it’s MY money!
I was really looking forward to my first paycheck last Friday, and I actually took time out of my lunch to go pick it up and deposit it.
I didn’t realize until I got home and was doing some online banking that my paycheck was placed on hold for an entire week. Only $100 of the amount of the check was released to me. I was furious! What if I hadn’t had any money except the value of that check? It would have been one thing if it was held for two or maybe even three days, but a week?!? Seven days?!? Five banking days!?! What the??? If I had known they’d keep my money from me for an entire week, I wouldn’t have deposited the check.
When I called my credit union, they said it was because the check was drawn on a bank that isn’t local, and because my employer isn’t on some list they have. She also said I deposited it too late to go through processing on Friday (she assumed if I did it after 2:00, and when I told her I was walking away from the CU by 1:30, she said, "Oh, well you were still too late." I have half a mind to take my business somewhere else, but you know what? I’m tired. I am absolutely sick and tired of hopping from bank to bank because of bad customer service, or stupid fees, or asinine policies. I don’t know where else to go, and every place has its drawbacks.
Plus, my direct deposit should go through by the time my next paycheck would be given to me. So in the meantime, I’m not exceeding the limit that’s been imposed on me by the credit union. That means paying my car note the day it’s due. That also means paying my share of the household expenses later than I wanted to. If I hadn’t checked my account, I wouldn’t have even known about the length of the hold, and I would have spent the money by now. I’ve calmed down some since payday, but I’m still annoyed by the principle of the whole thing. It’s my money, after all.
That sucks. I also have an account with a credit union and they would hold checks for a couple days, but not a week. Credit unions are good for financing other stuff, but my main checking is with a major bank and I do my deposits in teh ATM and it’s really convenient AND the money is available the next day. Even when I deposit personal checks from out of state, I have no problems. I guess all banks have their pros and cons, we just have to figure out what works for us and what we can deal with.
Comment by S23 — January 29, 2008 @ 6:42 am
I had a similar experience with the bank I used in college–except it was all the money I had, and I needed it to pay rent and buy groceries. They held that check for two weeks on the “out-of-state” basis, though two reps told me they knew it was a good check. I wrote a rent check to my roommate based on the day they told me the balance would be available, she wrote a rent check to our landlord, and then the check didn’t clear, which meant my check to her bounced and her check to the landlord bounced. Luckily, she used the same bank I did, so with enough complaining and cajoling I could get her overdraft fees refunded as well as my own, but you can bet I switched banks right after.
You’re totally right that every place has its drawbacks, but after that experience, there was just no way I was staying with that bank.
Comment by English Major — January 29, 2008 @ 11:15 am
Try USAA. You can scan your checks to them. No needing to go down to some bank.
Comment by russ — January 29, 2008 @ 1:17 pm
The hold periods can sometimes vary from branch to branch. Back when I was with Bank of America, I used to walk an extra half-mile to go to the branch that was further from my house, because the one close to me had a 2-week hold on checks over a certain amount and the one that was further away had no hold. They told me that the hold period was something determined by the individual branch manager.
One other note if you decide to switch banks over this: be very sure that the account gets closed properly. When I left them, Bank of America didn’t process the close properly, and instead left the account open with a zero balance… which then proceeded to incur fees for being under the minimum. And they didn’t notify me about it until after they’d turned it over to a collections agency. This happened years ago, and it still makes me mad.
Comment by secret — January 29, 2008 @ 2:09 pm
I don’t allow banks to play with my money that way. That should be embezzlement of interest, IMO. Technology has changed the speed which these transactions occur. If they can bounce your check day 2 then they can put the funds in your account day 2.
I often have to deal with that madness because I deal with settlement checks that are usually not local. Last time I had a check from the L.A. county treasurer, I deposited it in a bank in L.A. (new account) and they put a 15 business day hold on the funds. I made the deposit in mid November and the funds wouldn’t be available ’til mid December. I didn’t have energy to battle so I waited until the following day.
Regardless of the bank I call the corporate office and the bank manager. I demand they release an amount I’m satisfied with immediately. I ocassionally have to threaten to close my account. Sometimes I may have to threaten a letter to the office of thrift or some other agency. Tell the bank you know the funds will clear long before the date they gave you. I once had a bank tell me that if I can get proof from the bank the check is drawn on that it has cleared they will release the funds when I present the letter. I told them if I do that and discover they delayed my funds unneccesarily I’d sue them for theft.
I’m actually willing to go to small claims and see if I could get the interest I was denied during the delay between the time the money left the 1st bank and the time it was credited to my account. The banks always release my funds before I have to do that.
I have noticed if you do the battle with the same branch, they get to know you and stop with the holds. Instead of changing banks it may be best to hash it out with the manager so they stop the madness.
Comment by call2arms — January 29, 2008 @ 5:51 pm
I’ve had checks held for five days before, but they were gifts, not a paycheck. Your bank is being ridiculous. I second Russ’ comment–everything I’ve read has USAA as the gold standard for banking and credit cards. I’m planning to switch to them soon, but I understand not wanting to switch again. It’s a huge pain.
Comment by ms. m&p — January 29, 2008 @ 7:28 pm
I’m sorry Sistah Ant but this would irritate me to no end. I’d be on the phone with SOMEBODY and they would be releasing (within 2 biz days) whatever I needed to pay my bills. With current technology, anything more than 2 biz days is absolutely ridiculous!! I agree, it’s YOUR money, and you should demand no less than the BEST service when dealing with YOUR money. Hmph! Forget THAT!
Dear USAA, oh how I love thee.
Comment by Single Ma — January 29, 2008 @ 8:12 pm
This is rediculous. List or not list there is not reason to hold a check for that long. Wasn’t the check 21 legislation supposed to speed up check processing?
Comment by tiredofbeingbroke — January 29, 2008 @ 8:16 pm