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    Why does Wells Fargo Bank put a lengthy hold on deposits that are greater than $5,000.00 and out of state bank?
    I made a $16000.00 deposit yesterday and I cannot use all funds until 11/30. A small portion (4900.00) will be available on 11/20/09. I argued with the branch manager who was claiming the delay was because it is an out of state check (portion of estate payoff). I told him that I could go out of state and write a personal check and that the check will be paid as soon as presented to Wells Fargo with total time of maybe 48hrs. Is this standard practice of banks to hold large deposits on personal checking accounts this long? Or am I getting hosed by Wells Fargo Bank? Is Wells Fargo just wanting to use my money for several days?
    10 months ago 4 Answers

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    It's one of those old procedures that's stuck through technological updates. Most commonly, the answer is that they need to wait for the check to clear. However, in today's day and age when most things clear overnight, the banks are using the float. Another reason they may hold it is that the check presented may be fraudulent, and that would a logical rationale to holding a check. If you have the time, you may want to go to your bank and sit with a rep to have them check with the clearing bank to see whether or not the funds have cleared. I've done this in the past, and typically, the manager has the authority to release the funds once they can verify that the check was paid.
    a few seconds ago

    Other Answers

    • Most banks put long holds on large dollar volume checks. Especially when these checks are from out-of-state. It's because if the check is bad, it takes about two weeks for the check to be returned to the bank where you cashed it. After the bank where it's drawn determines that the check won't be paid it has to be returned to its regional Federal Reserve Bank. And then they sort through them and return it to your bank's regional Federal Reserve Bank. And then they sort through them and return it to your bank. And then they have to sort them and enter the information. If the bank where it was drawn on has a branch in your area, I would have cashed it there. Then you could have taken the cash to Wells Fargo and deposited there. I had to do the same with a large check drawn on Wachovia and then deposit the cash at BofA.

      by shoredude2 - 10 hours ago

    • The bank prob has it. Just trying to leach as much interest off it until you're able to get you're hands on it

      by Tricia - 10 hours ago

    • Each bank sets its own conditions on funds availability. These holds are due to the extensive incidents of counterfeit and NSF checks. Your deposit will ultimately be "back credited" to the date you made it; the funds just aren't available until the waiting period ends.

      by kj566 - 10 hours ago

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