Getting around the “check hold”

Getting around the “check hold” on bank deposits…

Most banks will not tell you this but when you bank with an institution in which you can make deposits through the ATM, you may be able to beat the “hold” when you are depositing a check.

I love this option of being able to a make a deposit through the ATM. I would not bank with out it. But you must know your bank cut off times in order to make sure your money will be available. Just about all major banks such as Chase, Capital One, Bank of America, etc make it available to deposit your funds through an ATM.  Just as another deposit, ATM transactions do have their cut off times.

Take Capital One for example:

Their cut off time to make a deposit to post to your account within that one business day is 2pm. If you make a cash deposit, it will register to your account immediately. If you deposit a check it will show up the next business day. There is like a minimum one business day hold on checks. Some banks may put a 3-7 day hold on personal and business checks before the amount post to your account. So, how do you avoid these holds?

The ATM machine at Capital One takes deposits up to 5 pm to credit to your account the same business day. $100 of your deposit is available immediately for withdrawal, while the remainder of your deposit will post at close at the business day. This is cash or check. So, if someone gives you a personal check of $1500 and you deposit it into your account through the teller; they will probably put a hold on it until the check clears. If you take that same $1500 check and deposit it in the ATM machine, $100 will be available for immediate withdrawal and the remaining $1400 dollars will be available the next day and at midnight that same day with some banks. (Depending on how the process)

So, you get your paycheck from your job a day early. If you deposit your entire paycheck in your bank after 2pm on a Monday, through a teller; it is going to be Thursday before they money is available to you. Because #1, you deposit after 2pm with the teller, that puts it at the next business day transaction. (So it is considered a Tuesday transaction) #2, They put a one day hold on it so funds have an additional one day hold that’s means Wednesday your funds are till tied up until that midnight (or when ever the bank processes). That midnight is considered Thursday, your funds will be available Thursday for a Monday after 2pm transaction.

VERSUS

You get your paycheck from your job a day early. If you deposit your entire paycheck in your banks ATM machine after 2pm before 5pm, all of your funds will be available the next day. If after 5pm, then it is considered the next business day and your funds will not be available till that Wednesday. What a difference a day makes! No holds.

Making deposits through an ATM works best if you have a check. When you deposit cash it normally post to your account immediately, no matter what time of day it is. But, when you are depositing a check, after the cut off time, it puts that transaction on the next business day. Not only that, you get a hold placed on the check.

If someone writes you a check for $150 and the bank is closed on a weekend. You can go to your banks ATM and deposit that check, $100 will post immediately to your account and be available for withdrawal. The other $50 will be available Tuesday. Since the bank will process on a Monday Night. Just remember that only $100 will be available and not the full balance. The benefit is avoiding what could possibly be a 3-7 day hold.

This post does not speak for all banking systems and should not be use to validate any personal or business banking transaction(s). This post is written from experience and should not be used as legal advice. It is for informational purposes only.