Depositing a check into your account and learning that the funds will not be immediately available for use can be frustrating and lead to negative feelings regarding your financial institution.  It is important to note, however, that check holds are a normal part of the banking process and are put in place to protect you from using funds that may not actually clear. 

When a check is deposited, it takes time for the money to be transferred to your bank or credit union.  If funds were made immediately available to you and the check did not end up clearing, you would be responsible for paying that money back.  So, you can see how check holds can ultimately save you from a much more distressing outcome.

There are different types of check holds that carry different time limits, and the reasons are not always cut and dry.  Many factors weigh in, such as length of time you’ve had the account, if the account is in good standing, where the check is coming from, if the check looks to be fraudulent, and so on.  The Federal Reserve does regulate the time a check can be held, and you have a right to know which hold you are facing when you make a deposit.

At Midwest Members Credit Union, we are committed to getting your money to you as quickly and safely as possible.  The following is a guide to check hold lengths.

• Two Day - $225 is released the business day after the deposit is made, and the remainder is made available on the following business day.
• Seven Day – This is probably the most common check hold. $225 is released the business day after the deposit is made, and the remainder is made available on the seventh business day.
• Nine Day – This is for new accounts that have been opened for less than 60 days.  All money is held for nine business days.
• Ten Day – All money is held for a period of ten business days.  Checks written off credit cards are subject to a ten day hold, because it takes that long for the funds to become available.

If you have any questions regarding your check hold, please feel free to contact us.