You deposit a check into your bank account and expect the money to be there. Maybe you’re planning to pay rent, cover bills, or make a purchase. Then you check your balance and the funds aren’t available yet. What gives?
This is called a deposit hold, and it’s more common than most people realize. Let’s break down what deposit holds are, why banks use them, and how long you may need to wait before you can actually spend your money.
No finance background needed this is the plain-English version.
What Is a Deposit Hold?
A deposit hold happens when your bank temporarily limits access to money you’ve deposited. The funds may show up in your account balance, but you can’t withdraw or spend them right away.
Banks do this mainly with checks, because checks don’t clear instantly. Even though you handed the check to your bank today, it can take several business days for the money to fully transfer from the other bank.
Why Banks Place Holds on Deposits
1. Checks Take Time to Clear
When you deposit a check, your bank has to collect the money from the bank that issued it. If that check turns out to be fake or bounces due to insufficient funds, your bank could lose money if they already let you spend it.
2. It Protects You (Yes, Really)
If you spend money from a check that later bounces, the bank will take that money back and usually charge fees on top of it. A hold reduces the risk of you accidentally spending money you don’t truly have.
Real-life example:
Your friend writes you a $1,200 check. The bank releases the money immediately. You pay bills with it. Two weeks later, the check bounces. Now your account is negative, and you owe the bank the full amount plus fees.
What Is a Funds Availability Policy?
Every bank has a funds availability policy. This is a document that explains:
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How long deposits are held
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Which deposits clear faster
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When exceptions apply
Banks are required by federal law to give this information to customers, but most people don’t read it until they’re stuck waiting for funds.
You’ll usually find it:
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In your account agreement
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On the bank’s website
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Available at branch locations
Deposits That Are Usually Available Next Business Day
In many cases, banks release funds quickly often the very next business day. Common examples include:
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Cash deposited with a teller
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Cashier’s checks
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U.S. Treasury checks (like tax refunds)
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Social Security checks
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Checks for $200 or less
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Checks drawn from the same bank
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USPS money orders
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Direct deposits and wire transfers
Business days mean weekdays that are not holidays.
When Banks Can Hold Your Deposit Longer
Federal rules (Regulation CC) allow banks to delay access to funds in certain situations. These are often called exception holds.
Large Deposits Over $5,000
If you deposit more than $5,000 in checks in one day, the bank may release the first $5,000 quickly and hold the rest for several more business days.
Redeposited Checks
If a check bounced once and you deposit it again, expect a longer wait.
Frequently Overdrawn Accounts
If your account often goes negative, the bank may hold deposits longer to reduce risk.
Suspicious or Risky Checks
Banks may delay funds if:
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The check is dated in the future
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The check is over 60 days old
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There’s reason to believe it may not clear
Brand-New Accounts
Accounts open less than 30 days are considered higher risk. Checks deposited into new accounts can be held for up to nine business days, though some funds may still be released earlier.
How Long Is “Reasonable” for a Hold?
The law doesn’t give an exact number, but five business days is common. In rare cases, holds can last longer depending on the situation.
If your deposit is on hold, your bank must tell you:
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That a hold exists
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How long it will last
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The date the funds will be released
This information may appear on your receipt or in a notice sent afterward.
Watch Out for Deposit Cutoff Times
Timing matters more than people think.
If you deposit a check after your bank’s daily cutoff time (for example, after 5 p.m.), the bank may treat it as if it was deposited the next business day.
Mobile deposits and ATMs sometimes have later cutoff times but not always. If the money is urgent, ask a teller or customer service which option works best.
Tips to Get Your Money Faster
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Deposit checks earlier in the day
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Use direct deposit when possible
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Keep your account in good standing
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Ask the bank when funds will be available before spending
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Avoid accepting checks from people you don’t trust
When in doubt, talk to your bank. A quick question can save you overdraft fees and stress.
Frequently Asked Questions
Are banks required to share their funds availability rules?
Yes. Banks must provide this information before you open an account and make it accessible to existing customers.
How long can a bank legally hold a check?
Many checks must be available the next business day, but exceptions allow banks to hold funds sometimes up to five business days or longer in special cases.
When is cash deposited at an ATM available?
Cash deposited at an ATM is usually available by the second business day. Cash handed directly to a teller must be available by the next business day.
Bottom Line
Deposit holds aren’t random and they’re not personal. They’re part of how banks manage risk and protect both themselves and their customers. Knowing how funds availability works helps you plan better, avoid fees, and stay in control of your money.
Please take a look at this as well:
What Is Real-Time Gross Settlement (RTGS)?
