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#423211 - 09/15/05 06:26 PM Holds on Savings Account
Anonymous
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If someone deposits a treasury check (social security) into a new savings account, how long can the funds be held? The particular check I refer to was over $25,000 the savings account was new.

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#423212 - 09/15/05 07:42 PM Re: Holds on Savings Account
JohnDoe Offline
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check with your state laws. Regulation CC does not apply to savings accounts, unless your state law says it does.

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#423213 - 09/16/05 01:42 PM Re: Holds on Savings Account
LoisLane Offline
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How does someone get a social security check for over $25,000?
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#423214 - 09/16/05 02:13 PM Re: Holds on Savings Account
Anonymous
Unregistered

Apparently is disable. The check had Soc. Sec. for Insurance on it. We recently had one of the counterfeit treasury checks brought in at one of our other locations, which fortuneately one of our tellers caught, so we're kind of leary about large checks of this nature.

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#423215 - 09/16/05 02:41 PM Re: Holds on Savings Account
BrendaC Offline
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Sweet Home AL
Lois--If you apply for disability benefits and are denied, you go into a hearing and adjudication process that can take quite a while in some cases. If you ultimately approved, your disability benefits are backdated to the date of your application so the first check can be for a significant amount.
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#423216 - 09/16/05 09:43 PM Re: Holds on Savings Account
Andy_Z Offline
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While CC doesn't apply to savings deposits, which is correct, you may have contracted in your disclosure to include them in your availability procedures. Be careful you don't violate this, though that wouldn't invoke regulatory criticism in most cases you could still have a complaint and an issue.
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#423217 - 11/10/05 08:30 PM Re: Holds on Savings Account
Key Lime Pie Offline
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Louisville, KY
I have 2 questions please

(1) If we don't include savings or MMDA's in our disclosure, is it still permissible to place a hold? If yes, must we follow our availability schedule as defined in the disclosure?

(2) Does providing the funds availabilty disclosure prior to account opening of a savings or MMDA account constitute including these accounts in our availability procedures? If not, do we have to specify in the disclosure that savings and MMDA's will follow the availability schedule?

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#423218 - 11/11/05 11:43 PM Re: Holds on Savings Account
rlcarey Offline
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Galveston, TX
1) Yes you can place a hold and no you don't have to follow your policy for transaction accounts as long as you excluded savings and MMDA accounts from coverage under your policy.

2) See answer to #1 (but why would you be providing the disclosure?)

Check your State law also, some States bring savings and MMDA account in under the Reg CC umbrella.
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#423219 - 12/27/05 05:23 PM Re: Holds on Savings Account
JeffB Offline
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Posts: 106
NC - On the Coast
Can anyone see if my logic is correct? Reg CC does not apply to Savings Accounts. Our availability disclosure says it only applies to "transaction" accounts. I can find no other indication in any of our disclosures that savings accounts are covered by our transaction account availability schedule. I cannot find anything in NC law that brings savings accounts under Reg CC umbrella.

Assuming I am correct in the above statements, we could theoretically place a hold on a savings account for as long as we wanted. Obviously we could get into a customer service problem for extensive holds, but I would like to have some policy as to placing holds on savings accounts. Is there a standard most banks adopt for this?

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#423220 - 12/27/05 05:29 PM Re: Holds on Savings Account
RBanker Offline
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Austin Texas
Don't hold your breath - I asked the same question and only got one response, though it was a good one. We still haven't made a determination, though it's likely we'll go with an 11 or 15 day hold for non-transaction accounts - and it will be in our procedure manual.

I too had asked what other's were doing and to that question receive no response - hopefully you'll have better luck -

PS - I think everyone's in the Cooler probably.
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#423221 - 12/27/05 05:29 PM Re: Holds on Savings Account
#12 Offline
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We do a 7 day hold per our account disclosures.
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#423222 - 12/27/05 05:44 PM Re: Holds on Savings Account
Elwood P. Dowd Offline
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There isn't any standard; banks that use this technique usually just set the time frame based on the circumstances. However, 11 - 15 days is as good a standard as any. My suggestion is that a written policy on savings account holds simply say "up to XX days, unless a longer hold is approved by a supervisor."

My prejudice is that if I'm only willing to accept it for deposit into a savings account, I probably don't want to accept it at all. My desire to impose firm limitations on myself in that circumstance is weak.

My self-imposed burden would be that the customer would have to receive a written notice of the hold just as if the regulation applied.
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#423223 - 12/27/05 05:49 PM Re: Holds on Savings Account
RBanker Offline
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Austin Texas
Quote:

written policy on savings account holds simply say "up to XX days, unless a longer hold is approved by a supervisor."


That is a great idea - I'll likely work that into my procedures - thanks Ken!
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