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
Yes. Regulation CC provides six exceptions that allow banks to extend deposit hold periods. The exceptions are considered safeguards against risk.
What is the federal regulation for funds availability? ›
General Rules (§§ 229.10(a)–229.10(c))
Cash, electronic payments, and certain check deposits must generally be made available for withdrawal the business day after the banking day on which they were received.
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 are the requirements for funds availability disclosure? ›
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.
What is the $225 availability rule? ›
A detailed explanation can be found in section 229.12 of Regulation CC. But remember, the Expedited Funds Availability Act requires the first $225 of a deposit that is not already subject to next-day availability to be made available by the first business day following the day of deposit.
What is funds availability policy? ›
Funds availability refers to when you can access money that you've deposited with your bank to pay bills, make purchases and cover everyday expenses. With some exceptions, money that you add to your checking account or savings account isn't always available to use right away.
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).
What are the availability requirements? ›
What is the availability requirement? The availability requirement determines how long your IT System can be unavailable without impacting operations.
What is the law of availability? ›
The mental availability of an action's consequences is positively related to those consequences' perceived magnitude. In other words, the easier it is to recall the consequences of something, the greater those consequences are often perceived to be.
What is the availability policy? ›
This is a bank's policy as to when funds deposited into an account will be available for withdrawal.
To ensure availability of funds whenever required: The main objective 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.
Do any special rules apply to the funds availability schedule for cash withdrawals from a check deposit made with a teller? ›
1 The first $100 of a day's deposit must be made available for either cash withdrawal or check writing purposes at the start of the next business day § 229.10(c)(1)(vii). 2 Local checks must be made available for check writing purposes by the second business day following deposit § 229.12(b).
What is proof of availability of funds? ›
You can apply for a proof of funds verification from your bank. This letter should be signed by authorised bank personnel and must include the following points: Details of the bank, including name, address, and contact information. An official statement from the bank verifying the concerned individual's financial ...
What is the Federal Funds Availability Act? ›
Board of Governors of the Federal Reserve System
In 1987, Congress passed the Expedited Funds Availability Act (PDF) (EFAA), to address concerns about the lengths of holds banks were then placing on checks deposited by their customers. The EFAA establishes maximum permissible hold periods for checks and other deposits.
Can I ask my bank to release funds early? ›
Early direct deposit is a service that some banks provide on certain qualifying account types. This service can potentially make direct deposited funds available in your account up to two business days earlier than usual.
What is the final rule of availability of funds and collection of checks? ›
In 2019, the Agencies promulgated a final rule that implemented this section of the EFA Act. The final rule codified a methodology for inflation adjustments and specified that the relevant dollar amounts shall be adjusted effective on July 1, 2020, on July 1, 2025, and on July 1 of every fifth year after 2025.
What is the availability act? ›
The Expedited Funds Availability Act (EFAA) regulates the hold periods that commercial banks can make on deposits. The four main types of deposit hold types are statutory, large deposit, new account, and exception holds.
What governs the availability and use of federal funds? ›
Board of Governors of the Federal Reserve System
The Board's Regulation CC (12 CFR part 229) implements the funds-availability and disclosure provisions of the EFAA in Subpart B of the regulation. The EFAA also gave the Board the authority to regulate the nation's check-clearing system more generally.
What is the period of availability of federal funds? ›
Periods of Availability
Congress provides budget authority in appropriations bills to be available for obligation over any of three periods: one fiscal year (one-year funds), multiple fiscal years (multi-year funds), or indefinitely (no-year funds).
