Check holds and banks/credit unions?

Question

Is there any bank out there that does not hold deposited checks? I just got charged a $30 fee and I'm ticked off. My account's balance was over $500. I wrote a check for $475... But apparently I didn't have enough money in my account to pay it because they were holding a portion of the check. They paid it anyway and charged me $30. I am so ticked off because I have the money in the account!

I have yet to find a bank/credit union that doesn't do this sort of stuff! I've liked my credit union for the most part.. it's better than others I've had. But this really made me angry.

Anyone care to share their experiences? Let me know if you have found a bank who doesn't pull this crap.

I know it's for their protection, etc, etc, etc. but geez.. If I rob them of some money, they can always sue me to get it back!

Answer 1

I'm surprised to read of this occurring with today's technology.

Bank America has not placed a hold on any deposit for at least the past three years, maybe longer.

When a deposit is made by check, they immediately verify the validity of the check amount for the account on which it is drawn, at any bank.
As soon as the validity is verified, a hold is placed on the funds of that bank account, and credit is immediately posted to the depositor's account, and funds are immediately available.

It acts the same as a purchase or debit from a merchant. When a purchase is approved electronically, the amount is placed as a pending transaction on the account. That amount is deducted from the account and posted as a pending transaction.

My advice to you is to visit your bank and protest the OD fee.
These are reversed in many cases.

Answer 2

A way to beat the system. I know this sounds trite, but it works every time. If you know that you are going to be pushing it if they might hold the check, then try this. Take the check and cash it. If you've been with the bank for a while they will usually do this despite not having enough to cover it. Example: You have a $200 check out and about to clear. Your paycheck is $400. You don't have but $100 in your account. When you go the bank, deposit 200 and get $200 cash. Then Deposit the cash. In most all cases cash is instant on the books. You may have to use different windows or go inside for the first half of the transaction, then through the drive thru on the second half. I know this is a little extra effort, but it work, is legal, you get your money deposited instantly, and you not out the overdraft fees. Hope this helps. I've been doing it for years when I know I'm in a bind. Good Luck

Answer 3

That is a very common practice. Can you arrange to have your paycheck direct deposited? That would solve your problem.

If you don't have enough money in your checking account to cover the deposit in case your paycheck bounces, they put a hold on it.

To get immediate access to a $500 deposit, you would need to have a balance of more than $500 BEFORE you make the deposit. You can ask your bank what their specific amount would be.

Sometimes, if you are a long-time account holder, there have never been problems with returned deposited items, and you are depositing a check from a well-known company they won't put a hold on the money. My bank does not, but I've been with them a few years now with no problems.

Answer 4

The benefit of going with a credit union is that they're member owned (i.e.- you) instead of being investor owned like a bank. They're non-profit, so they don't charge as many fees, and they usually have higher returns on investments because again, the money goes back to their members instead of to people that own stock. I honestly can't think of any benefit to going with a bank (although I've always been with a credit union, so maybe I'm missing something?). I hope that helps!

Answer 5

The only time the bank usually holds a check is if it is from out of state. Was yours? I am also at a community bank and they do not hold unless out of state. There are alot of scams going on these days and they are protecting you as well as themselves. Believe me, I was scammed for $3,000 and I am now paying it back. Not very happy with the situation..

Answer 6

Your bank might take away that charge, call
or go there and ask them if they would as you didn't know about needing a certain balance left. Banks have been known in certain circumstances to take this charge away. bettyk

Answer 7

yes they can but it cost a lot more than 30.00 to sue -- try in the future to not let your account get so low -- you should always have at least one month expenses in the account plus 5 more in some other liquid account.