Can we place a hold on a CD for a large check deposited to a checking account for which the customer needed immediate credit?

If you have the following clause in your availability disclosure:

C-7--Holds on Other Funds (Other Account)

If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

Thanks for the information. I checked our disclosures and we have the same verbage.

Unless that CD is approaching maturity or the bank has a liberal pre-maturity withdrawal policy, doesn't the hold seem a bit in the "overkill" category? Did it buy you anything you didn't already have in the way of protection if the check came back dishonored?

I'm not suggesting that what you did was wrong, just questioning if it was necessary.