What's an average wait time for large checks deposited?

 

  I just sold some stocks so that we could finally pay off our mortgage
completely.  I got the checks from scottrade in the mail yesterday, and went
to deposit them.  I was told there would be a delay before the funds would
be available.  I figured it would be maybe 3 days.  They told me it would be
5, so I figured max of 1 week including the weekend.

  When I got home, I noticed that the receipt said the funds would be
available OCTOBER 1, not the 5 days I had been told.  So now I have to wait
a full two weeks before paying off the mortgage, which seems excessive.
It's a whole half month they get to keep my $ and I can't do anything with
it.

  Now I'm remembering that we had to wait a whole week when we deposited our
tax refund, and that was directly from the US Treasury.  The US Treasury and
Scottrade are well known, trusted entities, so why in the world are they
making us wait so long for funds to be available?  What is the purpose?  I
thought they usually just scanned the checks and transferred the funds in a
day, like a wire transfer.

  Are these normal wait times at banks for "large" deposits of around $11k?
I'm wondering why the cashier told me 5 days, but it turns out to be 15.


LONGER DELAYS MAY APPLY

In some cases, we will not make all of the funds that you deposit by check
available to you on the same business day as the day of your deposit.
Depending on the type of check that you deposit, funds may not be available
until the fifth business day after the day of your deposit.  However, the
first $100.00 of your deposit will be available no later than the first
business day after the day of your deposit.

If we are not going to make all of the funds from your deposit available on
the same business day as the day of your deposit, we will notify you at the
time you make your deposit.  We will also tell you when the funds will be
available.  If your deposit is not made directly to one of our employees, or
if we decide to take this action after you have left the premises, we will
mail you the notice by the business day after the business day we receive
your deposit.

If you will need the funds from a deposit right away, you should ask us when
the funds will be available.
In addition, funds you deposit by check may be delayed for a longer period
under the following circumstances:
We believe a check you deposited will not be paid.

You deposit checks totaling more than $5,000.00 on any one day.

You redeposit a check that has been returned unpaid.

You have overdrawn your account repeatedly in the last six months.

There is an emergency, such as failure of communications or computer
equipment.

 


I think you are getting hosed by your institution. I just deposited
$41K in three checks and they cleared overnight. If they were foreign
checks it could take over four days, but it doesn't sound like it is
in your case.

 


Agreed. In Canada, when I've deposited checks in person, if they are
major institutions like Insurance companies, gov't etc, they would
clear them immediately. Everything that goes through the ATM takes a
week.

James

 



completely.

Brilliant timing.


them.  I was told there would be a delay

told me it would be 5, so I figured max

OCTOBER 1, not the 5 days I had been

And it remains to be seen whether they will have gone bust by then.


Or maybe for years.


can't do anything with it.


Not quite on the same level with financial markets imploding rather spectacularly
and operations like Lehmans that have been around for 130 years and which
survived the great depression fine, going down the tubes in a single weekend.


 What is the purpose?

There might just be a tad of a problem with liquidity currently.


day, like a wire transfer.


wondering why the cashier told me 5

Because the shit has hit the fan just a tad.


later than the first business day after the

Or the financial markets are in meltdown.

 


  I have had excessive delays on large checks also, at 2 different banks.  
I have even changed banks over this once because the delay appeared to me
to be BS.

  And if Congress passes yet another law regulating behaviour of
businesses, in this case the industry will have only itself to blame.

  Tell your congressman and your senator about this.  Your Congressman is
running for re-election, unless retiring instead.

 - Don Klipstein (don@misty.com)