if u deposit a out of state check how long does it take a bank find out if the check is good or not?

Question

if u deposit a out of state check how long does it take a bank find out if the check is good or not

Answer 1

distinction ... there is a difference between when you can use the money and when the bank actually KNOWS the check was good.


In the United States, banks are required by law to advance funds on out of state checks after a specificed period of time, usually three to five banking days [depends on where you are]. While a bank clerk might tell you that the check has then been 'collected', this is NOT the same as the bank KNOWING the check was good.


A bank KNOWS a check was good when it fails to come back bad, UNLESS the item was sent for 'collection' [an extra service for which there is a fee]. How long can an item come back bad? Two to three weeks for ordinary causes [insufficient funds, for example] and up to months for unusual causes like forged check, forged signature on stolen check, etc.


Legally, you are responsible for every check that you deposit or cash. If it comes back bad, it is your loss, not the bank's loss; UNLESS you specifically asked and paid for 'collection' service.


[yes, i know ...]


Moral: don't accept checks from strangers whom you haven't done business with before, unless it is in the ordinary course of your trade or business and for ordinary amounts.

If you sell something expensive on eBay, for example, use a payment service that guarantees the funds. There are way too many forged "Cashier's Checks", for example, out there looking for some pigeon to take them -- especially for more than the purchase amount.


does this clear matters up?

Answer 2

Call the bank and ask when the funds are availabe and and when the bank will actually have the funds. Until the bank actually has the funds you are at risk for the scam below. Caution: make sure that the bank has the cash before you write any checks against it or give the money to someone else. Its a big scam these days to have you deposit a bogus check, give cash to some one, only later to find out your bank did not have the funds, You no longer have the cash, and the bank WILL get it back from you.

Answer 3

Check 21 requires the electronic truncation of checks...meaning they are imaged and sent to the federal reserve.

OK...this is why it takes 5 days (sometimes not always, local banks should clear in a day and you will understand why)

Day 1...You take your large dollar check to the bank teller who says she has to put a 5 bus day hold on the check. Said check is imaged by bank and sent to that bank's local federal reserve bank electronically.

Day 2...Federal reserve bank does their thing...if the check is local it is sent right to the local bank and clears that day...sending bank recieves money. A non local bank is a bank that doesn't use the same federal reserve branch as your bank. So the non local banks check is sent on to that banks federal reserve branch.

Day 3...transit time and processing time (non local feds can be across the country and takes time for the information and man power to catch up as well as time differences across the country mean one fed reserve bank can be noon and the other can be closed...

Day 4...Non local banks fed reserve branch recieves the check your bank sent and processes it.

Day 5...Non local bank recieves check and debits the money from account holder.

Lets say on day 5 there was no money in the account holders bank account. The process has to be reversed, there for it can take 10 days to 2 weeks for an NSF check that was drawn on a non local bank (rembering non local to a bank means they do not use the same fed reserve branch as your bank) it can take so long for you to find out about it.

This is quite a bit faster than it used to be...and it is why banks do not like that for a $5000 check they can only put a 5 bus day hold on the check, because it can take longer than that for them to find out the check is no good. And it is also why for checks larger than $5000 the government (reg CC) allows banks to put an extended hold on the check, or if the bank feels the check may be counterfit or fraudulent.

Hope this explination helps.

Answer 4

Usually 10 business days (14 calendar days).

Answer 5

7-10 days usually

Answer 6

Some banks hold your funds a week.

Answer 7

IN MY STATE, TEXAS IT IS 5 DAYS., BUT IF YOU HAVE THE FUNDS TO COVER IT, SOME BANKS WILL CASH IT IMMEDIATELY.

Answer 8

7-14 days, I think.