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thender
Screen tycoon
Premium
join:2009-01-01
Brooklyn, NY
kudos:1

how long should it take for a cashier's check to go through

I was issued a cashier's check from Northfield bank in bay ridge, brooklyn.

I went to deposit it in chase bank, at a branch in bay ridge, brooklyn.

The deposit made November 5th, according to chase, won't become available until November 16th.

Is this for real?

It was a large dollar amount, but a week and a half seems asinine.

First it said it was available, then it debited 4/5 the amount, then it debited the whole amount and said funds will clear on the 16th.

Is this standard across all banks, or is chase telling me how much they want me to close out my business there and open an account at TD?
--
If you're going to repair your own Macbook, benefit from my experiences.


McSummation
Mmmm, Zeebas Are Tastee.
Premium,MVM
join:2003-08-13
Fort Worth, TX
kudos:2

1 recommendation

There are a lot of fake cashier's checks floating around. They're simply trying to protect both themselves and you.


Msradell
P.E.
Premium
join:2008-12-25
Louisville, KY
reply to thender
In most cases a cashier's check unlike a regular check is deposited immediately and the funds are usually available the next day. That's why they're used in real estate transactions etc. since in many cases the funds are needed immediately for the purchase of another property.


The Pig
I know you want to be me
Premium
join:2009-09-11
reply to thender
It was always ready the next day for me!
Now, if it is a big check they can and do only allow you to take so much out of it (I think around $500) and the rest you have to wait for, but I doubt it would take 11 days to clear!

tcope
Premium
join:2003-05-07
Sandy, UT
kudos:2
reply to thender
The FDIC says it best:

"During compliance examinations, we have recently noted some banks have been automatically placing holds on any cashiers’ checks. The purported justifications for these holds are the frequent reports of counterfeit cashiers’ checks circulating through the monetary system; thereby, giving banks a reasonable cause to doubt all cashiers’ checks’ collectibility. The FDIC has issued numerous Special Alerts warning of counterfeit cashier’s checks from various institutions and banks are wise to be cautious. However, it is not permissible to automatically hold these funds beyond the statutory availability schedules simply because the deposit is a cashier’s check."

"Banks are required to make funds deposited in an account by cashier’s check available for withdrawal not later than the business day after the banking day on which the funds are deposited."

"The exceptions to this availability schedule are limited to the six reasons in Regulation CC that allow the bank to place an exception hold on deposited funds. The exceptions are (1) new accounts, (2) large deposits (in excess of $5,000), (3) redeposited checks, (4) repeated overdrafts, (5) reasonable cause to doubt collectibility, and (6) during certain emergency conditions."

"Some of the other allowed exceptions might justify placing a hold on the funds. For example, if the cashier’s check was in excess of $5,000, the bank could use the “large deposit” exception to hold the funds in excess of $5,000 for a longer period of time."

I typically hear of banks placing a hold on a check for 10 business days. So the 11 working days that you mentioned is not unusual.

With what you described it sounds like a manual hold was placed on the check. Have you spoken with a manager at the branch to see if they are willing to release the funds or partial funds sooner.

Chase is weighting the amount they make on your accounts vs losing millions in fake checks. You do the math and see what you would do.


thender
Screen tycoon
Premium
join:2009-01-01
Brooklyn, NY
kudos:1
The check I deposited certainly wasn't in the millions range. Think more like a used corvette.

I went to the bank yesterday, a day after depositing, and my banker says they do this sometimes, and to visit if they still have funds on hold by Monday. I guess I'll visit Monday and ask them.
--
If you're going to repair your own Macbook, benefit from my experiences.


The Pig
I know you want to be me
Premium
join:2009-09-11
Don't you check your accounts on-line?
That will tell you when it is clear!
Unless of course you have nothing better to do Monday!


thender
Screen tycoon
Premium
join:2009-01-01
Brooklyn, NY
kudos:1
I did, and mentioned in my original post, they say the 16th.

Which feels way too long for a cashier's check issued by a real bank.
--
If you're going to repair your own Macbook, benefit from my experiences.


McSummation
Mmmm, Zeebas Are Tastee.
Premium,MVM
join:2003-08-13
Fort Worth, TX
kudos:2
reply to thender
said by thender:

The check I deposited certainly wasn't in the millions range. Think more like a used corvette.
Oh, bad choice. I've always dealt in "cash only" when I sold a car. It raised eyebrows in '67 when I walked into my bank with several thousand dollars in cash when I sold my E-Jag. When I sold my 'Vette in '76, the buyer and I used the same bank, so it was a matter of "he got cash for the loan, slid it across the window to me and I deposited it in my account".


thender
Screen tycoon
Premium
join:2009-01-01
Brooklyn, NY
kudos:1
I didn't sell a car, I was using it to give an idea the value of the check.


