What are Uncollected Funds?
Uncollected funds are checks, money orders, and other financial instruments that have been deposited into a bank account, but have not yet been released by the issuing bank or institution. Typically, banks place some restrictions on the withdrawal of uncollected funds for a period of time. However, some banks will allow the client to withdraw a percentage of an uncollected fund bank deposit in certain instances. At the time of deposit, every check or financial instrument that is not currency can rightly be referred to as uncollected funds. While the customer’s account will be credited for the deposit as if the instruments were currency, the bank will often require a waiting period before the funds can be withdrawn. Depending on the circumstances, this waiting period can be less than twenty-four hours or as much as five business days. When depositing checks that are drawn on the same bank, the waiting period involved with uncollected funds is very short. This is because it is possible t
Uncollected funds consist of checks, money orders, demand drafts or similar items that require collection from the paying financial institution. For example, you deposit a check from another bank to your American Bank account. The deposit increases your current account balance, and American Bank requests the funds from the other bank. The amount of the check displays as Uncollected Funds in your account. Click on the Uncollected Funds button to view the deposit date, description and amount of items in your account that are currently uncollected. Please refer to American Bank’s Funds Availability Disclosure for more details.
