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Managing Editor, Global Data and Automation for Forbes Advisor. Mitch has more than a decade of experience as personal finance editor, writer and content strategist. Before joining Forbes Advisor, Mitch worked for several sites, including Bankrate, I.
Written ByManaging Editor, Global Data and Automation for Forbes Advisor. Mitch has more than a decade of experience as personal finance editor, writer and content strategist. Before joining Forbes Advisor, Mitch worked for several sites, including Bankrate, I.
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Doug Whiteman Personal Finance EditorDoug Whiteman is an award-winning journalist with three decades of experience covering personal finance, starting when he was the Washington, D.C.-based consumer news editor and reporter for Associated Press Radio in the 1990s and early 2000s. He's p.
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| Personal Finance Editor
Updated: Mar 31, 2022, 3:05pm
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Funds availability refers to when you can access money that you’ve deposited with your bank to pay bills, make purchases and cover everyday expenses. With some exceptions, money that you add to your checking account or savings account isn’t always available to use right away.
Federal regulations allow banks to hold deposited funds for a set period, meaning you can’t tap into that money until after the hold is lifted. But the bank can’t keep your money on hold indefinitely.
Federal law outlines rules for funds availability and how long a bank can hold deposited funds. Banks also can use their discretion when setting guidelines for making funds available to customers.
Here’s what you need to know about funds availability and how this works when making bank deposits.
Funds availability describes when you can access the money you deposit into a bank account. Federal Regulation CC (Reg CC for short) offers a framework for banks to use when setting their funds availability policies. Specifically, Regulation CC covers two things:
Under Regulation CC, the timing for when deposited funds will be available is usually based on the type of deposit, when you made it during the business day and, in some cases, the amount deposited.
Banks then can use these guidelines to create and implement funds availability policies. These policies are usually disclosed to you when opening your account initially. Many banks also make their funds availability policies accessible online.
Banks can hold deposited funds for various reasons, but, in most cases, it’s to prevent any returned payments from your account. In other words, the bank wants to make sure that the deposit is good before giving you access to the money.
Depending on the type of deposit involved, it can take several days for the money you deposit to be transferred from the payer’s bank to your bank. Placing a hold on those deposited funds in the meantime allows the payment to clear your account.
Without a hold, you could write checks, pay bills or make purchases with your debit card against your balance. If the check you deposited ends up getting returned because the payer had insufficient funds, your bank would have to cover those payments. And, as a side effect, you could be charged returned check or overdraft fees for any transactions the bank has to cover.
Funds availability holds protect you and the bank against the consequences of returned payments. Having your bank hold a check can work in your favor if it allows you to avoid overdrafts and their associated fees.
Banks hold checks to verify that the check will be paid. Anyone can write a check to you, but if there isn’t sufficient money in their account, the check will bounce. As mentioned above, this can create headaches for both you and the bank, especially if you’ve used funds from a bounced check to pay bills or make purchases.
Checks get special treatment compared to other types of funds because there’s a degree of uncertainty surrounding them. With checks, institutions don’t know if the check is collectible until it’s paid by the institution it’s written from. This is unlike some other deposit methods. For example, if you’re depositing $5,000 in cash, the bank has money in hand to credit to your account. And wire transfers are typically irreversible—the person who sent the transfer typically can’t get the money back, so your bank can credit those funds to your account without fear of a reversal later.
Banks have to follow certain guidelines when establishing a funds availability policy. Regulation CC permits banks to hold certain types of deposits for a “reasonable period of time,” which generally means:
Funds availability timelines can vary, based on the type of funds being deposited. This Regulation CC funds availability chart breaks down funds availability for different types of deposits covered by the federal guidelines.
In-person at a branch At an ATM or night deposit At another bank’s ATM Same day or next business day Second business day Fifth business day Wire transfers, ACH and direct deposit Electronic deposit Up to the second business day Cashier’s checks, certified checks and teller checks In-person at a branch At an ATM or night deposit At another bank’s ATM Next business day Second business day Fifth business dayU.S. Treasury checks, Postal Service money orders, checks issued by the Federal Reserve or local government agencies
In-person at a branch At an ATM or night deposit At another bank’s ATM Next business day Second business day Fifth business dayOn-us checks (branches must be in the same state for same, next and second business day hold rules to apply)
In-person at a branch At an ATM or night deposit At another bank’s ATM Same or next business day Second business day Fifth business day Mobile check deposit Mobile app scan Immediately, or up to second business day Regular paper checks, less than $200 In-person at a branch At an ATM or night deposit At another bank’s ATM Next business day Next business day Fifth business day Regular paper checks, more than $200 In-person at a branch At an ATM or night deposit At another bank’s ATM First $200, next business day; remainder second business day First $200, next business day; remainder second business day Fifth business day See More See LessAside from funds availability at your bank, there are other scenarios where funds paid to you may be held temporarily. For example, say you run a business online and use a PayPal account to process payments. The PayPal funds availability policy allows for funds credited as a pending balance to be held up to 21 days. This allows PayPal enough time to ensure there are no problems with the order and the customer is satisfied before releasing the money to you.
eBay follows a similar policy. It may hold payments received for up to 21 days to verify transactions were completed successfully. Once eBay determines that an order has been delivered, funds on hold can be released to you within 24 hours.
