If a bank account hold has been placed on some of your funds, you may be wondering why this has happened and if there’s anything you can do to resolve it.
Let’s look at bank account holds and their reasons. Let’s also look at some steps you may be able to take to remove them yourself.
What is a bank account hold?
A bank account hold is a temporary delay that prevents you from accessing funds. When this happens, the funds may appear to be available in your account, but you can’t withdraw or access them.
How long does a bank account hold last?
The length of a hold depends on why it has been placed. For example, while the funds from in-person cash deposits are typically available immediately, non-cash deposits, including checks or online transfers, may be held between two and five business days, though this also often depends on the financial institution.
In other circumstances, such as when redepositing a bounced check, depositing funds into a bank account that is less than 30 days old or depositing funds into a bank account that’s been frequently overdrawn, a bank can hold funds for longer than the typical two to five business days.
According to federal regulations, funds from certain types of checks, including certified bank checks and U.S. treasury checks, must be available in one business day. Additionally, the first $225 of any check must be made available for withdrawal or check writing at the start of the next business day after your deposit.
Debit card holds
When you purchase something using your debit card, the bank or financial institution will place what is known as a “pre-authorization” hold on your account in the amount of your purchase. These holds are automatically lifted in three to four business days at the time your funds have been transferred to the merchant. This helps to ensure that you have the funds available to complete the purchase.
Common reasons for account holds
Common reasons you might experience a bank account hold include:
- Opening a new account at a bank or financial institution
- Waiting for a check to clear
- Waiting for a larger deposit or money transfer to clear
- Suspicious activity, such as an especially large purchase or a series of purchases in a different state
- Pending transactions that haven’t officially cleared with your financial institution
Removing a hold
In many cases, a hold will resolve itself after the standard waiting period of two to five business days. In other instances, you may have to contact your financial institution to pre-approve what they might believe to be a suspicious purchase or ask them to lift a hold you believe was placed in error.
Depending on the type of fund transfer, you may be able to take steps to reduce the delay time of some bank account holds. For instance, with paychecks, try setting up direct deposits with your employer. For larger checks, you can try receiving them as money orders, certified checks or cashier’s checks. If you’re concerned about debit card holds, you can always try using a credit card to pay for expenses or adding additional funds to your checking account ahead of purchases.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
