Learn More - Click Here!

New Reply Thread Options
#2247051 - 12/31/20 02:20 PM Holds on Deposits for NEW Business Accounts
Anonymous
Unregistered

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?

Return to Top Reply Quote Quick Reply Quick Quote
#2247070 - 12/31/20 05:09 PM Re: Holds on Deposits for NEW Business Accounts Anonymous
RockChucker, CAMS Offline
Diamond Poster
Joined: Jul 2013
Posts: 1,526
The Country
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.
_________________________
A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
-David Brinkley

Return to Top Reply Quote Quick Reply Quick Quote
#2247076 - 12/31/20 05:50 PM Re: Holds on Deposits for NEW Business Accounts Anonymous
Anonymous
Unregistered

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.

Return to Top Reply Quote Quick Reply Quick Quote
#2247082 - 12/31/20 08:26 PM Re: Holds on Deposits for NEW Business Accounts Anonymous
BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 5,806
Illinois
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.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top Reply Quote Quick Reply Quick Quote
#2247083 - 12/31/20 08:39 PM Re: Holds on Deposits for NEW Business Accounts Anonymous
RockChucker, CAMS Offline
Diamond Poster
Joined: Jul 2013
Posts: 1,526
The Country
Good catch Brian! Is 2020 over yet?! 😂
_________________________
A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
-David Brinkley

Return to Top Reply Quote Quick Reply Quick Quote
#2247267 - 01/06/21 05:13 PM Re: Holds on Deposits for NEW Business Accounts Anonymous
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 38,945
Cape Cod
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.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top Reply Quote Quick Reply Quick Quote
Quick Reply:
HTML is disabled
UBBCode is enabled




Moderator:  MagicCity, P*Q, Truffle Royale