Question by Marco G: How long does a bank hold a LARGE check?
I want to deposit a “Workers Comp. Insurance” check into my WACHOVIA Bank Account; how long will they hold it before clearing it? Will any funds be made available to me? The check is under 10K but more than 8K.
I want to know if it will clear before April 1st so I can beat the sales tax increase when I buy a car.
Thanks.
Know better? Leave your own answer in the comments!
per Regulation CC they will make the first $ 100 available to you right away. And may hold all or up to $ 5,000 of it for 5 business days and the rest of it for an additional 5 business days. It depends on where the check is coming from and where its being deposited. If the bank it comes from in in New York and you are in California then they will probably hold it for 10 days, but if you are in the same general area, then it might only be 5 days.
If you have compensating funds on deposit with your bank, for example, a similar amount on deposit in savings, they may give you immediate credit.
Another possibility is that they will consider the Workers Comp. check to be at low-risk for insufficient funds and they will give you immediate credit.
The only way to know for certain is to take the check to your bank and ask them if they will give you immediate credit (not hold the funds for collection). It may be helpful to speak to the manager or a supervisor.
It depends on your account, the source of funds, etc.
Read this guide from the fed:
http://www.federalreserve.gov/Pubs/regcc/regcc.htm
You won’t know 100% until you deposit it and your bank gives you the receipt. Do it in person.
Unfortunately, insurance company checks will probably trigger the maximum length hold time because they are not cashiers checks, are usually drawn out of state from you and they are sometimes adjusted or stop-paid by the insurance company. Banks don’t trust them so they place max holds.
Look at the bank the check is issued from and if the check is drawn from a local bank that you can walk in to, you can cash the check in person. Don’t walk around with so much cash for long, though.
my bank holds it for about 7 days.