Bank deposit on hold

[khardbored]

I would think you'd be good within 10 days max.

For reference, when I sold a family member's house (trustee) they issued a physical check. No on asked or gave me any other options.

 

[Mr.G.Spot]

I would think you'd be good within 10 days max.

For reference, when I sold a family member's house (trustee) they issued a physical check. No on asked or gave me any other options.

Never heard of a 10-day hold in my life. Was it drawn on a bank in Uganda?

If they don't clear in 48 hours I would move my business.

 

[fcclone]

Anyone with a brain thinks this. DON'T DO IT.

Twenty years ago I had an opportunity to take my family of four to Hawaii. Very young family. My financial advisor told me not to borrow from my 401k. Explained my planned trip and cost involved. He said “what are you waiting for. Go.”

it all depends on priorities. Those are memories of a life time! One of the best decisions I ever made.

 

[Bipolarcy]

Anyone with a brain thinks this. DON'T DO IT.

Some years, the 6 percent interest I was paying myself was the only income my 401K was earning. I didn't think I looked too stupid then. Yes, there were some months that I was kicking myself for getting a loan when the rest of my 401K shot up by 12 or 15 percent, but those months were few and far between. The money I withdrew was still earning interest, so I don't see what the big deal is. As long as the money I withdrew earned at roughly the same rate my 401K was, I was happy, and happier still that my car was free and clear from any lending institution and that I was paying interest to some lender. It was a win-win.

 

[CyclonesRock]

Reg CC dictates the length of time funds can be held. As others have said it is for the protection of the depositor. If a check were to be returned and you have already spent those funds, how are you going to replace them? Basically on any check deposit, the first $200 is generally immediately available, $5,525 is available after 2 business days, and the remainder is available after 7 business days. If a check is paid it generally clears the issuing bank within a day or 2 if it is returned it may take up to 2 weeks before it is returned. The problem becomes many banks will not cooperate and confirm to an inquiry from the bank accepting a deposit if the check has actually cleared yet or not. Real Estate proceeds should ALWAYS be requested to be wired. The $30 - $50 it may cost you is nothing compared to all the costs associated with a RE transaction and the money is immediately available. Here is a link to a site that will show you the various reasons holds are placed on different types of funds and when the funds MUST be made available according to the law. Remember, just because the money is no longer being held does not mean the check has "cleared" the issuing bank.

Reg CC Reference Sheet | Bankers Online

 

[Mr.G.Spot]

Reg CC dictates the length of time funds can be held. As others have said it is for the protection of the depositor. If a check were to be returned and you have already spent those funds, how are you going to replace them? Basically on any check deposit, the first $200 is generally immediately available, $5,525 is available after 2 business days, and the remainder is available after 7 business days. If a check is paid it generally clears the issuing bank within a day or 2 if it is returned it may take up to 2 weeks before it is returned. The problem becomes many banks will not cooperate and confirm to an inquiry from the bank accepting a deposit if the check has actually cleared yet or not. Real Estate proceeds should ALWAYS be requested to be wired. The $30 - $50 it may cost you is nothing compared to all the costs associated with a RE transaction and the money is immediately available. Here is a link to a site that will show you the various reasons holds are placed on different types of funds and when the funds MUST be made available according to the law. Remember, just because the money is no longer being held does not mean the check has "cleared" the issuing bank.

Reg CC Reference Sheet | Bankers Online

The only time I have ever seen these standards enforced beyond 48 hours is when there is no relationship with the depositor/ customer, when the bank or customer has no way to verify where these funds are coming from, and/or the bank has a negative relationship with the customer making a deposit.

I don't know any of these facts other than it was a deposit from a home sale?

The funds from a real estate transaction are usually wired (previously stated) but if a check was issued, it is usually from a title/closing company. Call the company or go exchange the check at their bank for a cashier's check.

Lots of rules....... whatever......never have seen a hold like this before

 

[jmb]

The 3 signposts on the Dave Ramsey path to financial stability are:
1) Always pay cash for vehicles
2) If you get into a debt snowball fight, always aim for the face.
3) Avoid your bank's "on hold" policy by never making deposits greater than $500.

Simple rules for success, folks.

Rule three is ******* silly.

