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Banks holding out of state checks
What is the deal with banks and out of state checks? I deposited an out of state check from a business customer and the teller told me they may put a 5-9 day hold on the funds "due to the amount being more than $5000". I emailed US Bank customer service to complain, and received a response that said the teller was wrong, the hold is 7-11 days. To make it worse, part of the funds would be available in 7 days and the balance in 11 days. Does anyone see any logic in this? I thought new banking rules sped up this process to almost overnight. And what's with the partial funds available in 7 days and balance in 11 day logic? The check will either clear or not. I can't see half of it clearing in 7 days and the rest in 11. I suspect the bank receives the funds overnight and then holds them for 7-11 days so they can earn interest on customer money. Banks suck.
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Banks holding out of state checks
You haven't heard of ID theft? How about "Demand Checks"? Yes, it is possible to write a check on someone elses account without having access directly to their account or a valid signature. The bank is just covering their ass by making sure they get their money from the other bank before giving it to you. Otherwise, they may be liable. I would PREFER a bank that was as caution as yours.
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Banks holding out of state checks
I have deposited dozens of checks from this same customer, and they haven't held those. Why now? Besides, if it did bounce they would just come back and yank the funds back out of my account. I have plenty there to cover it and have been banking there for seven years.
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Banks holding out of state checks
My bank does the same. They tell me 10 days but I usually find the funds in the account in 3 or 4 days. I deposited a couple of 40000 and 50000 ones though and they had have a 10 minute conference before they would even except the things.
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Banks holding out of state checks
Ken, as you know, the meth-heads are really making a run of the system here in the Portland area. Your bank may have just been stung with some bad checks, so their security is probably a little tighter than normal. Hang in there...
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Banks holding out of state checks
Maybe that's it. Maybe the banks are taking advantage of the situation a bit too. I'll visit a few other banks and talk to their new accounts to check policies elsewhere. My bank has about a 300% turnover rate and they're always screwing things up anyway. Unfortunately, there's only one bank in Banks 
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Banks holding out of state checks
First of all, a disclaimer. I'm a banker. There is lots of fraud out there and banks do need to be careful. Lots of acid washed checks, (original payee removed and fraudulent payee added) stolen checks, forged signatures etc. The only way banks can protect themselves and innocent customers is to place holds for the possibility of returns.
However, sounds like you have a long-term good relationship with your bank and they most certainly should take that into consideration and for that reason they should not place holds on your deposited items. The problem is the bank. The bank you mentioned (orignally based in Portland) is one of the major national banks and unfortunately you are only a number to them. I know because I worked for a bank that was acquired by them and left to go to a community bank. You should too. A community bank has much more interest in your business and will likely not treat you like a number. You have a number of well run community banks in your area. Give one a try.
Good Luck!
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Banks holding out of state checks
I have checking accounts at two different banks (one is US Bank)and a credit union. All have the same policy on the deposit and holding of larger out of state checks. The only thing that bothers me is that with present day technology any check I write is suppose to clear my account within a day or so after it is cashed by the receiver so why doesn't any check I cash clear the writers account within a day or so. I agree with Ken that is just one way the bank can make money on interest.
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Banks holding out of state checks
You are right, it does only take a day or two for a check to clear. But if it does not clear and is returned for some reason, the special handling of the return can cause the return to take several days. Throw in a weekend and you've got your 7-10 days total elapsed time. It does not come back as quickly and effeciently as it was processed.
The important thing in any check transaction from the bank's point of view is "know your endorser". When you deposit a check to your account, you are the endorser and are liable for that item. If the bank knows you and trusts you and you are creditworthy, they should not be placing a hold on the deposit. Most national banks don't bother to get to know you or employ untrained staff that do not have the ability to know a good customer from a bad one, so they simply treat all customers the same way....as bad customers. Everyone loses then.
Again, find a bank that cares, get to know the manager and supervisors, explain to them your type of business, your needs and I'll bet they will take care of your needs without the hassle.
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Banks holding out of state checks
Thanks, bvance, I'll look around for a local community bank. I never had these types of issues with the community bank we had in Vancouver WA so going back to what works makes sense.
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