When Do Checks Typically Clear? Understanding Bank Account Transactions (2024)

The time it takes for a check to clear depends on a variety of factors, including the amount of the check, the type of check, the status of the account holder, and the time of day the check is deposited. In general, it takes one to two business days for a deposited check to clear, though banks are required by law to make at least $200 to $225 of the funds available by the next business day. However, there are some cases in which a check may be held for a longer period, such as if it is a large deposit or an international check.

How long does it take for a check to clear?

It usually takes one to two business days for a check to clear, but this can vary depending on several factors.

Firstly, the amount of the check can affect the clearing time. Generally, checks for amounts over $5,000, or $5,525 according to some sources, will take longer to clear. This is because the bank takes additional time to ensure everything is in order before releasing the funds.

The type of check can also impact the clearing time. Government checks, checks from the same financial institution as your own, certified checks, and cashier's checks are all examples of checks that typically clear faster, often within one business day. On the other hand, personal checks and business checks may take slightly longer to clear due to the higher risk associated with these accounts.

The day and time you deposit the check can also impact the clearing time. Many banks have cut-off times, after which they stop processing checks for the day. Depositing a check after the cut-off time could add an extra day to the processing time. Additionally, checks deposited on weekends or holidays may not start clearing until the next business day.

The status of your account can also be a factor. For example, if your account is new or has been overdrawn multiple times, the bank may hold the check for a longer period.

It's important to note that each bank has its own policies and procedures for check verification and clearing, so it's always a good idea to review your bank's specific guidelines.

Why might a check take longer to clear?

Checks usually clear within one to two business days, but there are several reasons why a check might take longer to clear.

Firstly, the amount of the check can be a factor. Banks are required by law to make the first $225 of a check deposit available by the next business day, but checks over $5,000 may take longer for the recipient to access. This is because larger checks must often undergo a more extensive verification process to ensure the payer has sufficient funds to cover the check amount.

Secondly, the age of the account can impact the clearing time. Accounts that are less than 30 days old may not be subject to the $225 rule, and checks deposited into these accounts may take longer to clear. Similarly, accounts with a history of overdrafts or bounced checks may also be subject to longer hold times.

Thirdly, the type of check can impact the clearing time. Checks from international banks usually require longer hold times because they take longer to verify. Checks deposited through mobile banking apps or ATMs may also take longer to clear, as they typically have to be verified and cross-checked before the funds can be released.

Finally, the day and time that a check is deposited can impact the clearing time. Checks deposited after the bank's cut-off time, which is usually 2 pm at the earliest, will usually be processed with the next business day's transactions. Checks deposited on a weekend or federal holiday will also take longer to clear, as these are not considered business days for banking purposes.

Depositing a check at a bank

Ensure the Check's Validity:

Before depositing, confirm the following details on the check:

• The name and address of the issuer.
• The date of issue.
• Your name.
• The amount of money.
• The signature of the issuer on the front of the check.

Visit Your Bank:

Take the check, your account number, and a valid form of identification, such as a driver's license or passport, to any branch of your bank. You can search online to find the nearest branch.

Fill Out a Deposit Slip:

At the bank, you'll find deposit slips, which are about the same size as a check. Write your account number and the amount of the check on the slip. There may also be space to request cash back. You can also ask the teller for assistance in filling out the slip.

Endorse Your Check:

Sign your name on one of the gray lines on the back of the check. If the check is made out to multiple people, they may all need to sign.

Approach the Teller:

Present the endorsed check and deposit slip to the teller. They may ask for your ID. Inform the teller of how much of the check you want to deposit and how much you want to receive in cash. The teller will provide a receipt for the transaction and may also inform you of your updated balance.

Note that it can take a few business days or even up to two weeks for the deposited amount to reflect in your account. Banks may hold the funds for longer for various reasons, such as large deposit amounts or verifying the legitimacy of the check.

Mobile check deposit

Here's a step-by-step guide on how to make a mobile check deposit:

• Open your bank's mobile banking app and log in to your account.
• Select the "Deposit" or "Deposit Checks" option.
• Choose the account you want the check to be deposited into.
• Take clear photos of the front and back of the endorsed check, ensuring that all four corners are visible and the amount is legible.
• Enter the check amount and review the deposit details for accuracy.
• Submit the deposit and confirm that it has been received by the bank.

It's important to note that there may be cut-off times for mobile check deposits, and funds availability may vary depending on the time of deposit, the type of check, and your bank's policies. Some banks may offer immediate funds availability for a fee, while others may have a standard hold period of one to two business days before the funds are released.

To ensure a smooth mobile check deposit process, it's recommended to follow these best practices:

• Use a dark-colored, plain background when taking photos of the check.
• Ensure the check is well-lit and all four corners are within the frame.
• Position your camera directly over the check, not at an angle.
• Sign the check and include the required endorsem*nt, such as "For Mobile Deposit Only" or "For Deposit Only".
• Keep the paper check for a few business days after the deposit in case there are any issues or further verification is needed.

What is a Cashier's Check?

A cashier's check is a safe way to make large payments. It is a check drawn from a bank's own funds, not the customer's, and is signed by a cashier or teller. The bank guarantees the funds, making it a safer form of payment than one from a personal account.

Cashier's checks are typically used for large purchases, such as a car or house, when a debit or credit card cannot be used, and using cash is risky. They are also useful when a person or merchant won't accept a personal check or cash. The checks have extra security features, such as watermarks and sometimes signatures by two bank employees, that make counterfeiting more difficult.

To get a cashier's check, you need to know the exact amount and the recipient's name. You then visit a nearby bank branch or credit union and pay the teller the amount you want the check made out for. The bank will print the check to the person or business you have indicated. Most banks charge a small fee for issuing a cashier's check, typically less than $10.

Cashier's checks are considered more secure than money orders and are often requested by landlords for security deposits. They are also useful for online purchases, as they provide additional confidence that funds are secure and reduce the risk of fraud.

Frequently asked questions