How Long Does It Take For A Check To Clear?
Check out the seven factors that can affect how long does it take for a check to clear and how long you have to wait before you can access the deposited money.
Table of Content
- 1 How long does it take for a check to clear?
- 1.1 1. Direct Deposit gives same-day availability
- 1.2 2. 2 to 7 days for large deposits
- 1.3 3. More delay in case of any suspicious transactions.
- 1.4 4. Mobile Deposits prove faster
- 1.5 5. A Customer-Bank relationship.
- 1.6 6. Bank Policies play a vital role in deciding the time of check-clearing.
- 1.7 7. At most 5 business days for online banks
How long does it take for a check to clear?
1. Direct Deposit gives same-day availability
Receiving a recurring check, like a paycheck or Social Security benefits check, is easiest through direct deposit. It provides you with the fastest access to your money easily. Through direct deposit, the money is transferred from another bank to your bank account. The bank is generally not concerned to verify the funds coming into your account again after the first deposit has been made. This means the fund is available the same day.
2. 2 to 7 days for large deposits
Have you ever noticed that it’s easier to get your hands on the first $200 of your deposit but there is a visible delay on deposits larger than $5,000? This is due to the 1987 law that any deposit above $5,000 is known as large deposits. A bank is allowed to hold a check for some time deposited for greater than this amount. The amount of time is between two to seven days but depends on the type of check and bank too.
3. More delay in case of any suspicious transactions.
Any large deposit check will be kept by the bank for verification and other processes. This time period will be extended if the bank finds anything suspicious about your check. In case, your check is dated six months or more in the past, the bank will conduct further inspections. The bank can also check for any fraud if you have a new account and make repeated large deposits.
4. Mobile Deposits prove faster
Yes, mobile deposit is a fast mean to clear your check. A lot of banks including Bank of America, Capital One, Wells Fargo and Chase, etc. have apps that enable you to upload pictures of your check for deposit. The whole process of verifying the uploaded mobile check deposit takes up to one day.
5. A Customer-Bank relationship.
A good Customer-Bank relationship can help you get your check cleared faster. If you have been doing “business” with your bank for a long time without any major issues, the bank might take it into notice. As a result, they might shorten your clearance period.
6. Bank Policies play a vital role in deciding the time of check-clearing.
Bank Policies vary from bank to bank and therefore, the period of check-clearance also varies from bank to bank. Even so, all the banks generally add funds to your account on the same day if you deposit the check before their cutoff time.
7. At most 5 business days for online banks
Using an online bank account, you can mail your check or wire transfer or upload the picture of your check through the bank’s app. The deposit hold time for online banking is almost same as the normal banks. Some banks allow you to cash $200 on any check within 24 hours and over $25,000 within 5 business days of deposit.
Wells Fargo provides great services though mobiles. You need to have routing number for Wells Fargo to do various kinds of transactions.