Bank Funds Availability Policies – Regulation CC

I took a big check to the bank yesterday and was worried that the bank would put a hold on my funds.  I had to pay tuition this week, so I needed access to the funds right away.  I was given $100 right away, but that left thousands still out of reach until the bank decided to give it to me.

I decided to look into the laws about holding funds, and thought you might appreciate a quick breakdown on Regulation CC, the Federal regulation on bank holds.

Regulation CC is the Federal Reserve rule created to enforce the Expedited Funds Availability Act of 1987.  Banks allowed to put a hold on personal bank accounts for one of several reasons.  The idea is to protect the bank from a loss if you withdraw the money and the check bounces.

The main holds are outlined below.  Information can be found at the Federal Reserve, though I found the chart below (from Wikipedia) to be the best explanation.  Remember, these are your rights.  If a bank violates the rules outlined below, they have committed a violation of law and should be held liable by the Federal Reserve.  If you think you have been wronged, or are being wronged, contact your bank first.  If that does not work, contact the Federal Reserve.