Answers about Funds Availability

I deposited a local check. When will my funds be available/released from the hold?

The distinction between local and non-local checks went away with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. Another change is the amount of the deposit that is generally made available. The first $200 is generally made available at the time of deposit, no longer the first $100.

Prior to 2010, a local check (drawn on banks located in the same check-processing region as the bank in which you made the deposit) had second business day availability and a non-local check (drawn on a paying bank located in a different check-processing region as the depository bank) had availability no longer than the fifth business day. However, in 2010 the Federal Reserve consolidated their check-processing regions into one location. The result is there is no longer a difference between a local and a non-local check.

All checks generally should have second business day availability. The bank does have the right to extend the hold if:

  • there is reasonable cause to believe the funds are uncollectible
  • the deposit is greater than $5,000
  • or your account is new

Generally, a national bank must make the first $200 from the deposit available – for either cash withdrawal or check writing purposes - at the start of the next business day.

For details, take a look at the account agreement you received when you opened the account—it explains the availability process.

January 2013