 

[jmb]

Never heard of a 10-day hold in my life. Was it drawn on a bank in Uganda?

If they don't clear in 48 hours I would move my business.

Some of it is predicated on deposit history.

 

[jmb]

The only time I have ever seen these standards enforced beyond 48 hours is when there is no relationship with the depositor/ customer, when the bank or customer has no way to verify where these funds are coming from, and/or the bank has a negative relationship with the customer making a deposit.

I don't know any of these facts other than it was a deposit from a home sale?

The funds from a real estate transaction are usually wired (previously stated) but if a check was issued, it is usually from a title/closing company. Call the company or go exchange the check at their bank for a cashier's check.

Lots of rules....... whatever......never have seen a hold like this before

You literally have no idea what you are talking about.

 

[Mr Janny]

Rule three is ******* silly.

I mean...that was the whole point of my post

 

[Chitownclone2]

Interest on deposited funds....whats that?

 

[Cyclonefan710]

Dave Ramsey can kiss my grits. I'm retired now and doing well. I'd rather pay myself interest than the bank. It just made more sense to me. I bought most of my cars this way, by taking a loan from my 401K and paying myself 6 percent interest.

Using your 401k like that is incredibly dumb.

 

[CoachHines3]

straight cash homie

 

[khardbored]

Using your 401k like that is incredibly dumb.

Broad generalizations makes your statement poor.

What if someone borrowed from their 401K in a down market? What if they used the money for a once-in-a-lifetime opportunity? What if you borrowed from yourself to pay off an old credit card debt that is over 20%?

I would agree that IN GENERAL I agree that leaving your 401K funds alone makes the most sense (even if you need to get a 4-5% car loan), but there are often other factors at play.

 

[1100011CS]

You literally have no idea what you are talking about.

must be why that person is on 'ignore'

 

[khardbored]

Never heard of a 10-day hold in my life. Was it drawn on a bank in Uganda?

If they don't clear in 48 hours I would move my business.

A bank in Togo, actually.

It was a conservative estimate.

I worked briefly at a bank 15+ years ago and there was a guy who brought in a hand-written, large, out of state check who had a minimal relationship with the bank, and was mad when the issuing back would not verify funds and we placed a long hold on it (can't recall if it was 10 days, but it was close ... at least 5-7).

It really is an issue. I have seen checks bounce or be shown to be fraudulent more than 2 weeks after deposit. Lots of scams out there.

And lots of issuing banks don't want to verify funds because there are things out of their control. Say I'm with the issuing bank, and the customer writes a check for $5,000. Then the customers pays his buddy, and the buddy's bank calls to verify. Sure, at the exact moment of the call, there might be $5,001 in his account, but how do we know he didn't write a second check for another $5,000 that is floating out there somewhere? So lots of banks just refuse to verify.

 

[Cyclonefan710]

Broad generalizations makes your statement poor.

What if someone borrowed from their 401K in a down market? What if they used the money for a once-in-a-lifetime opportunity? What if you borrowed from yourself to pay off an old credit card debt that is over 20%?

I would agree that IN GENERAL I agree that leaving your 401K funds alone makes the most sense (even if you need to get a 4-5% car loan), but there are often other factors at play.

Lol still dumb on all those examples

 

[jmb]

I mean...that was the whole point of my post

 

[ISUCyclones2015]

Lol still dumb on all those examples

Telling other people what to do with their own money is dumb and a fool's errand.

Can't take money to the grave with ya and **** your kids, they can figure it out too.

Hope you're happy in your 60s and 70s with all that money you saved in your 20s when you could've been doing something fun with it instead and actually enjoy it

 

[VeloClone]

Telling other people what to do with their own money is dumb and a fool's errand.

Can't take money to the grave with ya and **** your kids, they can figure it out too.

Hope you're happy in your 60s and 70s with all that money you saved in your 20s when you could've been doing something fun with it instead and actually enjoy it

There has to be a balance. While not enjoying life early can be bad, getting to retirement without enough funds to live comfortably isn't ideal either. I know quite a few people who have gotten to retirement age and can't afford to retire. There are little old ladies that are hanging on to jobs they have no business physically doing into their 70s because they can't afford to retire.