The digital age has transformed banking as we know it. Still, there are plenty of occasions when people may use physical paper checks to send and receive payments. However, payments from checks aren’t normally available immediately. Understandably, you may be wondering, “How long does it take for a check to clear?” Show
When do checks clear?By law, banks are required to make at least the first $225 of a personal check deposit available for use by the next business day. Note that certain checks may take additional time, particularly if it’s an international transfer as those may take longer to verify. Procedures for check verification typically vary from bank to bank. Certain types of checks are designed to clear faster, often being available in full by the next business day. These include:
What is a business day?Keep in mind the distinction between business days and calendar days. Calendar days generally denote any 24-hour period from midnight to midnight. Business days, on the other hand, refer to days when the bank is open for business — weekends and bank holidays are not considered business days. A business day typically ends at the same time the bank's business hours do, and some institutions may even have an earlier cutoff time for check deposits. Deposits made past that time will usually be part of the next business day's transactions. Do checks clear on Saturdays?Business days don’t typically include weekends or holidays. That means a check deposited Friday night after business hours will be treated as if it were deposited Monday morning (if it isn’t a holiday). Some financial institutions may advertise extended business hours or days. This is at their sole discretion and may not always apply. You may wish to consult with your local bank for their policies on this. Do checks clear on bank holidays?As the name implies, banks and other financial institutions are normally closed on bank holidays. As such, bank holidays typically don’t count towards a check’s clearing time. Why is my check delayed?There may be times when clearing a check takes longer than usual. This normally happens when the bank needs to take extra steps verifying the transaction. Common causes of delay include:
In summaryLet’s return to our original query, “How long does it take for a check to clear?” As you see, the answer typically depends on a combination of factors: when the check was deposited, what type of check it is, and where it came from. When someone cuts you a check, you might want that money to be available as soon as you deposit it — but banks need to verify every check’s validity before they can release the funds. How long a check takes to clear depends on the bank. It usually takes about two business days for a deposited check to clear, but in some cases, it can take up to five days for funds to become available. Find out how long it takes a check to clear depending on the financial institution, why a check might be on hold, and the fastest ways to access your funds. More From Your Money: Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today. How Long Does It Take for a Check Take To Clear?Typically it can take two business days for a check to clear, but can vary. Here’s a quick look at how long it takes for major banks and retailers to clear or cash checks: How Long It Takes for a Check To ClearBank or RetailerTime To Clear or Cash a Check  Earn Perks With A New Checking Account
Why Your Checks Might Be on HoldThe following factors can affect the time it takes for a check to clear and how long you have to wait before you can access the deposited money. Large DepositsThe 1987 law that gives you rapid access to the first $200 of your deposit also delays clearance for deposits of more than $5,000, which it categorizes as large deposits. The length of time a check is held depends on the amount, type of check and institution, but two to seven days is typical. Suspicious TransactionsBecause deposits are held for bank verification purposes, if there’s something suspicious about your check, you might have to wait longer for your funds. For example, if your check is dated six months or more in the past, it might warrant further scrutiny. Earn Perks With A New Checking Account Varying Bank PoliciesThe amount of time a check takes to clear can vary based on bank policy. Most banks will credit funds to your account the same business day if you make your deposit before the daily cutoff time; however, you might not be able to withdraw the money immediately. History of OverdraftHow long it takes a check to clear is also dependent upon the account’s overdraft history. If the account has repeatedly overdrawn during the previous six months, the financial institution may delay making the funds from that check available. Insufficient FundsFor the check to clear, the payer must have the funds available. As the payee, it is your responsibility to make sure the check is good for the amount. If you deposit a check and it is later found insufficient — that is, the depositor’s account balance is inadequate to cover it — the bank can reverse the funds.
Earn Perks With A New Checking Account What Are the Fastest Ways To Access Funds From Checks?If you need to access the funds from a check as soon as possible, you’ll want to consider how long it takes for a check to be deposited through the methods that are available. Here are a few ways to ensure the speedy delivery of a check into your account. Set Up Direct DepositDirect deposit is the most efficient way to receive a recurring check — such as your paycheck — and it gives you the quickest access to your funds, as well. When you set up a direct deposit, money gets transferred from another bank directly into your account. Your bank doesn’t have to verify the incoming funds again after the first deposit, and the money is typically available the same day. Make a Mobile DepositMaking a mobile deposit is another fast way to get your check to clear. Most major banks, including Chase, Wells Fargo, Bank of America and Capital One, offer apps that enable you to take a picture of both sides of your check, enter relevant information, and send it to the bank. Funds from mobile check deposits are often available the next business day. Put Your Good Customer Status to UseIf you’re a longtime customer and haven’t had any deposit issues, your bank might reward you with shorter clearance times. If you have a history of being reliable, your bank might trust you enough to speed up the process. Use an Online-Only BankIf you have an account at an online-only bank, you can typically remotely upload checks via the bank’s app to make deposits, which is much faster than mailing in the check or wiring the funds. Ally Bank’s eCheck Deposit service, for example, enables you to deposit checks electronically. This article has been updated with additional reporting since its original publication. View Sources Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
Share this article: By John CsiszarJuly 30, 2020Related Articles
Earn Perks With A New Checking Account About the AuthorJohn CsiszarAfter earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients. Are mobile check deposits available immediately?Unless a hold is placed, deposits on a business day before cutoff time will be processed that night and are generally available the next business day.
Why is it taking so long for my mobile deposit to go through?When you deposit a check from your mobile device, it may take a little longer for your funds to become available based on what time of day the deposit was made. For example, mobile check deposits made after 6 p.m. Pacific time on business days to at least one major bank can't be used until two business days later.
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How long do mobile deposits take to clear
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