how long can a bank put a hold on our check over $50,000 in California?

Question

we deposited the check into our account. The check was issued by escrow company within California..
The bank said the money would not be available to us until 7 working days later. Is this legal?

Answer 1

The reason banks "hold" checks is to make money. While most checks clear within 24-48 hours, that money actually goes into their coffers until they "post" the money to your account. They then get to include it in their assets, and actually earn interest on it for the time they keep it from you.

Federal Regulations do allow some additional time for large checks to clear -but this isn't because somehow the money takes longer to move because there's more of it. It's because the banks have such a good lobby, and they got Congress to sign off on a way for them to make even MORE money!

Answer 2

7 days is legal, that is a federal law, that they must hold the money on the check, until it is verified. Once the money is verified, then the funds will be release. It may be sooner than 7 days but they have 7 days to hold it, until verification happens. Just so you know, this is not a bank policy, this is the federal government, also, it takes longer than 72 hours for a check to be verified. Please believe, I know, I worked in a town where everyone is a celeb with lots of money, or a really really rich person with lots of money, and I had to answer this question alot.

Answer 3

They have upto 30days to hold the check if they desire.

The funny thing is your bank will have the funds within 72 hours via ACH transfer from the Escrow issuer, but it will still take 7 days until your account can get to it.

Just call the branch that you dropped the check off to, explain that you really need them to release the funds as soon as the check is "funded", and they can manually go in and release the "Hold" once the check has funded.

Answer 4

Actually anything over $1,000 dollars can be held for up to 30 days if they want. Usually the bank doesn't do that. Anything from $10,000 up is held for 7 days but legally they can hold any thing for up to 30days. Also if you have money in an account they can refuse to give you any amount of funds for up to 30 days. Most banks do not do this because it is bad for business. But they do have the right to do so especially with large amounts such as $50,000.

Answer 5

yes, bank with high amounts like this are allowed to hold it. they need to verify the funds of the check are good. Some banks hold even government checks for that long for much less of an amount.

Answer 6

Sure is !! Banks set their own policies when it comes to that and they can do pretty much anything they want to do for as long as they want. There are no laws that keep them from doing it that i know of.

Answer 7

50 or more takes up to 7 days! but, you might have a certain amount availabe before it clears!