I know I should know the answer to this, but are funds that are ACH'd to an account immediately available for withdraw?

No doubt about it - immediate credit item.

Thanks! (I didn't realize I logged out, sorry!) Is that Reg E or NACHA?

Reg CC

Thanks! I just found that!

Sometimes I swear my brain takes a break at the worst possible time!

Thanks again Paragon and Jokerman!

This does not apply to commercial accounts does it??

Reg CC does not - but ACH credits are final - period - regardless of account. They, basically, have the same status as wire transfers - final payment is made when the originator presses the send button.

From the ACH Operating Rules:

Section 4.4.1, Subject to its right to return or reject entries in accordance with these rules, each RDFI must make the amount of each credit entry received from its ACH Operator available to the Receiver for withdrawal or cash withdrawal not later than the Settlement Date of the entry, with the following exception. Each PPD credit entry that is made available to an RDFI by its ACH Operator by 5:00 p.m. (RDFI's local time) on the banking day prior to the Settlement Date must be made available to the Receiver for withdrawal or cash withdrawal at the opening of business on the Settlement Date. For purposes of the preceding sentence, opening of business is defined as the later of 9:00 a.m. (RDFI's local time) or the time the RDFI's teller facilities (including ATMs) are available for customer account withdrawals.

From the ACH Operating Guidelines:

Section II, Chapter IV, D. (OG 54-55)
It is recommended that credits be posted or at a minimum, memo posted, prior to opening of business of Settlement Date; however, credit entries could be posted prior to the Settlement Date if the RDFI cannot warehouse the entry. Regulation E and NACHA Operating Rules require that credit entries be made available for cash withdrawal by the customer on the settlement day.

PPD credit entries made available to an RDFI by its ACH Operator by 5:00 p.m. (RDFI's local time) on the banking day prior to the Settlement Date must be made available to the Receiver for withdrawal or cash withdrawal at the opening of business on the Settlement Date of the entry. (More detail on PPD credit entries...)

For all other credit entries, including PPD credit entries that are made available to an RDFI after 5:00 p.m. (RDFI’s local time) on the banking day prior to settlement date, RDFIs are required to make funds for these entries available for withdrawal or cash withdrawal on settlement date. An RDFI can satisfy its obligation to make such a credit entry available to a Receiver for cash withdrawal on the settlement date by making the entry available for withdrawal at the RDFI’s teller facilities by the close of business on the settlement date or at an ATM by midnight on the settlement date.

An RDFI is responsible for picking up ACH files that are made available to it by its ACH Operator during the afternoon. An RDFI that uses a receiving point is responsible for making sure that the receiving point picks up files that are made available by the ACH Operator during the afternoon and for ensuring that funds are made available by opening of business on settlement date.

(any errors are just my bad typing…)

I am not a banker, but was reading this thread, and wondered about something.

I've seen wording in the Deposit Agreement at some banks (yes, I'm one of those customers who DOES read every word of everything I get ) ... it says that "the bank is required by law to post electronic direct deposits as of the day received." However, even though a bank may receive the deposit a day before payday, they will not post it until payday because of the "effective date" that goes with the deposit.

Is this a conflict, or am I as a consumer missing something?

Agreed, Reg CC applies to business and personal accounts. However, it does not control availability of ACH items. Availability of ACH items, also as noted, is contolled by the ACH rules.

From the Commentary to 229.b:

4. The availability requirements of this regulation do not preempt or invalidate other rules, regulations, or agreements which require funds to be made available on a more prompt basis. For example, the next-day availability requirement for ACH credits in this section does not preempt ACH association rules and Treasury regulations (31 CFR part 210), which provide that the proceeds of these credit payments be available to the recipient for withdrawal on the day the bank receives the funds.

Ok - Reg CC applies, but does not preempt a more stringent requirement in the rules. Thanks.

When a bank receives an ACH file from its ACH Operator, does it also receive the funds with the file? Or is the file telling the bank that funds will be available to it as of the effective date? In this case, giving credit to a customer for an ACH entry received before the effective date would create a negative float for the bank. Or am I missing something?

You got it.

"Back in the day," when all SSA payments were effective on the third of the month (unless a weekend), it was not unusual for a bank to receive the ACH file on these payments as early as the 26th or 27th of the previous month. But the bank didn't receive the funds behind those credits for use at the Fed until the morning of the 3rd.

While some banks actually used to credit customers when the file was received, most made the funds available to the customer on the morning of the 3rd. Customers would often, however, call well before the 3rd to make sure the data had come in and the credit would be available on schedule. It's really amazing. The same people would call every month, even though the money had been showing up on time for twenty years!

I was curious about this, because of the language in some of the Deposit Agreements. Maybe banks should expand on the language that the direct deposits will be available on the day received ... perhaps explaining exactly what "the day received" is, because most customers would misinterpret the existing language.

My local bank would always give me credit for the direct deposit one working day before payday, even though other banks would not.