Why do Banks Hold Checks?
When you deposit a check into a bank, a waiting period is usually assessed. This waiting period, sometimes called a clearing period, is the length of time the bank will hold checks in order to assess whether or not the funds are available. There are also a few other reasons why a bank may hold checks before making the cash available. A few different factors influence the waiting time for a check deposited into your account. Where the check comes from is one such factor. Checks are classified by the bank as either local or non local. Banks hold checks for specific periods of time based on this designation. Checks are designated as local when they are deposited within a bank’s geographical region. This specified region can include many different areas within the state where the bank is located. Banks are allowed to hold checks that are locally deposited for one day. After a local check has been deposited, the funds should be available by the morning of the second business day. The bank s
When you deposit a check into a bank, a waiting period is usually assessed. This waiting period, sometimes called a clearing period, is the length of time the bank will hold checks in order to assess whether or not the funds are available. There are also a few other reasons why a bank may hold checks before making the cash available. A few different factors influence the waiting time for a check deposited into your account. Where the check comes from is one such factor. Checks are classified by the bank as either local or non local. Banks hold checks for specific periods of time based on this designation. Checks are designated as local when they are deposited within a bank’s geographical region. This specified region can include many different areas within the state where the bank is located. Banks are allowed to hold checks that are locally deposited for one day. After a local check has been deposited, the funds should be available by the morning of the second business day. The bank s
