to customers.Specifically, Regulation CC covers two things: Federal Regulation CC (Reg CC for short) offers a framework for banks to use when setting their funds availability policies. Funds availability describes when you can access the money you deposit into a bank account. ![]()
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