Banking question

[BookstoreEscapee]

Commerce, to be exact, but if there are any bank employees reading you might know...

I recently opened a basic checking account at Commerce. Started with $100, put in ~$700 more a couple weeks later, and switched my direct deposit over, which went through fine. However...

On October 1, I deposited 2 bank checks drawn from my other account at my credit union, for a total of $6680 (the ultimate goal being to open an ING savings account, and transfer my money and close the CU account). That transaction is still showing as a pending transaction (when I looked at my account online) and on Friday it said "3 day float"; now it says 1 day float. I also deposited an $840 check (a personal check someone wrote me) on Sunday, and it just showed up today, also as a pending transaction, and says "6 day float." What does "float" mean, exactly? Does it mean it will be available after that many days? They have a link explaining "pending transactions" but it does not say anything about the float. (Also, the "pending" amount is not actually the exact amount of the transaction, but it says that when it does go through, it will show the correct amount. I don't get that, but whatever.)

My actual balance is over $8000, but my available balance says only $1200. I have never seen a check take so long to become available in my account. Is this something I should be concerned about? Does it have anything to do with the fact that it is a new account (I don't see why that should matter, though)? Or is this going to happen every time I deposit a check?

I just paid a couple bills that haven't been cashed yet, and I still owe my mom rent, which I haven't paid because, while I know how much is in the account, I wasn't sure what exactly was available to write a check on. I am very careful about balancing my checkbook, and I know that checks are not immediately available, but nearly 2 weeks seems a tad, well, REDICULOUS!!!1!11! (:Dmy nod to PFB, where I will not be posting a letter;)) I usually keep more than enough in my checking account, but I don't want to end up bouncing a check because what I know is there is not actually available.

I haven't called them, because 1) I was waiting to make sure the $840 posted (I asked and the teller said it would post by this morning at the latest, which it did), 2) I was at work and I don't think I can log in to the bank site from there, and I wanted to be able to look at the screen if I was on the phone (I know I can't log into the credit union from work; I assume it's some kind of firewall thing) and 3) they are open until 8 on Thursday and Friday and I thought it might be easier if I talked to them in person.

[draggar]

Banks sometimes won't allow you to withdraw money deposited form a check right away, they allow time for the checks to completely clear so they don't end up losing money.

Be careful with the checks, you do NOT have the full amount and will get an overdraft fee if you take out more than they say you have available.

It sucks, but it's true.

Depositing cash and direct deposit usually don't have the same effect, they're usually available by the end of the day.

[FuzzyKitten99]

I worked for Wells Fargo for a while before being a SAHM.

Here's what likely happened with your account: You deposited checks in large amounts drawn on other financial institution accounts, and as you are a new customer, they are protecting your account as well as their interests (remember, they are a business too) by making sure the funds are verifyble and available. Many times, with large checks that are not certified or cashier-drawn (i.e. personal checks), there will be a hold 99% of the time. Especially since you are a new customer to Commerce. Wells Fargo does this often with new customers as well, until they become 'established' by maintaining their account for over 12 months with few to zero overdrafts. Other reasons for holds are your account has had several overdrafts within a certain time period, or your deposit habits are usually small, and then all of a sudden you make a large one, or if you make a large check deposit over a certain amount into a bank-owned ATM (if your bank has that option).

If you depostied the checks with a teller, the receipt would have stated that there was a hold on each of the checks, if the teller didn't tell you in person, which they should have. If you deposited them in a bank-owned ATM (Wells Fargo has this option, I don't know about Commerce), the receipt would not say so, but usually there is a notice on the ATM that a hold may be placed, but Commerce bank may have different policies.

What you can do, though, is if it has been 3 business days after the initial deposit, is call your bank, and ask them to remove the hold, after they call and verify funds with the bank the checks were issued on. Problem is that many banks now don't verify funds over the phone for anyone other than the accountholder(s) due to security and confidentiality. I know Wells Fargo won't. If the banks won't do it, then you have no choice but to wait. It sucks, but the bank is just trying to protect their interests by not accepting a check that may be bad and causing problems in your account where you go and spend the money and then the check itself bounces, and then so do all the purchases you made.

Hope this makes sense.

[BookstoreEscapee]

So, the fact that it is a new account and the size of the checks ($5000 and $1680) is likely a factor, then... I expected them to take a few days at least, but it's been 10 (including the weekend). I deposited them with a teller; I don't like to make deposits with ATMs. Actually, there was such a long line and only one teller that another employee asked who had straight deposits, and took it in the back, and then brought my receipt back out, so I did not actually talk to the teller at that time. When I deposited the $700 or so, it was my paycheck (after you switch direct deposit, the next pay is a live check, and then the next week it went direct to the new account) and cash, so I guess paychecks clear faster. I thought a bank check would clear faster than a personal check, though.

I still don't know what float means. I think I will stop over there after work and ask, and see if they can tell me when to expect the funds to be available, since they are open later tonight. Also I am going to get cash from the credit union account for my mom so I don't have to worry about her cashing my check.

For the record, I have never had an overdraft or bounced a check on any account. The worst thing on my credit report would be a few late credit card payments (like, less than 5 in the 10+ years I've had credit cards).

