How can one bank continue to hold funds when evidence shows a check has cleared the bank it's written on?

Question

Isn't this double dipping? The bank doing the hold gets interest on deposited funds. They collect interest on my funds while I cannot use my funds because of their continuing hold of 5 business days. Report them to the Federal Reserve Bank and let's stop them.

Answer 1

Most banks have a time period that they hold funds on deposited checks. There wouldn't be any practical way for them to follow each check that's deposited and release the funds when it clears.

The time period they are allowed to hold checks is limited, and they have to let you know what it is. They often post signs with the hold times.

Report them to the Federal Reserve? For what? They're following the law.

Answer 2

Yeah right have u ever worked at a bank???? lots of cheques get returned generally checks from the sam city/even within a 200 km radius clear the same night you deposit them but people can stop payment on them and dispute them, as a bank teller we only hold funds if you have a poor credit history or insufficient funds in your account to clear the cheque if it were to come back if banks didn't hold cheques they would lose billions a year!!!!