McSummation
Mmmm, Zeebas Are Tastee.
Premium,MVM
join:2003-08-13
Fort Worth, TX
kudos:2
Still, cash works best. Unless, of course, the sender doesn't live close to you.


thender
Screen tycoon
Premium
join:2009-01-01
Brooklyn, NY
kudos:1
The bank had no cash option for this, just a cashier's check for the value owed to me. Even if they did, it would be unwise to carry that much down the street on a rainy day.
--
If you're going to repair your own Macbook, benefit from my experiences.

Bobcat79
Premium
join:2001-02-04
reply to thender
My bank would make the first $10,000 available around 8 PM the same day.


CylonRed
Premium,MVM
join:2000-07-06
Bloom County
reply to thender
If the check is in the 5 figures then there is red tape to go thru - cashiers check or no.

Every year I get a large check form my father than I have to deposit and then send out a payment as part of a trust. It is 5 figures - takes about a week to 1.5 weeks to get all of the money in my CU account.

peterboro
Avatars are for posers
Premium
join:2006-11-03
Peterborough, ON
reply to thender
I sold a motorcycle last winter and deposited a bank draft. They said it would take up to 10 business days to clear but they would release all the funds to me as my overdraft would cover it.

OmagicQ
Posting in a thread near you

join:2003-10-23
Bakersfield, CA
kudos:1
reply to thender
said by thender:

The bank had no cash option for this, just a cashier's check for the value owed to me. Even if they did, it would be unwise to carry that much down the street on a rainy day.
Couldn't they have just transferred it into your account at chase? It would have only taken a day or 2 at most.
--
THERE IS AS YET INSUFFICIENT DATA FOR A MEANINGFUL ANSWER.


dispatcher21
911 Where is your emergency?

join:2004-01-22
united state
kudos:1
reply to thender
Here is a link for Reg CC, which covers deposits and funds availability. »www.federalreserve.gov/pubs/regcc/regcc.htm

PX Eliezer70
Premium
join:2008-08-09
Hutt River
kudos:13
Reviews:
·callwithus
·voip.ms
reply to thender
In a future situation, you might want to ask the bank in advance about electronic ways (such as wire transfer) if the speed is an issue.

Also, have you had the account at Chase for a while? Do the folks there know you? The time to ask how long a "hold" would be, would have been before you deposited the check. If the manager knows you and/or there is a good account history, the he/she can shorten the hold or sometimes expedite the processing.

And, perhaps the manager at Chase could have called the manager at the other bank....

But yes, counterfeit cashiers checks abound, and banks HAVE been burned. In the end, the bank makes the depositor responsible, so the DEPOSITOR gets burned. This helps to prevent that.

MGD
Premium,MVM
join:2002-07-31
kudos:9
reply to thender
said by thender:

I was issued a cashier's check from Northfield bank in bay ridge, brooklyn.

I went to deposit it in chase bank, at a branch in bay ridge, brooklyn.

The deposit made November 5th, according to chase, won't become available until November 16th.

Is this for real?
....
..
Your bank is abusing you using a form of reverse kiting for them to earn float interest on the funds. You can confirm this by checking with Northfield bank, and ask them when the funds actually cleared their general account. I assure you that the funds cleared into your bank within 24, 48 hours max. The egregious issue here is that the cashiers check was drawn on a local in town bank. If there were any doubts about its authenticity the bank could have made a local call a few blocks to the issuing bank and confirmed the validity of the check and that you were the actual payee.

As tcope See Profile notes, the bank is clearly not in compliance, and you should consider filing a complaint. There is no valid reason to put such an extensive hold on a same town local cashier's check, much less to withhold 24 hour availability of the first $5,000. There are prompt and reasonable options to address any potential issues or concerns. Again you can establish further grounds for the validity of filing a formal complaint against Chase by asking Northfield bank when the funds for their cashier check cleared their general account. In all likely hood Chase has already been siting on these funds for several days, earning interest, while restricting your access to them.

Read dispatcher21 See Profile's link to the Federal Reserve Reg CC compliance requirements, it is a frequent cause of complaints filed against banks by consumers.

