Answers about Funds Availability

I opened a new checking account, but the bank will not let me withdraw my funds immediately.

The Expedited Funds Availability Act sets special provisions for new account holders. When the bank is dealing with a new customer, it can hold onto some deposits longer.

An account is considered new for the first 30 calendar days after it was created.

The account would not be defined as new if:

  • each of the customers on the account had within the preceding 30 calendar days another established account at the bank; and
  • that account was opened for at least 30 calendar days.

Different financial institutions have different availability schedules.

  • Cash, wire transfers, and ACH credit transfers generally have next business day availability.
  • Official government checks (Treasury checks, state and local government checks) up to $5,000 also have next-day availability. However, the amount in excess of $5,000 might not be available until the ninth business day following the banking day on which the funds are deposited.
  • Each bank may establish its own policy for on-us checks (drawn on the bank), and local checks, as these do not have a specific business day availability for new accounts.

You may want to review the Account Agreement you received when you opened the account. It should contain details on the availability schedule.

August 2010