Under Regulation CC, banks must follow the Federal Reserve guidelines for determining how long to hold checks. As mentioned above, banks can only hold checks for a “reasonable period of time,” as defined by Regulation CC.
In terms of how long it takes a check you deposit to clear, it generally ranges from two to five business days. It’s important to keep the timing in mind if you plan to write checks to pay bills, schedule electronic payments or make purchases with your debit card. In some instances, your bank’s funds availability policy may allow for longer hold times under extended funds availability rules.
It’s also important to know your bank’s daily cutoff time for processing deposits into your account. After the cutoff time, the deposit will be processed with the next day’s batch of deposits.
The cutoff time for making deposits at a branch may vary from the cutoff time for making deposits at the ATM or via mobile check deposit. Again, this information should be delivered to you by the bank as part of your account agreement, and you also may be able to find it at your bank’s website.
Regulation CC allows banks to have some leeway in determining funds availability hold times for certain types of deposits. The regulation requires your bank to notify you that the funds are being held and when they’ll be made available to you.
Here’s a quick rundown of the scenarios where you may be subject to a longer hold time on deposits, according to the Regulation CC guidelines:
These situations can apply to deposits made at brick-and-mortar banks, online banks and credit unions. Again, financial institutions are bound by Regulation CC to ensure that hold times, whether regular or extended, are within reasonable limits.
The Expedited Funds Availability Act (EFAA) was passed in 1987 to address concerns over the length of time banks were holding customer deposits. The EFAA, implemented by Regulation CC, established maximum permissible hold times for checks and other deposits. With checks, the EFAA requires that:
The Expedited Funds Availability Act aims to ensure that customers aren’t waiting on hold indefinitely to access their deposits. The Act also requires banks and other financial institutions to inform customers about their funds availability policies and how they work. This information is provided through a funds availability disclosure.
Whether you’re brand-new to your particular bank or have been there for years, it’s helpful to understand what kind of funds availability policy is in place.
Start with the types of deposits you make the most often. For example, if you rely on mobile check deposit to deposit checks, you should know how long you can expect funds to be held. The same goes for electronic deposits.
You also may want to discuss the best deposit option with your bank if you’re expecting a large payment. For example, let’s say that you’re selling your house and expect to pocket $40,000 at closing. Your closing attorney gives you the option of receiving a paper check or a wire transfer. In this scenario, the wire transfer may be better if your bank makes those deposits available the same or next business day. While you may pay a fee for a wire transfer, it could be worth the convenience of not having to wait two to five business days or more for a paper check to clear.
Lastly, be careful when accepting check payments from unknown or untrusted sources. For example, if you’re selling a car, and someone wants to pay you with a personal check, it may be safer to ask for a cashier’s check. Cashier’s checks are drawn against the bank’s funds rather than a person’s account and can offer more security and protection against check fraud.
Finding banks with immediate funds availability can be challenging, but it’s not impossible. Some banks shorten the gap for funds availability and make your money accessible faster—sometimes for a fee.
Here’s an overview of some credit unions and banks with immediate funds availability options.
Citizens BankGet instant mobile check deposit funds available at the close of the same business day for checks written from a Citizens Bank account deposited by 10 p.m. ET.
Fifth Third BankExpress Banking customers get immediate access to funds when they deposit checks through the Fifth Third Bank mobile app a fee applies for non-Fifth Third Bank checks.
Navy Federal Credit UnionThe first $225 of deposits made at Navy Federal Credit Union ATMs is available the same business day.
When depositing checks through the PNC mobile app, at a DepositEasy ATM or with a teller, PNC Express Funds allows you to make the total amount available immediately for a fee.
Regions BankGet instant mobile check deposit through the Regions Bank mobile app for a fee ranging from 1% to 4% of the check amount ($5 minimum).
SunTrust BankFunds are available immediately for cash deposits at a branch of SunTrust ATM, wire transfers and electronic deposits.
TD FastFunds allows you to deposit eligible checks at a TD Bank branch and access them instantly for a 3% service fee ($5 minimum).
The first $225 of a mobile check deposit is usually available immediately, with the remaining deposit amount available the next business day.
Wells FargoUp to $400 in check funds deposited at a Wells Fargo branch or ATM may be made available the same business day the deposit is made.
Monthly costs are based on a 30-year-old female in California. Costs are for comparison only; your own cost will likely be different. Humana’s Preventive Value plan focuses on preventive care and doesn’t include coverage for oral surgery, root canals and other major services
