Reg 9 Day Hold on ALL New Account Deposits?

Answered by:

Question:

We don't place the regulatory 9 day hold on new account deposits. However, we do place exception holds once in awhile (7 day). A Compliance Trainer told us that if you do the regulatory 9 day hold on new account deposits, you have to do it for all of them - you can't pick and choose. Is that true?

Answer:

The nine-day rule only applies to items that are subject to next-day availability, and only to the excess of such checks over $5,000. Other checks, you can hold for as long as you want (although you should disclose how long in your new account disclosures). Your disclosures should reflect what you do most of the time.

First published on BankersOnline.com 11/05/12