Here’s How Long It Takes for a Check To Clear at Your Bank

By Thomas Streissguth

January 5, 2023

Liubomyr Vorona / iStock.com

Key Takeaways

• According to the Expedited Funds Availability Act, passed in 1987, the first $200 of a check deposit must be made available by the next business day. The amount was later amended to $225. 
• For deposits at ATMs not operated by the bank, federal regulations require funds availability no later than five business days after the deposit. 
• Banks may impose cutoff times, after which deposited funds will be credited to the account on the next business day.  
• The bank’s policy on held funds should be printed on the receipt for the deposit. 

How Long Does It Take for a Check to Clear?

As an average, it can take up to five days for a deposited check to clear. Policies vary from bank to bank, but there are keys to getting the funds available quickly.   

Why Are Your Checks on Hold?

The federal $225 rule means checks for less than this amount will clear immediately. For greater amounts, a bank follows its own fund availability policy, which dictates the time needed to make funds available from a deposited check. A common policy is to make the funds available on the following business day. 

How Long Does It Take a $2500 Check to Clear?

If a check for $2,500 is deposited on Friday, for example, $225 would be available immediately, and the $2,275 balance will be available on a non-holiday Monday. It’s also common to make the entire balance of direct-deposited checks available immediately. 

In the following cases, there may be a longer hold of up to five business days on the funds. A federal banking regulation known as Regulation CC covers the exceptions that allow extended holds. 

High-Dollar Deposits

The bank may hold large deposits of more than $5,525 for an extended period. This is known as an “exception hold” and can last for a reasonable period of time, defined in the rules as up to five days–one explanation of why it might take up to five days for a check to clear, in addition to the original hold imposed by the bank.   

The exception hold applies to personal, business and government checks. It is permitted when the aggregate amount of check deposits reaches $5,525, meaning smaller checks can also be put on an exception hold if more than one check is deposited.

Re-Deposited Checks

In the case of a bounced check, a bank customer may re-deposit the check, but the bank may place an exception hold on it the second time around. The bank may have a policy that the check must clear before funds are made available.

Suspicious Check Deposits

A bank may place an exception hold on any check deemed suspicious or problematic. For example, a check that has been dated six months previous to the deposit. In this case, the bank may want to verify the account the check is drawn on is still open and active.  

New Accounts

A check deposited into an account opened within the last 30 days may be subject to an exception hold.

Overdraft History

If a customer has been regularly overdrawing an account, the bank is permitted to hold funds from a deposited check for an extended period. The regulations mention a review period of six months for checking accounts, meaning no overdrafts in the past six months would help you to avoid an exception hold on deposits. 

Doubtful Checks

If in the bank’s judgment collecting the funds from a deposited check is problematic, it may impose an exception hold. The bank would need to verify the check, after which the money would become available to the depositor.  

Did You Know?

There are a few scenarios that might fall under the definition of “doubtful collection.” For example, a bank might question a check written out for $1 billion or one that a child has obviously signed. Some checks, such as those unsigned, undated or with unclear routing or account numbers, might not be accepted at all. 

Notification and Time Period

If a bank does place an exception hold on a check, it must notify the depositor of the reason and explain the expected date for funds availability. Regulation CC allows exception holds to last no more than seven business days, after which the bank will have to establish the specific reason for the extended hold. 

If a deposited check is returned for insufficient funds, the bank will reverse the deposit and debit the account. If the debit results in a negative balance, the customer will be expected to resolve the issue as soon as possible. A bank typically charges a fee for all returned checks.  

Following is a partial list of major U.S. banks with their current fund availability policy.  

Banking rules can be confusing and complex. But by federal regulation, funds availability policies must be posted somewhere in the bank, which is also expected to print the information on deposit slips and give notice to account holders if the policy changes. If you still have questions or are unsure why a deposit is being held up, call your bank’s customer service line or head into a branch to discuss the matter. 

John Csiszar contributed to the reporting for this article.

The information related to Chase was collected by GOBankingRates and has not been reviewed or provided by the issuer of this product. Product details may vary. Please see the issuer’s website for current information. GOBankingRates does not receive commission for this product.

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