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Rule for Funds Availability

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Question: 
What is the $5K next day rule for funds availablity?
Answer: 

There are two places that dollar amount comes into play. First, for a new account, the first $5,000 of any qualified "next-day-availability" items (Treasury check, postal money order, traveler's checks, cashier's checks, etc.) has to be made available on the first business day after the banking day of deposit, and the remainder of those checks must be available by the 9th business day after the banking day of deposit.

Second, if a bank invokes the "large deposit items" exception hold, the first $5,000 of qualified "next-day-availability" checks (same group as above, except for traveler's checks) has to be available on the first business day following the banking day of deposit, and the balance of those next-day checks must be made available on or before the 7th business day following the banking day of deposit.

First published on BankersOnline.com 1/17/11

First published on 01/17/2011

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