How to Remove a Hold on a Bank Account

A few years ago, I deposited a fairly large check using my bank’s mobile deposit service. I didn’t think much about it until my automatic credit card payment went through, and I received multiple overdraft notifications. After panicking and logging into my account to see how I could be hundreds of dollars overdrawn, I called my bank. My deposit was on hold because the picture of the check was blurry.

I didn’t know that when you deposit a check, your bank generally makes some or all of the deposit available to you before they actually receive the funds. If there’s a problem (like a blurry image), the bank needs time to investigate, so they place the deposit on hold, and you can’t touch it until it's released.

Learning how to remove a hold from a bank account can be pretty straightforward, but you need to know why the bank placed the hold in the first place and be familiar with their specific deposit policies.

Key takeaways

• Banks place holds on accounts and deposits to ensure the payer has the funds available and to help prevent fraud.
• Most non-cash deposits clear within two business days, but some take longer.
• Using direct deposit or depositing checks in person can help avoid bank account holds.

What is a bank account hold?

A bank hold, sometimes called a check or deposit hold, temporarily prevents you from accessing or using recently deposited non-cash funds. Banks place holds for various reasons, and how long they last depends on your bank and the reason for the hold.

Holds help banks protect themselves so they don’t lose money from bad checks or fraudulent deposits. While this can be frustrating for us as customers, it helps protect us too.

If a bank made deposited funds available right away, you would probably spend them immediately, right? However, if the check later bounced because the issuer didn’t have the funds available, your bank would remove the deposit from your account or make you pay it back.

Depending on how much of the deposit you spent and how much money you already had in your bank account, you might accidentally overdraft your account (like I did), leading to fees, declined transactions, and returned checks.

Common reasons for holds

A bank may place a hold on your bank account for multiple reasons. Sometimes, it's for something simple, and the hold disappears in a day or two. Other times, the hold may take longer to clear.

A hold is more likely to happen to you in these situations.

• Large check deposits: Deposits over $5,525 will likely trigger a bank hold. If you’ve recently deposited a large check, there may be a hold while the bank verifies that the funds will clear with the issuing bank. This can also apply to multiple large deposits over a short time frame.
• New customer deposits: Banks may hold new customer deposits while verifying your information. If you’re a long-standing customer, your deposit may be available sooner.
• Frequent overdrafts: If you have a history of overdrawing your account, your bank may place a hold until the funds clear. This helps them prevent returned checks and helps you avoid insufficient funds fees.
• Returned check redeposits: If you’re trying to redeposit a previously returned unpaid check (meaning the funds weren’t available in the issuing account), your bank may place a hold to ensure the funds are available now.
• Check discrepancies: Checks older than six months, postdated to a future date, or with other discrepancies might trigger a hold or outright rejection.
• Suspected fraud: If a bank or credit union reasonably suspects the deposit is fraudulent or there isn’t enough money in the check writer’s account to cover it, the bank may hold the deposit until they physically receive the funds.
• Bank emergencies: If a natural disaster, computer failure, or other communications interruption impacts your bank, your deposits may stay on hold until the bank can resume normal operations.

Bank account holds vs. frozen accounts

It’s important to note that a bank hold differs from a frozen account. Bank holds temporarily restrict access to some or all of a new deposit, not your entire balance. Holds generally resolve within a few days, and you can access other funds that you’ve already successfully deposited into your account.

On the other hand, a frozen or locked bank account prevents you from accessing any money in the account except under specific circumstances. Bank accounts are often frozen because the bank has evidence of fraudulent activity. Banks can also freeze your account due to an IRS levy for unpaid taxes, a court order, or other unpaid debt.

Depending on the issue, a freeze may take just a few days to resolve. However, if a creditor freezes your account for unpaid debt, it could stay frozen for up to 30 days, and the bank may turn over the money in the account to the creditor based on a court order.

