check funds becoming available

pavulon · 07-06-2019, 11:04 AM

If funds from a check leave an account in bank A in state AA, how long does it take for those funds to become available at bank B in state BB? Seconds, minutes, days, ?? and what are the steps involved today?

biosurfer1 · 07-06-2019, 11:17 AM

My bank clears in 24 hours now, used to be longer.

masraum · 07-06-2019, 11:41 AM

depends upon the receiving bank.

I'd say that the funds change hands nearly instantaneously once the transfer is made.

I think it's not uncommon for the bank that cashed/deposited the check to have a "hold period" on checks over some amount the first time or two they are deposited. I think the hold can be anywhere from a day to several days depending upon the bank.

Someone at bank B should be able to advise the person with the account at bank B how long the hold period is and what the factors are for hold periods.

GH85Carrera · GH85Carrera's Garage

In 2019, good question.

Long ago (early 1980s) I walked into my own bank with a US Government check from the IRS for my tax refund. It was a bank that I had my account at, with funds in the account. The check was more than my balance at the time and I wanted them to cash it so I could go pay some bills that were due. They refused to cash it, all I could do is deposit it, and then they told me it would have a hold on it for several days before I had access to the funds. I told them if that check bounces, we are all screwed and the cash I want is worthless anyway. They did not budge.

I changed banks shortly after that. I am real gal I am not that broke anymore.

Eric Coffey · 07-06-2019, 12:43 PM

What's a check?

If practical, look into Zelle. It's like wiring money, but without any fees...and it's instant.
Most major banks now have it available through their website/app.

Arizona_928 · 07-07-2019, 01:29 AM

My local credit union will give it to you instantly.

I've had a Wells Fargo for 11 years or so. the tellers would only give you xx amount right away, and the ATM would give me double what the tellers offered me when I deposited check into the ATM. I'm talking few hundred dollars. Even if I deposit a Nigerian check. Doesn't it take weeks to verify?!

pavulon · 07-07-2019, 02:55 AM

I wrote a check for a decent sum of $$ which was deposited on a Friday and credited from my account on Monday. The recipient claims to have not seen it show up in her account until a full week had passed. She repeated a lame "size of the issuing bank" excuse supposedly offered by her bank. While I understand that money is more than electrons (save for crypto currencies) I would think that in this age of electronic banking, this is utter BS and am interested in what is going on behind the scenes. If it is possible to "wire" transfer money or Zelle, what happened to this money for a week?

KFC911 · 07-07-2019, 02:59 AM

Things have changed a bit but...

Banks have three different FED windows throughout the day, and when you are literally talking about tens of billions passing through each day....they hang on to it as long as they can

, with most of the "batch processing" ocurring overnight...back in the dark ages. Now many checks seem to be processed just like a debit card transaction when you hand the "store" a check....

Follow the money...though checks are dinos.....Walmart still wants that 2B in their account all day...and not in transit as the bank makes BIG $....timing is money. Now imagine if a huge part of the loot is via CC.....CHACHING fer the banks

.

Missing a FED window transfer by one minute....."somebody" eats the loss....it won't be the FED....usually....unless "I" could "prove" it was their fault...expen$ive finger pointing....

I used my middle one a few times too

It's BITCOIN x Trillions....trust us....suckers

Debit cards were the real game changer imo....

ian c2 · 07-07-2019, 03:15 AM

I’m with boa and iirc they used to give a percentage of check straight away .
I’ve not used the counter for a while so don’t know if they still do this .
These days I sign the check , open the boa app , take a pic front and back , and it’s done !

KFC911 · 07-07-2019, 03:47 AM

I've only used my CU (not "as" profit motivated as banks) for two decades...even they do it

. I once deposited a bigly check ftom a local bank....from my dad....he also has a CU acct., and a history there. I wanted a few K in my chk acct....right then. Teller said it would take mebbe ten daze....naw, I wanna talk to the CU mgr....I even have a bigly HELOC that would cover it...

Teller came back and started counting Franklins

No one wants to kill the golden goo$e....so banks give you a small % (their risk), and eat debit/CC losses, so the $heeple keep on grazing fer the cash cows....Moo(ve) to a CU

drkshdw · 07-07-2019, 03:59 AM

When I did get checks and walked into my bank (small local bank with maybe 10 locations) to cash them the funds were always available immediately for me. Not sure if it's still the case because it's been years since I've even touched a check. But the only time a check bounced they went after the bank it was drawn on and let me keep the funds while they went after it.

As for wires, I bought a car 2 weeks ago and wired the money to the seller and it showed up in his account by the time I got home. My bank (again, local that I've banked with for 20+ years) ate the fees because it didn't cost me anything.

KFC911 · 07-07-2019, 04:08 AM

They didn't "eat" the fees....they decided not to bend you over....cause yer a good customer....that's my story

. It's a trade-off....like most things...thing. Real-time verses the cost of handling/processing/ACH....

That's also why I was a systems guy playing with 10 million $ mainframes...always needing a faster one

I hate banks....loved what I did

KFC911 · 06:35 AM

Transferring $ between two checking accts. at the same institution can now take 8 daze....

Nuthin' nefarious, no one making $....just the idiots who designed it

.

I will NOT name names....in order to protect the stoooopid

....

If'n ya don't understand...yer not alone....YMMV though....that is all

.

red-beard · red-beard's Garage

I just posted this in another thread. I just deposited a check from a client for $55K. 7 business day hold. I was given the check late on Friday (no way to deposit). Dropped it off on Saturday. They made $1K available immediately. $5K available after 2 business days and then the full amount after 7 business days. Total time was 12 calendar days from when I was given the check.

GH85Carrera · GH85Carrera's Garage

Quote:

Originally Posted by KC911

Transferring $ between two checking accts. at the same institution can now take 8 daze....

Nuthin' nefarious, no one making $....just the idiots who desigjn it

.

I will NOT name names....in order to protect the stoooopid

....

If'n ya don't understand...yer not alone....YMMV though....that is all

.

I have to use a bank, as credit unions are not for profit and will not do a business account. At my bank, if I transfer money from one account to the other between business entities, the funds leave one account and are instantly available at the other instantly.

cabmandone · cabmandone's Garage

Depends on the dollar amount. Some banks put a hold on large checks. My bank makes funds available next business day depending on the time and day it is deposited.

James,
I feel your pain. Part of why I left US Bank was because they did exactly as you describe. I could have more than 100K deposited and couldn't use it to pay down my line of credit. Part of why I went to wire transfer for large dollar amounts. Money appears same day. I'll even offer to pay the sender's wire fee. $20 to have my money same day is worth it to me.