Money is money — but deposits are not all the same — at least from the perspective of your bank. In fact, depending on the type of deposited item, it may qualify for next-day fund availability or be delayed for an extended period of time.
The time that banks and credit unions are allowed to hold your deposits is controlled under the stipulations of Regulation CC. Depending on the circumstances, the financial institution may hold the fund for up to nine business days after the deposit has been made.
It’s not all bad news, though — many deposits qualify for expedited availability at banks and credit unions.
For the following types of deposits, the usual hold time of your money will be available by the next business day. For holds on riskier deposits like Large Deposit and New Account Hold, the Expedited Funds Availability Act requires the minimum of the first $5,000 to be available by the first business day.
Low-risk deposits that qualify for next-day fund availability:
- Postal money orders
- U.S. Treasury checks
- Cashier’s checks, certified checks, and teller’s checks
- Federal Reserve Bank checks, Federal Home
- Loan Bank checks
- Government checks (federal, state, and local)
- Any check drawn from another account at the depository institution.
- Any check that amounts to less than $200
- Electronic payments, such as wire transfers, ACH credits, and pre-authorized payments (e.g., direct deposits of Social Security benefits and payroll payments)
To ensure the next-day fund availability, the deposit must be made into the payee’s account.
Some banks may have special deposit slips or envelopes required for next-day availability of your deposit. Make sure to check with your bank or credit union.
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Theresa is a research analyst at MyBankTracker.com. She is an expert in bank fees and policies, money psychology and consumer spending.