MGD


CylonRed
Premium,MVM
join:2000-07-06
Bloom County
A used Corvette can easily be more than $5K - an exception that tcopes quote points out. Depending on how much it is - they have all of the right to hold it for as long as they did...

What we would need to know is how much the check was and since we do not know that... IT can't be determined by anyone other than the OP is the bank is in compliance.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain


dispatcher21
911 Where is your emergency?

join:2004-01-22
united state
kudos:1
Even if the check is above the $5,000 the bank is still out of compliance since the first $5,000 would have to be made available the next day and the remainder above could be held, and from my understanding, they were holding the entire check.


drew
Radiant
Premium
join:2002-07-10
Port Orchard, WA
kudos:6
reply to thender
Standard practice.

I'd have put a hold on the amount over $5k too. If you were a valuable customer or were polite enough, I'd spent the 10 minutes to *attempt* to verify the check (i.e. looking up the routing number in an official database) was issued and could match a reasonable visual description.

This would be especially true if you don't normally have these kinds of balances. You are also young. If you've ever done any kind of credit app, they have your income level on file.. all these things add up to this situation.

Sorry thasp, but your bank isn't purposefully out to screw you.
--
"And Tehuno said let there be haste, not mp5, and there was haste. All creatures of the world rejoiced." -WotLK Ch. 3.3.2


Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1
reply to tcope
In simple terms:
The bank is playing jedi mind tricks on you. They are hoping that by holding the check, your account will run short of cash. Thus allowing the bank to collect overage/bounced check fees.

The banks will use any excuse "A butterfly brushed a rock off the cliff in Africa" to delay your deposite. They want you to be short of cash so they can reap the fees.

Sure it's easy to beat the banks at this game by keeping money in the account at all times.
But for some people, they haven't caught on, and get caught in the game.
--
To All Real Dads. For All Real Moms Every Real
Service.


drew
Radiant
Premium
join:2002-07-10
Port Orchard, WA
kudos:6
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Bullshit.

Bobcat79
Premium
join:2001-02-04
reply to drew
Like I said, my bank will make the first $10,000 available the next business day (which means 8 PM on the previous day). If you want even more money, you can get it:

quote:
With a special deposit slip obtained from your local branch, the funds from the following deposits, if made in person at one of our staffed teller stations, will be available on the first business day after the day of your deposit:

• Local and state government checks, payable to you, when the check is deposited in a branch in the same state where the issuer is located.
• Certified, teller and cashier's checks that are payable to you.



drew
Radiant
Premium
join:2002-07-10
Port Orchard, WA
kudos:6
It sounds nice, but if someone who has had a couple ODs, usually has less than $300 in their account walks in with a check that sized, they're not going to do that.

You can quote their site all you want, but that's now how it really operates in all circumstances.
--
"And Tehuno said let there be haste, not mp5, and there was haste. All creatures of the world rejoiced." -WotLK Ch. 3.3.2


Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1
reply to drew
What ever makes you happy.
Keep thinking the bank has your best interest at heart, and that they aren't looking for ways to get fees from you.
I guess Santa still visits your house, and mommy tucks you in at night.
--
To All Real Dads. For All Real Moms Every Real
Service.

Bobcat79
Premium
join:2001-02-04
reply to drew
Overdrafts? Of course they won't do it then. But I've never overdrawn a bank account or bounced a check in my 35 years of banking.


drew
Radiant
Premium
join:2002-07-10
Port Orchard, WA
kudos:6
I don't mean this in anyway but sincerity: good for you.

Unfortunately, in my experience as a teller and service manager (2nd in command at a branch at WFB), this is not true of at least 80% of the population. That's a pretty conservative guess too.
--
"And Tehuno said let there be haste, not mp5, and there was haste. All creatures of the world rejoiced." -WotLK Ch. 3.3.2


drew
Radiant
Premium
join:2002-07-10
Port Orchard, WA
kudos:6
reply to Snakeoil
said by Snakeoil:

What ever makes you happy.
Keep thinking the bank has your best interest at heart, and that they aren't looking for ways to get fees from you.
I guess Santa still visits your house, and mommy tucks you in at night.
I'm not a moron, I know banks are for-profit businesses.

But holds are always based on a risk assessment at the branch level - not "how to drive the fee income metrics of this branch up".
--
"And Tehuno said let there be haste, not mp5, and there was haste. All creatures of the world rejoiced." -WotLK Ch. 3.3.2