Working at a new financial institution and something that I am not used to:

When a personal customer opens a new account, there is a small hold on all deposits for the first 30 days.

When a business customer opens a new account, the is NO hold placed. All funds, from Day 1, are available immediately. Now, that's not to say there might be an exception to the rule. But generally speaking.

So, kid opens a new account and $10.00 check from Grandma is held, but ABC Company opens a new account and $25,000.00 check from XYZ Business is not held?

Is this more common than I think?

My experience is that the vast majority of new account fraud is from consumer accounts since they are so easy to open. To take the extra steps to set up an LLC and such tends to deter many of the fraudsters.

That said, there are exceptions to that as well. At my bank we do holds on a case by case basis so no blanket hold policy.

PS. Maybe I am missing something but I don't believe you can hold the $10.00 since it is under the Reg CC hold amount.

OP here:

I didn't think about Reg CC when I mentioned the $10.00; you are right.

But to my point, they could deposit a check much, much smaller than a business and have a hold placed automatically.

And I agree; there's a lot of hoops to jump through to open a business account, but I know this institution has been burnt in this exact scenario.

RockChucker, the $225 next day availability for case by case holds does not apply to new account exception holds so the bank could hold a $10.00 check provided that it was not one of the next-day items identified in 229.10.

Good catch Brian! Is 2020 over yet?! 😂

Some banks apply the same funds availability policy to individuals and businesses. Others have separate policies. As long as they all conform to Reg CC, there's no regulatory problem. It's a matter of risk analysis.