Understanding Bank Holds: Why is the Bank Holding Your Money?

Banks have many rules that have an affect on your money. One of their rules, holds, can affect the way that you run your finances on a day-to-day basis. It is very important to know why banks have holds in place and what to expect if you are told that a check you are depositing into your account must be held. Also, tips for getting the bank not to hold your check.

What is a hold?

Banks use holds to ensure that the check you are depositing is good. In other words, that the account the check is written out of has enough money to pay the amount that the check is written for. The bank deposits the check into your account, but they do not allow you access to the funds. The lengths of the holds usually range from 2-11 days depending on the circumstances.

Reasons a hold is placed

You do not have the amount of money the check is written for in your account. Banks usually require that a person have at least the amount of money the check is written for in their account to cover the check if it is returned. In this instance, if this is the only circumstance and you are in general a customer in good standing, you can usually expect a shorter hold time.

You have a history of depositing checks the return or you have overdrawn your account several times.

Your account is new and you have not had time to show the bank that you are a responsible customer.

The check you are depositing is for an extremely large amount and your bank is not familiar with the bank the check is written on.

Some solutions for getting a bank not to hold your money

If a teller tells you that your check must be held, ask for the exact reason why. Then, ask to speak to the branch manager and explain your situation. (Do not bother arguing with the teller because more likely than not she can do anything to help you without the approval of the branch manager.) If you know that your account is in horrible standing, then do not waste your time. They are probably not going to be able to justify lifting a hold. However, if you are a good customer that rarely overdraws your account, and the only problem is that you do not have the amount in your account that the check is written for, then there is a case to be made.

Make sure that you let them know that you are really counting on the immediate use of this money (who isn't in need of every dime they earn) and be sure not to be rude. Losing your temper will get you nowhere. Bank employees have people lose their tempers with them all the time and they are not shaken by it, only annoyed. So, keep it cordial and people will be more apt to help you with your problems. If the branch manager cannot be found, because they can be elusive, ask to speak to an onsite customer service representative. They are often given decision-making power in the absence of the branch manager.

Another tip, if you have other monies with that bank let them know. They are not interested money you have elsewhere. Let them know that they have access to your money in the form of saving accounts, money market accounts, or CDs. This way if the check is returned and there is not enough money in your checking account to cover it, they can take the money from another one of your accounts.

Yet another tip, be sure to stress the amount of years that you have been a loyal customer that has always been in good standing, this gives you another quality of reliability.