Why do banks always put new account check holds for 9 business days instead of 5 days?
By the 5th business day the check should clear.
- LLv 52 months ago
You need to discuss this with your bank. It appears every bank has their own rules about this.
- Anonymous2 months ago
Because new accounts are more risky. And checks can clear and then be pulled back if they are determined to be fraudulent.
I had my account debited by a collection agency a few weeks ago. The credit union paid it and charged me a $32 overdraft. It was not my bill and I did not authorize it. So I disputed it, signed something and they removed it.
You could deposit a stolen check and it clears but it still be fraudulent.
Look up "chexsystems" I have a feeling they are in your future.
- StephenWeinsteinLv 72 months ago
If it bounces (doesn't clear), they don't find out by the 5th business day.
- 2 months ago
Why do all credit cards now require a week for a payment to clear before they reinstate your credit?
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- WilliamLv 72 months ago
Because it's a NEW ACCOUNT. They need to research YOUR financial records to determine your fiscal responsibility, or lack of it.
Once that information is verified I'm sure future checks will be only 5 days.
In the meantime...CHILL.