|
|
Local Bank - Availability of Funds Delay, Large Check?
11-17-2018, 08:58 AM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,148
|
Local Bank - Availability of Funds Delay, Large Check?
We don't need the money quickly, but I was a little surprised when depositing a large Cashiers Check (6 figures) from another bank yesterday WRT availability of funds. The full amount won't be available for 12 days That seems unnecessarily long? I might understand a personal check or if we'd ever had account issues, but for a Cashiers Check from a Bank?
11/16 Deposit (afternoon)
11/19 $200
11/20 $4800
11/28 $xxx,xxx.xx
I guess it works out to 6 business days with a late day deposit, weekends and a holiday. Bad timing on our part.
I had to talk to an actual banker with a big cushy office to make the deposit and discuss a subsequent wire transfer. I've used the banks online customer portal for years (to transfer dividends out, view transactions), and it was clear she didn't know ANYTHING about their customer online portal. She had to call someone to answer my online service questions.
They won't be our bank much longer so not worth a fuss, I was just surprised at how backward smaller local banks can be. Large amounts clear much faster at global banks, brokerages, even online banks...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
11-17-2018, 09:08 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
|
There is a lot of fraud with cashiers checks and wire transfers these days. Banks are increasingly cautious in accepting and making deposits available.
|
|
|
11-17-2018, 09:10 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,806
|
Quote:
Originally Posted by Another Reader
There is a lot of fraud with cashiers checks and wire transfers these days. Banks are increasingly cautious in accepting and making deposits available.
|
+1.
Just because it says "Cashiers Check" on the face, how is your bank supposed to know that for certain? They are protecting you by requiring a delay.
To avoid this, use a wire or ETF. Those include an electronic 'handshake' to the originating bank, so they have confirmed the funds and are fully committed.
You might, might have been able to have your bank call the other bank to confirm? I don't know if that works.
-ERD50
|
|
|
11-17-2018, 09:14 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,127
|
I think anything that involves "cash" for a decent amount might raise a flag.
I know, a bummer since it is your money, who the heck should care? But we live in a guilty until proven innocent society .
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
|
|
|
11-17-2018, 09:15 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,148
|
Quote:
Originally Posted by ERD50
+1.
Just because it says "Cashiers Check" on the face, how is your bank supposed to know that for certain? They are protecting you by requiring a delay.
To avoid this, use a wire or ETF.
-ERD50
|
To the first part fair enough.
To the second - long story but the originating TX bank wouldn't do one large wire transfer unless I appeared in person (1200 miles away). Remotely my choices were pay $22 for each $5K wired or take a cashiers check (worked out to over $1600 to wire it all). And I will wire transfer the full amount to the final account for $20 - after it clears 12 11 days from now...
And I transferred a similar amount from Chase to our online bank two weeks ago from my home PC in my (figurative) bathrobe and fuzzy slippers without delay, without talking to a human - at $0 charge.
So I guess I'm comparing a fresh virtually identical experience working with Chase vs local banks.
Again, local banks. Again, we'll wait.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
11-17-2018, 09:17 AM
|
#6
|
Moderator
Join Date: Jul 2017
Posts: 5,598
|
Quote:
Originally Posted by Another Reader
There is a lot of fraud with cashiers checks and wire transfers these days. Banks are increasingly cautious in accepting and making deposits available.
|
This makes a lot of sense. I guess I'd rather my bank be cautious then having money which I did not withdraw disappearing from my accounts.
__________________
Use it up, wear it out, make it do or do without.
|
|
|
11-17-2018, 09:21 AM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,972
|
I have banked for many years at one of the largest banks in US.
I had a check (USD) from my foreign account, it took over 30 days to get the money in my account.
It was not just a hold on it, they actually sent the check to the other bank to be verified.
It cost me $100 for that "service". Both banks charged me to verify the check.
Now I only deposit up to $3,000 per check so I don't trip their rules.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
|
|
|
11-17-2018, 09:22 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,806
|
Quote:
Originally Posted by Midpack
To the first part fair enough.
To the second - long story but the originating bank wouldn't do one large wire transfer unless I appeared in person (1200 miles away), or paid $22 for each $5K wired so I had to take a cashiers check. And I will wire transfer the full amount to the final account for $20 - after it clears 12 11 days from now.
|
Well, in that case you are stuck with the delay. But that delay really is there to protect against fraud. The words "Cashier Check" on a piece of paper don't create any sort of magic security against fraud.
Would the originating bank make out the check to your final account? That would avoid one delay. I suspect they would want that in person as well though, but maybe not if it is titled the same as the name they have for you?
-ERD50
|
|
|
11-17-2018, 09:27 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,148
|
Quote:
Originally Posted by ERD50
Well, in that case you are stuck with the delay. But that delay really is there to protect against fraud. The words "Cashier Check" on a piece of paper don't create any sort of magic security against fraud.
