Bottom line. In most cases, a check should clear within one or two business days. There are a few cases in which a check might be held for longer, such as if it's a large deposit amount or an international check. Make sure to review your bank's policies for what to expect in terms of check hold times.
Key Takeaways
It usually takes anywhere between one to five business days to fully deposit the funds from a check into your account. The check-clearing process may be delayed depending on the amount being deposited, the status of your account and the institutions involved in the transaction.
Banks place holds on checks to make sure that the check payer has the bank funds necessary to clear it. In addition to protecting your bank, a hold can protect you from spending funds from a check that is later returned unpaid.
This is because (in the US) by federal law funds must be made available on check deposits based on certain rules within a certain amount of time -- and often it take longer than this time for the bank to even verify if the check is valid or not.
Here's how long it generally takes for a check to clear: Usually within two business days for personal checks but up to seven for some accounts. Usually one business day for government and cashier's checks and checks from the same bank that holds your account.
The Federal Reserve says that a "reasonable" extended hold generally means one additional business day (total of two business days) for a bank's own checks and five additional business days (total of seven) for most other checks.
Some banks or credit unions may make funds available more quickly than the law requires, and some may expedite funds availability for a fee. If you need the money from a particular check, you can ask the teller when the funds will become available.
In-Person Deposits: Going to your bank and depositing the check with a teller may lead to faster clearing times since the check is being handled directly by the bank.
Contact Your Bank
You can ask your bank to provide an explanation for the hold or sometimes even to release the hold. Keep in mind, however, that it can be difficult to get a bank to remove a hold.
A check becomes outstanding when the payee doesn't cash or deposit the check. This means it doesn't clear the payor's bank account and doesn't appear on the statement at the end of the month. Since the check is outstanding, this means it is still a liability for the payor.
Personal checks
With the personal check, if the check hasn't been cashed after 180 days or six months, it will be considered invalid.
As the name implies, banks and other financial institutions are normally closed on bank holidays. As such, bank holidays typically don't count towards a check's clearing time.
Depositing a large check
If you make an unusually large deposit, your bank may place a hold on bank account funds until they can verify that these funds will clear. The same applies to multiple large deposits made in a short-time period.
Often, banks will let you withdraw up to $20,000 per day in person (where they can confirm your identity). Daily withdrawal limits at ATMs tend to be much lower, generally ranging from $300 to $1,000.
Another way to speed up the check-in process is to offer your guests some self-service options. For example, you can use kiosks, tablets, or mobile apps that allow your guests to check in, choose their room, pay, and get their key without waiting in line.
The safest and fastest way to get cash is to take your check to the check writer's bank. That's the bank or credit union that holds the check writer's funds, and you can get the money out of their account and into your hands instantly at that bank.
A bank may hold a check longer if it's an unusual deposit, such as if you've never deposited a check from that payer before. A check may take also longer to clear if it's for a larger amount or is from an international bank. Checks from foreign banks usually require longer hold times because they take longer to verify.
According to banking regulations, reasonable periods of time include an extension of up to five business days for most checks. Under certain circumstances, the bank may be able to impose a longer hold if it can establish that the longer hold is reasonable.
The fastest way to have access to check funds is to deposit the check in person at a bank or credit union branch. That ensures the deposit is made before the bank's cutoff time, which speeds up the process. Mobile check deposits and those made at ATMs after hours typically take longer to clear.
A demand deposit account (DDA) is a bank account from which deposited funds can be withdrawn at any time, without advance notice.
The hold allows us (and the bank paying the funds) time to validate the check – which can help you avoid potential fees in the event a deposited check is returned unpaid. Keep in mind, though, that a check may still be returned unpaid after funds have been made available to you.
Banks must report your deposit to the federal government if it's more than $10,000 to alert the federal government to monitor for potential financial crime.
If your bank has placed a hold on a check that you mobile deposited into your account, it means that the funds are not immediately available for withdrawal. During this hold period, you cannot cash the check or access the funds because the bank is verifying the check's authenticity and ensuring that it will clear.