Banking Question

[[AK]Nuts]

I deposited a check fro about 12k into my bank yesterday. BoA will make about $5k available on the 4th and the rest around the 8th or so. Now what I want to know is why the delay? One bank can talk to another, they can verify that the check is good? Do they do this just turn earn interest off my money? Why the hold up?


Also, I was told that there is a $600 cash withdraw limit per day. WTF?

[[AK]Clay]

Bank of America you say?

[[AK]Hylander]

I deposited a check fro about 12k into my bank yesterday. BoA will make about $5k available on the 4th and the rest around the 8th or so. Now what I want to know is why the delay? One bank can talk to another, they can verify that the check is good? Do they do this just turn earn interest off my money? Why the hold up?


Also, I was told that there is a $600 cash withdraw limit per day. WTF?

Unfortunately it doesn't work that way. More often than not, banks won't confirm availability of funds due to liability reasons. The length of time an institution will hold cash depends on the zone the check is drawn on, and it's own policies. (All within Reg CC Guidelines)

It has nothing to do with 'interest' really, with more and more money clearing in 24 hours electronically - it's not much of an issue. But, if I call today and the funds are there at the other bank - you could still withdraw the money later, you then have our banks money, and the money that was on deposit, and now we have to go after you to try and get the funds for the NFS check.

So to answer your question, it's all about minimizing losses due to NSF checks and fraudulent activity. (Unlike BoA and other commercial banks who are happy to repeatedly rape you for NSF Fees. We actually call every member if there are insufficient funds to give them the opportunity to bring funds in so they don't get a NSF Fee - unless they are on our do not call list of habitual bouncers.) Especially when they are for significant sums of cash. Even with today's Check 21 legislation, we scan the checks and send them to the Fed for electronic deposit. However, it still can be 24 - 48 hours before the Fed gets the non-sufficient funds notice back from the other institution and notifies us that the check is no good.

We make funds available immediately upon deposit, unless the check is for a certain dollar amount and above, and depending on the zone the check is drawn off from helps determine the hold time. Institutions can have shorter than required times, but they can never be longer than the Federal Guidelines which again, are dependent on the zone of the check. But also, an Institution can hold funds from withdrawal if it has a reasonable suspicion regarding the check.

As for the $600 cash withdrawal limit per day, are you referring to ATM access? Or is that in referring to the initial $5,000 they made available to you?

All this falls under Regulation CC, which you can read some guidelines at from the Federal Reserve.

[[AK]Hylander]

Bank of America you say?

He's lucky they didn't charge him the $35.00 StitchJones Fee which pays for the Blood, Breath, and Urine samples required in order to withdraw funds.

[[AK]Nuts]

The maximum in cash was at the teller. I was floored. Of course the teller looked like the lead singer from Flocks of Seagulls and I was at the grocery store version of their branch.

I understand the reasoning but still think its a scam. Two weeks is a joke and during that time someone is making money from my money. The issuing bank isn't going to send me the interest and BoA isn't either. It's not a lot, but you know that they do this kind of crap to all their customers... it adds up.

[[AK]Hylander]

The maximum in cash was at the teller. I was floored. Of course the teller looked like the lead singer from Flocks of Seagulls and I was at the grocery store version of their branch.

I understand the reasoning but still think its a scam. Two weeks is a joke and during that time someone is making money from my money. The issuing bank isn't going to send me the interest and BoA isn't either. It's not a lot, but you know that they do this kind of crap to all their customers... it adds up.

2 weeks sounds mighty long, even with all the holidays. Unfortunately, without having a copy of your Reg CC notice from BoA, it's a little hard to determine what their policies are. But doing a search on Google, it's not hard to find alot of complaints about their hold policies. But being so large, that isn't to be unexpected.

May I suggest you open an account at a good Credit Union?

[[AK]Rocks]

Also, over 10k falls into specials processing, its may be 5k now.. You can thank the terrorist for most of it..

http://www.federalreserve.gov/boardd...17/default.htm

[[AK]Hylander]

Also, over 10k falls into specials processing, its may be 5k now.. You can thank the terrorist for most of it..

http://www.federalreserve.gov/boardd...17/default.htm

I believe you are referring to CTRs, which only apply to currency - not checks. When it comes to checks, the financial institution may file a SAR (Suspicious Activity Report) when it suspects something - but it doesn't "have" to based on any particular amount of transactions. Even if it did, it has no bearing on hold times unless the institution decides there is 'reasonable cause' to put a longer than normal hold on the funds.

