Yes. Regulation CC provides six exceptions that allow banks to extend deposit hold periods. The exceptions are considered safeguards against risk. These are the exceptions:
- Checks deposited to new accounts (accounts that were opened 30 or fewer days ago).
- Large deposits ($5,525 or more in checks in any one day) but only for the amount in excess of $5,525.
- Re-deposited checks.
- Deposits made by check to accounts that have been repeatedly overdrawn in the last six months.
- Deposits of checks for which the bank doubts collectability.
- Deposits made under certain emergency conditions.
If a bank places a longer hold on a deposit under one of these exceptions, it must give you a notice. The notice must give the reason for the hold and tell you when your deposit will be available for withdrawal. Regulation CC provides that banks may extend the availability schedule by a reasonable period of time. Here are some examples:
- An extension of up to five business days for most checks
- An extension of one business day for checks that are drawn on, and deposited into, the same bank
- An extension of up to six business days for funds deposited into an automated teller machine (ATM) not owned by the bank
Circ*mstances will vary, but a check that is subject to an exception hold would generally be available no later than the seventh business day after deposit. If the bank wants to delay availability beyond that date, Regulation CC requires the bank to be able to establish that the additional time is reasonable.
Refer to 12 CFR 229 "Availability of Funds and Collection of Checks (Regulation CC)."
Last Reviewed:April 2021
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.
FAQs
Are there exceptions to the funds availability (hold) schedule? Yes. Regulation CC provides six exceptions that allow banks to extend deposit hold periods. The exceptions are considered safeguards against risk.
What are some exceptions to the standard funds availability policy? ›
Here are some examples: An extension of up to five business days for most checks. An extension of one business day for checks that are drawn on, and deposited into, the same bank. An extension of up to six business days for funds deposited into an automated teller machine (ATM) not owned by the bank.
What is a reasonable period of time for delaying availability of funds? ›
Generally, a reasonable period is considered to be no more than one business day for on-us checks and five business days for local checks. If a depositary bank extends its availability beyond these timeframes, it must be able to prove that the extended delay is reasonable.
What are the availability rules? ›
Availability Rules allow the capturing of regular available hours for a person or resource. Often used to provide defaults for a person's working hours to be used with an Availability query. Used in combination with our Real-Time Scheduling and Availability features to manage an account's availability dynamically.
What is the federal regulation for funds availability? ›
Deposits, cash or check, made at an ATM that you do not own (a "nonproprietary" ATM) must be made available by the fifth business day. For checks of types not discussed above, funds generally must be made available in accordance with a schedule specified in Regulation CC.
What is a funds availability schedule? ›
The availability schedule is the length of time banks are permitted to keep deposits on hold. These rules are mandated under Federal Reserve regulations. In practice, banks often make funds available more rapidly than is required under these regulations.
What is to ensure availability of funds whenever required? ›
To ensure availability of funds whenever required: The main object type of financial planning is that sufficient funds should be available in the company for different purposes such as the purchase of long-term assets, to meet day-to-day expenses, etc. It ensures the timely availability of finance.
What is the $225 availability rule? ›
Generally, a bank must make the first $225 from the deposit available—for either cash withdrawal or check writing purposes—at the start of the next business day after the banking day that the deposit is made.
What is the $450 rule? ›
A depositary bank shall, however, make $450 of these funds available for withdrawal by cash or similar means not later than 5:00 p.m. on the business day on which the funds are available under paragraphs (b), (c), or (f) of this section. This $450 is in addition to the $225 available under § 229.10(c)(1)(vii).
Why might a bank delay the availability of your deposit? ›
A funds availability delay or delayed funds availability refers to the holding period banks impose when crediting deposited items to a customer's account. Banks can place a hold on checks if there's a possibility that the check may not clear.
What is the availability requirement? The availability requirement determines how long your IT System can be unavailable without impacting operations.
What is limitation of availability? ›
It means what it says on the tin, if you order something, especially fmcg's, they may not have any left by the time your order is processed, in which case it is no longer available.
What are the 7 Rs of availability? ›
Each of these approaches start with the same letter, so we refer to them as the seven R's of high availability:
- Redundancy.
- Reputation.
- Reliability.
- Repairability.
- Recoverability.
- Responsiveness.
- Robustness.
Fiscal law is the body of law that governs the availability and use of federal funds.
What is the period of availability for appropriations? ›
Current Period: This period, also known as period of availability, is the initial period for appropriated funds that occurs once funds have been appropriated by Congress for execution. During this period, funds are available for new obligations, obligation adjustments, expenditures, and outlays.
What is a delayed ACH availability? ›
An ACH delay is a temporary hold on an electronic deposit from an acquiring bank to your direct deposit account. Processors impose an ACH delay on new merchant accounts as a way of lowering their risk. You may be asked to agree to an ACH delay if: You have poor personal credit.
What are the reasons for exception holds? ›
Exception holds are used for accounts that have been frequently overdrawn, or when banks have reason to suspect that a deposit is legitimate. In rarer cases, they may be used if the bank branch suffers a power outage or a computer system failure.
What are the rules of Regulation CC? ›
Regulation CC sets forth the requirements that credit unions make funds deposited into transaction accounts available according to specified time schedules and that they disclose their funds availability policies to their members. It also establishes rules designed to speed the collection and return of unpaid checks.
Can a bank override a check hold? ›
A bank may also override a hold if it verifies the check at the time of the deposit. To get a bank to override a hold, you typically must visit a branch. Although it will cost you some time, it may be worth it if you need the funds immediately.
Can a bank deny you access to your money? ›
Banks may freeze bank accounts if they suspect illegal activity such as money laundering, terrorist financing, or writing bad checks.