Typical timelines for bank account holds

Although deposit timelines might seem arbitrary, banks and credit unions must follow Federal Regulation CC regarding deposits. The regulation requires banks to disclose when deposited funds will be available for withdrawal and post a notice of the policy where depositors can see it, including on deposit slips.

In addition, Regulation CC requires banks to release deposits of $225 or less by the next business day after the deposit date. If you deposit more than that, $225 must be available by the next business day while the remaining amount is generally available on the second business day.

However, if you deposit a check on a weekend, over a federal holiday, or after the bank’s posted deposit time, your bank generally treats your deposit as though you made it on their next business day.

For example, if you deposit a check for $1,000 on a Saturday, the bank considers the deposit date to be Monday (even if the bank is open on Saturdays). The bank will likely make $225 of the deposit available on Tuesday (the next business day from the recorded deposit date), with the remaining $775 available on Wednesday (the second business day from the deposit date).

A bank can place a longer hold on a check in several circumstances, including:

Large deposits

If you deposit more than $5,525, the bank generally has to make the first $5,525 available according to their availability policy. Amounts over $5,525 are usually available within five additional business days (seven business days total).

Government checks

Generally, a bank must release government checks, like Social Security or Supplement Security Insurance (SSI) payments, deposited in person by the first business day after the official deposit date. If the official deposit date is Monday, your funds should be available by Tuesday, assuming it's not a federal holiday.

The same timeline usually applies if you use one of your bank’s ATMs to deposit a U.S. Treasury check into an account you own. However, you might have to use a special deposit slip to qualify for next-day availability, so ask your bank about specific deposit details.

Certified checks

Banks generally process certified and cashier’s checks according to rules similar to regular, in-person deposits. The bank typically makes funds available by the next business day after depositing the check.

However, some of the same conditions that delay a regular check can also affect a cashier’s check, such as if the account has been open for less than 30 days, the check amount exceeds $5,525, or the bank reasonably believes they won't collect the funds from the paying bank.

Additionally, if you repeatedly overdraw your account or have multiple returned checks in a short time, you might see a delay.

In-person deposits

A check deposited in person with a teller typically clears faster than one deposited via an ATM or mobile banking. Since the bank physically has the check and can process it directly, you usually receive the funds sooner.

Unlike when using mobile banking, you’re not subject to image verification because the bank has a physical copy of the check. However, your bank’s policies about deposit availability still apply. Before you start spending, confirm that the deposit appears in both your current balance and available balance.

Be aware that most credit unions and banks have a deposit cutoff time. This must be no earlier than 2:00 p.m. for physical branches and noon for ATMs and other deposit methods. If you deposit after the cutoff time, the official deposit day will be the next business day.

ATM and mobile transactions

Using ATMs and mobile banking can be convenient, but the deposit may take longer to clear.

If your bank owns the ATM, you can generally withdraw or use the total amount on the second business day after the official deposit date.

When you deposit at an ATM your bank doesn’t own, those funds must generally become available after the official deposit date on the fifth banking day. However, depending on your financial institution and their availability policy, you might get earlier access to your funds.

If you use mobile banking, your electronic deposit may take longer since the bank has to complete the review and verification processes. At least $225 is generally available within a day of the deposit, though the rest may take several business days to clear.

New account holders

The time it takes for a deposit to clear can also depend on how long you’ve had the account. An account less than 30 days old with frequent or large deposits can make a bank suspicious, so they may hold deposits to verify that the funds are available and legitimate.

How to remove a hold on a bank account

Removing a hold from your bank account could be straightforward, but it depends on why the bank placed the hold. If you suspect a deposit is on hold, there are a few things you can do.

Call your bank

If your deposit is on hold, the bank will generally provide you with written notice, although you may discover the hold before the notice reaches you.

If you receive a notification about a hold on your account or suspect a problem, contact your bank for more information. They’ll likely follow their availability policy's standard procedures, so check your account documentation if you can’t reach someone in customer service.

Provide additional information

Once you know why the bank is holding your deposit, you might be able to speed up the process.