SARs are often filed when somebody thinks they are being clever by breaking up their deposits thinking it won't trigger a CTR filing. Not only will it probably be noticed by people at the institution - most institutions have software that detects 'structuring' of transactions. For instance, someone might think they can avoid a CTR by depositing $3,300 at the branch, $4,200 in the night drop, $1,500 at an ATM that accepts deposits, and then $1,000+ at a different branch.

None the less, all the above should have nothing to do with why they are holding his check for such a long period of time. I'm not sure we 'ever' held a check deposit for more than 5 or 7 business days - and that was due to suspicious nature of the deposit.

Per the Federal Reserve FI Guidelines:

Large deposits (greater than $5,000) — Any amount exceeding $5,000 may be held. Your institution must make the first $5,000 of the deposit available for withdrawal according to your availability policy and the remainder within the “reasonable” time frames discussed above.

So first, I would have to see the Reg CC and funds availability policy BoA gives on their accounts. I couldn't find one on their website. Although I found a nice little video on how to avoid holds by using direct deposits and ACH.

Here are the other 'conditions' for holds:

* Redeposited checks — May be held unless the check was returned because an endorsement was missing or because the check was postdated. In such a case, if the deficiency has been corrected, the check may not be held as a redeposited check.

* Deposits to accounts that are repeatedly overdrawn — An account may be considered repeatedly overdrawn and items may be held if
1. On six or more banking days during the previous six months the account had a negative balance, or would have had a negative balance had checks and charges been paid, or
2. On two or more banking days during the previous six months the account balance was negative in the amount of $5,000 or more, or would have been had checks and charges been paid.

* Reasonable cause to doubt the collectibility of a check — Doubtful collectibility may exist for postdated checks, checks dated more than six months earlier, and checks that the paying institution has said it will not honor. The general criterion for doubting collectibility is “the existence of facts that would cause a well-grounded belief in the mind of a reasonable person” that the check is uncollectible. The reason for your belief that the check is uncollectible must be included in your notice to the customer.

* Checks deposited during emergency conditions that are beyond the control of your institution — Such checks may be held until conditions permit you to provide availability of the funds. Examples of emergency conditions are natural disasters, communications malfunctions, and other situations that prevent your institution from processing checks as it normally does.

* Deposits into accounts of new customers (open for less than 30 days) — Next-day availability applies only to cash, electronic payments, and the first $5,000 of any other next-day items; the remaining amount from next-day items must be available by the ninth business day. You may choose any availability schedule for deposits of local, nonlocal, and on-us checks into the accounts of these new customers.

[[AK]Sonic Boom]

Gotta throw in my $.02 here.

When I started my company, I tried to make appointments with every bank I could find and held job interviews with them and asked, "Why should you be my banker?"

All the big banks didn't give me the time of day. I ended up with the smallest bank in Seattle. The President of the bank sat in on the meeting with my future loan officer.

I told them straight-out that I was a new and profitable business and wanted a road map to building good credit. They know how the game is played and I followed their advice. Things have been smooth sailing ever since.

Been with them for eleven years now and I still have the Prez on my speed dial. They've gotten larger over the years, but still treat me well. I don't plan on changing anytime soon.

Fu*k big banks. Go small. You'll be happier.

[[AK]Rocks]

Yes go smaller, that way Bank of America has someone to buy!

[[AK]Hylander]

Yes go smaller, that way Bank of America has someone to buy!

Yeah.. they need to find someone profitable to take over to make up for the 32.5% decline in net income last quarter when Bribo returned. He must have got quite an offer to return for it to hit profits that hard. Before you know it, he'll be spending like Squidly!

[[AK]Rocks]

32.5% decline in net income last quarter when Bribo returned

You notice that too.

[[AK]Bribo]

You notice that too.

I'm back just in time to be laid off!

[[AK]Hylander]

I'm back just in time to be laid off!

As I've said before.... the best job in banking is a sign maker.