bank rules?

Question

is it normal practice for a bank to split up the deposit of a large check into an account?

Answer 1

Yes, that put a hold on the majority of the check because the don't have a long relationship with you as a customer or because they aren't sure about the company/person who issued the check.

They will give you $100 dollars the day you deposit it, another amount after 3 days, more after 5 days and it will be clear after 7 days and you can have the total amount.

This has happened to me a number of times with my business because we were small and new and the bank was trying to avoid the hassle of me writing checks based on the deposit... if the check I deposited didn't clear, then all my issued checks would bounce costing everyone time and money.

It sucks, but eventually they will know that this is common for you and they won't put a hold on the check or this is just a one time thing and only a few days of inconvenience.

Answer 2

No....it's actually prohibited. However, what you may be experiencing is that the bank is placing a hold(s) on a portion(s) of your deposit which means that part(s) of your deposit may become available for you to withdraw at different intervals depending on the dollar amount of the item being deposited. This is not the same thing as splitting up a deposit. Holds are used by banks to allow sufficient time for the bank to collect on the funds from the issuing bank prior to providing you access. Banks are requried to abide by strict regulations on the maximum amount of time they can hold funds and are required by law to disclose to you what funds are being held and when they will become available.