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Bank Funds Availability Policies – Regulation CC

June 30, 2009 by Eric Rosenberg

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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.

Hold Type Necessary Requirements Local Availability Non-Local Availability
Statutory No other hold applies, can be placed almost anytime. $100 1st Business Day Following Deposit, Remainder 2nd Business Day $100 1st Business Day Following Deposit, Remainder 5th Business Day
Large Deposit Aggregate total of checks deposited into one account on one business day is greater than $5000.00. $100 1st Business Day Following Deposit, $4900 2nd Business Day, Remainder 5th Business Day $100 1st Business Day Following Deposit, $4900 5th Business Day, Remainder 9-11th Business Day
New Account The account being deposited into has been open for less than 30 days. 11th Business Day 11th Business Day
Exception
Account has been overdrawn for six or more business days of the previous six months. (NSF Hold)
Account has been overdrawn for two or more business days in excess of $5000 in the previous six months. (NSF Hold)
The depository bank has reason to doubt the check is good. (The paying bank indicates the check will not clear, is suspected to be fraudulent, or is either post dated or stale dated.)
The item being deposited is a legal copy of an item previously returned for NSF (an IRD).
Item is accepted for deposit during a power outage or computer failure. (Extremely Rare)
7th Business Day 11th Business Day

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Filed Under: Banking

About Eric Rosenberg

Eric is the founder and editor of Personal Profitability. He left his corporate finance job in 2016 to take his online side hustle full-time and now earns a six-figure online income.

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I started a little side hustle blog in 2008, and left my full-time day job as a Senior Financial Analyst to turn my side hustle into a full-time gig. Learn how I did it so you can build your side hustle. It all starts with the first dollar.

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