Would the originating bank make out the check to your final account? That would avoid one delay. I suspect they would want that in person as well though, but maybe not if it is titled the same as the name they have for you?
-ERD50
|
Of course I explored all my options. I can assure you the way I've gone was the only way short of spending $1600+ for wire transfers or $400-500 for plane fare - which seemed ridiculous.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
11-17-2018, 09:27 AM
|
#10
|
Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,944
|
This is one of the reasons I like having free wire transfers via Ameritrade. (Although they have called me on the phone to verify in two cases: Once when doing a large transfer - almost 6 figures, and once when I initiated to outgoing transfers about 30 minutes apart.)
|
|
|
11-17-2018, 09:39 AM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,836
|
I've made some pretty large 6 digit cashier check deposits at my local "hick town" bank and the funds have always been available "no later than the next day". It's never been a problem. Now I have been with this bank a long time and I do carry enough of a balance in my accounts to cover the deposit. Maybe that makes a difference.
|
|
|
11-17-2018, 09:52 AM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Posts: 11,701
|
I closed out a credit union account, went across the street to the other credit union with the check, and got the same story (about 2 weeks). Also got the third degree asking me if I knew the party issuing the check. Yep, it was me. I know me.
Doesn't matter. He explained all the fraud and for our protection, blah, blah.
Funds were credited, just not available.
|
|
|
11-17-2018, 10:21 AM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,806
|
Quote:
Originally Posted by Car-Guy
I've made some pretty large 6 digit cashier check deposits at my local "hick town" bank and the funds have always been available "no later than the next day". It's never been a problem. Now I have been with this bank a long time and I do carry enough of a balance in my accounts to cover the deposit. Maybe that makes a difference.
|
Absolutely makes a difference. I had to explain this to my son when he was depositing his 2 and 3 figure paychecks from his high school part time job.
If you have $100 in the account, and deposit a $40 check, and withdraw $40, you appear to have "cashed the check" w/o delay. But you really made a $40 withdraw from the $100, and have $60 available, and will have $100 available after the check clears. If you had $20 in the account, they would not let you draw $40 until that check cleared.
If you tried to take the account near zero, I doubt they would let you until the deposit cleared. Unless the deposit came from the same bank - they may treat that as a transfer, they 'own' the funds either way.
-ERD50
|
|
|
11-17-2018, 10:42 AM
|
#14
|
Moderator Emeritus
Join Date: Sep 2007
Posts: 17,773
|
We refinanced for cash with Chase long ago and deposited the Chase cashier’s check into our Chase checking account after the closing. The funds weren’t available for two weeks because Chase suspected fraud.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
|
|
|
11-17-2018, 10:44 AM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,931
|
That’s a real pain. Unfortunately cashiers check fraud is common. When I sold a vehicle I went to the buyers bank with him to get the cashiers check.
__________________
Retired since summer 1999.
|
|
|
11-17-2018, 11:11 AM
|
#16
|
Full time employment: Posting here.
Join Date: May 2013
Posts: 725
|
I'm not surprised at all.
When I recently opened an account at CapOne 360 to take advantage of their $500 bonus they listed a 5-day delay on the initial transfer and when I called they confirmed that and added that every subsequent incoming transfer would be held for 4 days before it would be available. That seems so strange to me given the electronic connections financial institutions have.
Glad I have other options.
__________________
“If you don't do it this year, you will be one year older when you do.” - Warren Miller
|
|
|
11-17-2018, 11:14 AM
|
#17
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,972
|
These days there is even fraud with bank to bank transfers, so banks are super cautious handing out the $$$.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
|
|
|
11-17-2018, 01:43 PM
|
#18
|
Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 3,678
|
We just had this same issue with DiscoverBank but this was with their Mobile Deposit.
A few days after the upload $200 was available, then 2 days after that another $4800, then 5 days after that, the balance.
__________________
Married, both 69. DH retired June, 2010. I have a pleasant little part time job.
|
|
|
11-17-2018, 02:33 PM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
|
Money laundering is another concern. There are gummint rules but following them is not a safe harbor. The feds will fine a bank if they suspect money laundering, so all banks are paranoid.
Depositing a check followed by an immediate wire transfer is an additional red flag.
Finally, banks are increasingly trying to help prevent scams perpetrated on elders. In this bank's case that may have been the reason for the interview.
None of what happened is any reflection on you. The bank is just following its rules, though you are free to consider them to be excessive.
|
|
|
11-17-2018, 03:22 PM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,096
|
I have had to deposit some large checks in the last several months and done in across a local bank, a credit union, and an online bank. The local bank was the fastest to clear the funds, 2 business days. The credit union was the longest, 7 business days (they did make a small amount of it available within a business day). The online bank was 3-4 business days.
Since I did not have an immediate use/need for money the delays were no big deal. I understand they can technically clear them faster, but these days I can accept erring on the side of caution for fraud protection purposes.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|