Open Forum → Re: how long should it take for a cashier's check to go through

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.

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.

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!

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.

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".

I didn't sell a car, I was using it to give an idea the value of the check.

Still, cash works best. Unless, of course, the sender doesn't live close to you.

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.

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.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Bullshit.

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".

That is the escuse they use.

Why can a check you wrote be witdrawn the day it is deposited in a bank, but the checks you deposite maybe subject to a hold?
Is it because the bank is trying to protect itself from fraud?
Or
Trying to make money from fees?
Or Both?

I go with Both.

At least have some idea about what you're speaking:

»en.wikipedia.org/wiki/Ch ··· k_kiting

I do.
I remember being able to float checks, it was a normal part of paying bills.

Then in the last decade, thanks in part to electronic fund transfer, banks were able to nail that coffin shut.

Hence why the like to come up with kool aid excuses like:
"Holding the check to verify the check/funds are real".
When behind the scences they are hoping that your account will be short funds so they can collect a fee or two.

I dunno why your disagreeing about it. You know it's true, just like I know it's a legit reason to hold a check to ensure the funds exist. But the banks use the kinder truth to cover the truth they want to end up happening. That you account will be short and they collect fees.

Sometimes they're simply due to incompetence at the bank. A co-worker of mine had continual problems with a bank violating their own funds availability policy, which resulted in his checks bouncing. Each time he would get letters from the bank saying it was their fault, so he could give them to the recipients of the checks that bounced.

He eventually solved the problem by moving to a bank that was run properly.