Checks are something we are all familiar with; they just probably aren’t something you’re interacting with as much as maybe you once did. If you aren’t using them much, you might not be aware of how the process actually works. Everyone has gotten so used to electronic transfers that are faster and a little easier to understand. So what happens when you receive a check? How long does it take a check to clear in Kansas City? We at Cornerstone Bank want to help you make sense of the process.
What happens when I deposit a check?
So you’ve received a paper check, possibly from a one-time payment for work you’ve done, maybe from a distant family member. No matter where it is from now, you have a check that you need to get into your bank account.
You head to your bank and sign the back of the check when you get there. You fill out a deposit slip and hand it to the teller. Afterward, you receive your receipt and you’re off, but what happens now?
The funds aren’t instantly available. Depending on the check deposit terms when you set up your account, there will be some length of a hold time before the new funds are readily available to you. Your bank may allow partial availability, but this will depend on the specific terms of your account.
How long does a hold last?
This can vary between banks a bit. Deposit holds typically range from 2-7 business days, depending on the reason for the hold. For deposits made on weekends, funds are considered deposited on Monday. Ask to see your bank’s funds availability policy to better understand the hold periods on check deposits.
Why do banks put checks on hold?
Despite what you may think, we do this for everyone’s safety. It gives the bank or banks involved time to verify that this is a legitimate exchange that is taking place.
If you deposited a check and were able to immediately spend those funds, and it turns out that the issuer’s account had an insufficient balance, this would create an issue. Your bank would have to cover the cost if your account was overdrafted because of this. In turn, your bank may charge you an overdraft and returned check fee.
Although it can be a bit inconvenient, your bank is, above all, trying to protect all parties involved in a transaction.
Looking for a local bank in Kansas City? Choose Cornerstone Bank.
Since 2001, we have been a helpful partner to our customers across the Kansas City metro area, as well as the nation. We take pride in watching our customers thrive!
We always put our customers first, and that means giving them the best local banking Kansas City has to offer. We don’t believe in simple banking; rather, we go above and beyond to help our customers make their money work for them.
For more information, visit our Overland Park office or call us at 913-239-8100 to let us know how we can help.