Allow me to rant a moment - why does it take a check 9 days to clear

[The Straight Story]

From one giant bank to another?

I worked for the #2 bank for 5 years, got laid off and got some money coming to me. Since there are no branches for that bank where I live I opened a new account at a bank here in So. Cal.

The check was written to my by the bank, I opened a new account here and was told it would take 9 days to post to my account.

Now I know enough that these things are electronic (and with the new law once a bank has the paper check all they have to do is use the check image and it is as good as the original, I helped install systems at previous bank when the law passed).

It is holding me up paying bills and getting things like groceries (I should be ok until Friday, but still...).

According to the website when I log in, the check has cleared, but won't post until Friday - so someone is making interest off my money, and it ain't me.

(Two points - the check was >10k and I was a new customer, so I can see a 4 day hold until clear which is standard)

[Jade Fox]

1. You know what the hell of it is?

The bank gets to use your money while they wait for your check to "clear". Oh wait, I see you said that in your post.

Never mind. :)

[Flaxbee]

2. we signed up with a bank that did that to us -- First Citizen

It was 11 days, the check was $5K, and it had been written on a Chase Manhattan account. Very, very obvious that FC knew immediately the check was good, but they held it for close to two f*cking weeks, not telling us the hold would be so long until AFTER the check had been deposited, and I really had no clue that holding a check for so long was even an option.

As soon as the check cleared, I went in, withdrew it all, closed the account and went elsewhere. FC was just enjoying the interest.

[The Straight Story]

3. Thanks - at least I am not the only one :)

I won't close the account here, need a local bank. And mine was written on chase as well...

I have an account with chase, but no way to get it deposited locally. It would have been faster to sign it and fed ex it to my bank back in Ohio...

[lizziegrace]

7. I wish you'd have contacted me

I could have gotten it into your Columbus account. :(

[cynatnite]

4. They can't pick up a phone and call the other bank?

I remember they used to do that. Someone writes you a check, teller calls the other bank to verify the funds were available. Took less than five minutes.

Why don't they do that anymore?

[The Straight Story]

5. Hell, they CAN do it via computer - they just want to tie up the money

Even some stores now verify funds in your checking account on checks and can tell you it is declined if the funds are not there/

They can - the question is why don't they??

It even says cleared on the web site but no funds available. Seems a tad shady to me....

[Gormy Cuss]

6. Lovely racket, isn't it?

"Check 21" effectively cut off any float for consumers but did nothing to reduce the maximum time that a bank can put a hold on the funds. It is supposed to be reviewed and adjusted in the future if electronic processing is shown to reduce the clearing time, but AFAIK it hasn't been done yet.

[Kali]

8. and you know they clear any check YOU write the same day,

so no floating for a day or two if you are short anymore.

[Wapsie B]

9. Ah banks and their sleazy lobbyists are wonderful aren't they?

It's the Golden Rule in effect, those who have the gold make the rules.