You may expect the money to be accessible immediately when you deposit a check or receive a direct deposit into your bank account but this may not always be the case.
While banks become more digital and tech-savvy, it may take up to several days for new funds to become available for cash withdrawal or write checks on.
It can be frustrating if your deposit does not appear when you expect it to be, and you need it to cover the expenses. Having a clear understanding of how deposits are processed and possible delays will help you understand why your deposit is still pending.
Understand the availability of funds Regulations
When you make a deposit to your bank, the bank may immediately or temporarily make the funds available for withdrawal, in accordance with the standard holding periods set out in the Expedited Funds Availability Act.
These hold times vary by type and amount of deposit. In general, banks must make available for withdrawal the funds from your deposit no later than the next business day after the day the bank received the money for the following deposits:
Cash deposits made in person
Wire transfers
Electronic payments (e.g., direct deposits like your paycheck)
Bank checks up to $200
Official government checks of up to $5,000 in value
Other ACH credit transfers
Keep in mind that the date of availability of funds for non-cash deposits is distinct from the date the payment is clear, or when the bank of the payee has successfully collected the funds from the bank of the payor.
For example, to have a check clear, your bank must send the electronic or paper check to a regional depository, after which it will go to the bank for payment by the check writer. If the check is good, the paying bank will send the payment and the check will be clear; otherwise, the bank will revert the check as unpaid, and your bank will debit your account for the amount of the fake check. The clearing process could take 10 days to complete.
While the payment is still pending, you're actually spending on credit, because if the payment is uncollectible, the bank can still claw it back.
Banks are required to provide customers with written notice of holding periods, so take the time to review your account agreement for details of the holds that apply to your deposits.
Be aware of your deposits' exception holds
Another reason your check or cash deposit may not appear as planned is that the bank places an exception hold on the funds, which allows it to hold the deposit for a period of time is longer than the standard holding periods established by the law.
Exceptions to the availability standard for next-day funds shall apply to certain types of deposits:
Redeposited checks or checks you deposit to new accounts or overdrawn accounts repeatedly
$5,000 deposits, or more
Deposits which the bank suspects can not collect
Deposits made under specific emergency conditions ( for example, a system malfunction at a bank)
Deposits made in cash, but not at a teller
The bank can extend the standing hold period by what it considers to be a "reasonable" timeframe when exception holds apply, which it will state in the account agreement. But in general, the date of availability of your funds will be delayed by:
Up to 5 extra days for most inspections
Up to eight additional days with checks over $5,000
An extra day for checks "on-us" (those deposited in and taken from the same bank)
An extra day in case of cash deposits not made at a teller
Up to six additional days for deposits to an ATM that your bank does not own
The reason for those delays is that banks consider these deposits to be risky. For example, the greater the value of a check, the greater the risk the bank would take if it were to give you full immediate access to the funds. But banks generally still guarantee next day availability for the first $200 of a large check, and often make it available at deposit time.
Know the cut-off for the business day
Banks consider the next day to be the next business day for the purpose of availability of next-day funds. However, most banks set a cutoff for what comprises the end of the business day, after which they switch to the next business day to determine the date of availability of your funds.
The business-day cutoff can usually be no earlier than 2 p.m. For bank deposits, or no earlier than midday, for off-site deposits. In such a case, if you were to make a deposit at 3 p.m., the next morning, your money would not show up for use, but rather the day after.
One reason banks do this is so they can send most of the day's work on to the processing center so they can handle it all by midnight. This may apply to inspections, too. When you deposit a check and the receipt says "next business day" or the date on the receipt is for the next day, this means that the check will not be debited from the payor's account until the next business day even though the paying bank received the money.
Once a bank has crossed to your next business day, this information will be printed on the receipt of your deposit. Some banks will change the ATMs first, which means that you can conclude a transaction on the same business day by going inside. You may also have a television that switches over the other, so it doesn't hurt to ask if anyone still needs the money faster on the same business day.
Banking Mix-up Monitor
At times, because of a mix-up with the bank, your deposit may not appear as planned. You can monitor your account daily for this purpose. You should show your account history when making a deposit, even if the money is not available for you immediately.
Sometimes a deposit can accidentally be placed to someone else's account in the wrong amount or in rare cases. If that happens, when you access your account online, you will see an improper account of the deposit — or not at all.
Contact the bank for more information and to fix the problem. You will be informed by your account agreement how long you need to inform the bank of the error. In general, you will be notified of any discrepancy on your account for 30 days from the declaration date.
Be sure to keep your deposit receipt until the deposit is clear in case of lack of proof. If you can not confirm your deposit, the bank may need to receive a back and forth copy of the payor's check and present it to the bank in order to solve the problem.
Contact the bank for more information and to fix the problem. You will be informed by your account agreement how long you need to inform the bank of the error. In general, you will be notified of any discrepancy on your account for 30 days from the declaration date.
Be sure to keep your deposit receipt until the deposit is clear in case of lack of proof. If you can not confirm your deposit, the bank may need to receive a back and forth copy of the payor's check and present it to the bank in order to solve the problem.