Bank policy on large checks

[pepperbegs]

Hi,

A friend of mine had a sudden windfall of cash.

He went to the bank to deposit the money and they said that it wouldn't be available for at least two weeks.

Is this normal practice for a bank? It is in the vicinity of $200,000.00.

 

[mnewsham]

I just deposited $1.3k and it took 5 days to finally go through. $200k is a lot of money I can see 14 days not being unheard of.

 

[Atomic Playboy]

Seems reasonable on the bank's part. They need to verify the funds exist and the check is valid; they can't turn someone loose with 200k if it may be fraudulent.

 

[rudeguy]

10 business days is very normal

Can I hold $10k?

 

[Reliant]

I deposited a 30k check a few months ago. I got it in waves. 5K after a few days, and then full access after like 2 weeks?

 

[bearxor]

As noted, yes, totally normal.

 

[Sluggo]

You should have scanned it and told everyone it was your monthly paycheck, the fallout would have been tremendous.

 

[Fritzo]

I just deposited $1.3k and it took 5 days to finally go through. $200k is a lot of money I can see 14 days not being unheard of.

Yeah I had to wait 9 days for a $60000 deposit once.

I found that I can actually cash the check for cash on the spot though. Then I can deposit the cash and it shows up immediately. Stupid but it works.

 

[Nebor]

Amounts like that should be dealt with via EFT.

 

[Bignate603]

Amounts like that should be dealt with via EFT.

Yes, amounts like that usually are wired to your account. Most people don't like carrying around checks that large.

 

[TastesLikeChicken]

I would think that amount of cash is going to be looked at by certain government agencies so the bank has to wait to get clearances from them before they can make the money available.

 

[dr150]

My bank does a 7 day hold on paper checks of $5000+

 

[Leros]

I had a similar experience in the past with a $70k check (this was for a business, not me personally)

 

[Greenman]

I go through it all the time. Complete a project, get paid, and wait two weeks for my money. You'd think after doing this for 26 years at the same bank and never once depositing a bad check I'd get a break, but you'd be wrong.

I given up being pleasant.

 

[sdifox]

Worse thing is even certified get held. At least up here in igloo nation.

 

[Scotteq]

It's normal - As pointed out, the banks (1) want to be sure the cheque is good, and (2) there are reporting requirements.

Recommendation: If you are in the fortunate position to expect this kind of thing with some regularity going forward, then ask for ACH transfers instead of a cheque. ACH takes a couple days - (i.e. Sent Tuesday, available Thursday) - and most banks do not charge for incoming transfers.

 

[alent1234]

a few years ago there was a rash of check fraud especially in used car sales. and the banks would give all the money to the customer right away and then have to take it back

so now they are being more strict

 

[Apple Of Sodom]

Totally normal. I get holds on large checks all the time. Now that the ladies at the bank know me and my business they will often override checks that are very large, but in general, expect holds on funds over a few thousand dollars. Each teller has a maximum amount they can release at my bank.

 

[Pantoot]

Is this normal practice for a bank?

Yes, and if the bank decides to hold the funds, the maximum length of the hold is going to be dictated by federal law.

http://www.federalreserve.gov/pubs/regcc/regcc.htm

 

[silverpig]

Yes it is normal. Typically, if the bank knows you, they may make a portion of it ($5k?) available immediately, but your friend will have to wait for the rest of the cash until the cheque clears.

So postpone the Vegas trip for 2 weeks.

 

[dust]

Yes it's normal, every employee at the bank has to personally count the money and take pictures with the pile, sometimes with their friends as well.

 

[DaWhim]

go to the bank where it was issued, cash it there. they should see the fund there and just debit it. i don't know why you need to wait for it to clear especially from the bank that issued it.

200k maybe a lot to some, i certainly don't think it is a lot of money to a bank.

 

[Genx87]

Dealing with a couple of insurance claims in the 30-40K range. I believe it took about 3-4 business days before the funds became available.

 

[mugs]

They just need to verify that your friend's long lost uncle's Nigerian friend is sending him legit money.

 

[alkemyst]

Yes it is normal. Typically, if the bank knows you, they may make a portion of it ($5k?) available immediately, but your friend will have to wait for the rest of the cash until the cheque clears.

So postpone the Vegas trip for 2 weeks.

QFT.

Ways around this is if that deposit was a 'normal transaction' for the account holder.

In my 20's, when I usually had between $1-2k in my checking account available...if I had a check for $10k; there would be a hold for up to 10 business days. Today, I usually have the full amount available to me at the time of deposit.

I am sure if I deposited $200k now, they'd give me at most $5-10k until the full check clears and is fully verified.