If the bank needs more information, providing copies of receipts or other documents might help release the hold. In my case, I provided a new photo of the check, and the bank was satisfied. They released the hold a day later, and the funds were available a day after that.

If a merchant, like a gas station or restaurant, placed a pre-authorization hold on your debit card, you may be able to resolve the hold by contacting them and requesting removal.

Sometimes, the bank may have made a mistake. If you think that happened, contact them, explain the situation, and ask them to remove some or all of the hold. Calling or visiting a branch, rather than contacting corporate customer service, might help you get faster results.

Wait it out

Waiting for your funds to become available can be frustrating, especially if you have bills to pay and groceries to buy. However, don’t try to spend the deposit before the bank clears it. Also, ensure you’ve stopped automatic payments if they could overdraft your account.

If the bank decides that a check is fraudulent or the issuing account doesn’t have funds available, they may remove all funds related to that deposit from your account, including the initial $225 released immediately. If you’ve already spent that money, the bank may apply overdraft fees if you overdraw your account.

Here are two things you can do to minimize problems while waiting out holds.

• Enable overdraft protection: If you’re worried about overdrafting your account from a deposit hold, consider adding overdraft protection to avoid potential extra fees. While it won't prevent a hold, it could help prevent bounced checks and declined purchases if your bank ultimately rejects your deposit.
• Keep an emergency fund: Even if a deposit is on hold, you still need to pay your bills. Since the hold only applies to that deposit, keep extra funds in your account to cover upcoming bills and automatic payments. I learned my lesson, and now I keep a cushion amount in my checking account. Building up the extra funds took time, and I have to remind myself that they're not available to spend, but they provide peace of mind in case something goes wrong.

Preventing future bank account holds

Many bank account holds occur automatically if your deposit meets specific criteria. To minimize the chance of future bank holds, consider taking the steps below.

Read your bank’s terms

Since deposit hold policies can differ by bank or credit union, it’s essential to read and understand your bank account’s terms and disclosures. Regulation CC requires banks and credit unions to post their deposit availability policy prominently, like at the start of the bank teller line. Many of the best banks will also post it near their ATMs and on their websites.

Use direct deposit

Using direct deposit can help you avoid some common causes of bank holds and save you the time and hassle of going to the bank or dealing with mobile deposits. By law, banks must make direct deposit funds available by the business day after the official deposit date. In some cases, funds may be available on the same day.

Plan for large deposits

If you know you’ll have a large check to deposit, ask for a certified or cashier’s check. While the check will still be subject to your bank’s deposit schedule and verification process, it will likely clear faster than a check from an individual’s account.

Make in-person deposits

If you have a paper check, deposit it with a teller. This is typically the fastest way to get a check to clear, especially compared to ATM or mobile deposits that require image verification.

Switch banks

If you experience multiple deposits on hold with your bank and you’ve had the account for at least a few months, consider looking for a new bank.

As part of your research, review the deposit schedule and other documents to help ensure you receive your money as quickly as possible. Some of the best checking accounts even offer early direct deposit of your paycheck in certain cases.

Remember, however, that deposits you make during the first 30 days your account is open are subject to extra scrutiny by the bank. Therefore, you may inadvertently trigger a bank hold by opening a new account.

Finding out about merchant holds beforehand

If you plan to make a big purchase using your debit card, ask the merchant about their debit card pre-authorization policy. Use your PIN instead of just signing your name to have the funds withdrawn from your account immediately and bypass any pre-authorization holds.

If your debit card transaction is on hold, you can contact the merchant and ask them to remove it. You can also try contacting your bank about removing the hold, but you’ll need to justify why and provide backup documentation.

FAQs

Bottom line

A bank account hold is inconvenient, but planning ahead before you make a deposit and communicating with your bank if there’s a hold can lessen the impact. Read your bank or credit union’s deposit availability schedule and pay attention to your current balance to know how much money you can spend in your account. By staying in contact with your bank, you can better navigate these challenges and minimize the potential harm of a bank hold.