Quote:
Originally posted by psyko514
Dude, do you not understand the concept behind check holds?
It's to allow the check to clear. If a check bounces, it costs money to all those involved.
The length of the hold is decided by a few things. First and foremost is the bank's trust in you. If you've had bad checks before, or you have a poor credit history or a history of fraud done on your account, they'll put a hold on it. Also, if the check is coming from a foreign institution, it takes longer to clear, hence the longer hold period.
The bank isn't "playing" with your money, because they don't know if that money exists. They'd be taking a risk and subsequently a loss if your check bounces.
If your checks are being held for more than 30 days, you're getting raped.
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I worked for a bank for a few years.
Checks take 1 night to clear now if they are from Canada (for Canadian banks).
International checks can still take up to 5 days to clear, but average was around 3 days.
There is no reason for these insane 30 day holds... the onlly reason the bank gives is that someone could cancel the check and so the hold is to protect the bank against that. But that is also BS. The hold is there to have funds to play with for the banks... not that I have proof of that, but why else put a hold on the checks when the funds go thru the clearing house so quickly?