[FuzzyKitten99]

So, the fact that it is a new account and the size of the checks ($5000 and $1680) is likely a factor, then... I expected them to take a few days at least, but it's been 10 (including the weekend). I deposited them with a teller; I don't like to make deposits with ATMs. Actually, there was such a long line and only one teller that another employee asked who had straight deposits, and took it in the back, and then brought my receipt back out, so I did not actually talk to the teller at that time. When I deposited the $700 or so, it was my paycheck (after you switch direct deposit, the next pay is a live check, and then the next week it went direct to the new account) and cash, so I guess paychecks clear faster. I thought a bank check would clear faster than a personal check, though.

I still don't know what float means. I think I will stop over there after work and ask, and see if they can tell me when to expect the funds to be available, since they are open later tonight. Also I am going to get cash from the credit union account for my mom so I don't have to worry about her cashing my check.

For the record, I have never had an overdraft or bounced a check on any account. The worst thing on my credit report would be a few late credit card payments (like, less than 5 in the 10+ years I've had credit cards).

It isn't paychecks that clear faster. The bank has no idea that the check they gave you was from payroll. It has to do with the electronic clearing process that most banks now use. If the funds were not immediately verifyable at the time of processing by the teller, she would have known that, and should have told you. If not, it should have been on the receipt. All the check processing is done electronically via the numbers on the bottom of checks through scanners. They're printed with a magnetic ink that allows the machines that the tellers (and ultimately the federal reserve) process them through to be read accurately. Mistakes can and have been made with depositing funds into someone else's account, but they are *very* rare. I only saw it happen once in my 8 months at WF.

"Float" means that the bank is acknowledging the check was received for deposit, but they are not counting it in your 'available' balance, meaning money that you can spend without worry of overdrafting.

Overdrafts aren't counted on your FICO scored credit report, but a separate banking credit report called CheckSystems. Even then, you likely don't show up there even with overdrafts unless you had a severe overdrafted balance and the bank closed your account and you still owe them the money after a period of time.

[digilight]

Ok here's the skinny...Most banks set guidlines for how/when/where they place holds on checks. Out of state checks will recieve a hold placed on them, checks for over a certain amount will recieve a hold placed on them, and new accounts may be subjected to holds placed on them.

For the first part of your puzzle you have a deposit of $6680.00 (5,000 and 1680) now at Washington Mutual, at least my branch they set a point at which deposits will recieve a hold. I believe it was $6,000. and that hold was something like 7-10 business days. (remember sat and sun don't count). I've seen that pretty common at most banks. Now there are circumstances where that won't hold true, any ACH (Automatic Clearing House) deposits (Direct deposits, etc) will not have holds. But pretty much all large checks/deposits will recieve holds. For future reference have the larger checks split up into smaller amounts and make multiple deposits over a 2 or 3 day period (this was suggested to me by a couple of different bank employee's) but again don't get stupid with it to the point that red flags will go offf.

As for the second check (around 800 bucks) you deposited it on sunday (ATM since banks are closed on sunday) and it cleared wednesday morning. Most likely senerio is that the check is considered deposited on Tuesday (Remember Monday was a bank holiday, Columbus Day) so it technically cleared the next business day after you deposited it.

Most of the time the holds that you described are standard bank procedure that happen automaticially. Remember its also to cover your butt, if you are given a bunk check and go to deposit it, if you spend it before it bounces you are still liable for the fee's. A counterfit check can take even longer to bounce back, anywhere from a week to a month.

[BookstoreEscapee]

As for the second check (around 800 bucks) you deposited it on sunday (ATM since banks are closed on sunday) and it cleared wednesday morning. Most likely senerio is that the check is considered deposited on Tuesday (Remember Monday was a bank holiday, Columbus Day) so it technically cleared the next business day after you deposited it.

Actually, Commerce is open 7 days a week, and they were even open on Columbus day, but for the purposes of actually processing transactions beyond the point of the teller they probably didn't do anything until Tuesday (which I expected would be the case).

I will check it when I get home and see what's what. Thanks everyone for your expertise, though :)

[draggar]

I expected them to take a few days at least, but it's been 10 (including the weekend).

Don't forget that you're dealing with a bank, where do you think the phrase "banker's hours" came from? ;)

Don't count weekends and don't count the day it was done if it was done in the afternoon. You're looking at 7-10 business days (not including weekends or any kind of holiday).

[BookstoreEscapee]

Don't forget that you're dealing with a bank, where do you think the phrase "banker's hours" came from? ;)

Don't count weekends and don't count the day it was done if it was done in the afternoon. You're looking at 7-10 business days (not including weekends or any kind of holiday).

hehe, you do have a point. Well, I didn't have to go over there because I stopped at the ATM to get cash for my mom (from the CU account) and checked my balance and it is finally available.

So far, I can say that their tag line, "The world's most convenient bank" is not quite true. While it's great that they are open 7 days a week and until 8pm two days a week, so far the branch near me has had 1 or 2 tellers at the most and a line to the door all but one time I've been there. The one time I went out to my car and got my book from my bag, put on my iPod, and read several pages while I was waiting on line :rolleyes:. But once I get everything moved over and settled, I won't have to go over there very often so it won't matter so much.

[FuzzyKitten99]

Don't forget that you're dealing with a bank, where do you think the phrase "banker's hours" came from? ;)

Don't count weekends and don't count the day it was done if it was done in the afternoon. You're looking at 7-10 business days (not including weekends or any kind of holiday).

It really isn't so much the bank's issue, as the Federal Reserve. They're the ones that do the real financial processing of all transactions from all the banks in the country (US).