Understanding Check Holds

What You Need to Know About Check Holds

Have you ever received a check, maybe a payroll check or funds from a settlement, but your credit union placed a five-day hold on your deposited check? Here is some information on understanding check hold timeframes.

What is the Expedited Funds Availability Act (EFAA)?

The Expedited Funds Availability Act (EFAA) requires credit unions to make funds deposited into your transaction account or share checking account available as specified to the time schedules they disclose in their funds availability policy. The credit union should provide you initial disclosures, including its funds availability statement, prior to accepting your funds when opening a new transaction account.  

Here are a few availability timeframes to keep in mind the next time you deposit a check at your credit union:

• Cash deposits are generally readily available for withdrawal.  
• Certain checks deposited in person for $225 or less can be accessed the next day.  
• Funds deposited in your account not in person by a check are available for withdrawal no later than the second business day following the banking day on which the funds were deposited if the check is a:  
  • Local check  
  • U.S. Treasury check  
  • U.S. Postal Service money order
  • Federal Reserve Bank or Federal Home Loan Bank check
  • State or local government check
  • Cashier’s check (sometimes called a certified check)

Check Hold Exceptions

However, there are certain situations that require a credit union to hold your check for a longer period of time. Situations where a credit union is required to hold your check and inform you of when the funds will be available for withdrawal are:

• New accounts: An account is considered new during the first 30 calendar days after the account has initially opened.  
• Large deposits: A check deposit greater than $5,525.
• Redeposited overdrafts: A check deposited a second time after being previously returned unpaid.

Reasonable cause to doubt collectibility – When the credit union has a reasonable belief that the deposited check may be uncollectible due insufficient funds at the depository institution or fraud.  

Need Additional Help?

If you have asked your credit union about its fund availability policy and you still have questions, you can contact NCUA’s Consumer Assistance Center at 800-755-1030 for further guidance.