Customer's deposit consists of $4000 personal check and a $4500 teller's check. We know the teller's check is a next day item and therefore not considered in placing hold unless using exception reasons that don't exclude next day items under $5000. The question is whether we can add the checks together, $8500, and use the large deposit reason. If so, how would that be done?

In the commentary it states: When the large deposit exception is applied to deposits composed of a mix of checks that would otherwise be subject to differing availability schedules, the depositary bank has the discretion to choose the portion of the deposit to which it applies the exception.

So does that mean we can use the large deposit reason and do it as $3500 for 7 days and $300 for 2 days? That's just holding the $4000 check and making $200 available but doing more than just a case by case of $3800 for 2 days.

From a prior post by BrianC:

The large item exception allows you to aggregate all checks deposited in a single day regardless of whether they are next day items or not. The minimum requirement is to provide $5,000 next day and the remainder within 7 business days.

229.13(b) Large deposits. Sections 229.10(c) and 229.12 do not apply to the aggregate amount of deposits by one or more checks to the extent that the aggregate amount is in excess of $5,000 on any one banking. day. For customers that have multiple accounts at a depositary bank, the bank may apply this exception to the aggregate deposits to all accounts held by the customer, even if the customer is not the sole holder of the accounts and not all of the holders of the accounts are the same.

I was editing my post when you answered. So based on my example we are giving full credit of the next day item and holding the personal check based on the large deposit reason using the $8500 as the total amount. Does this look correct?

When using the large item hold reason, it doesn't matter what check types you have. Based on your example, as long as you make $5,000 available the next day and $3,500 available on the 7th business day you are in compliance (assuming your policy states that you delay funds up to the 7th business day. If your policy says the 4th day, 5th day, etc. then follow your policy.)

Thanks. Our policy does state 7th day. If the next day item is only $4500, why do we have to make $5000 available next day?I thought making the $4500 and $200 of the other check would be all that was necessary next day and that would leave $300 to make available by the 2nd day and then the $3500 on 7th.

If you are combining a case by case with the large item hold then that is correct.

That is what I was doing. Thanks for clearing that up!