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Ever wonder why

Discussion in 'Off Topic Threads' started by reddbudd, Sep 5, 2013.

  1. reddbudd

    reddbudd Well-Known Member

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    Why is it that when you send a check to another state they check it electronicially and if the money isn't in your account the check would bounce. But when you deposit an out of state check they put a seven to ten day hold on the funds. Why can't they check out your deposited check electronicially? Bud
     
  2. Beretta687EELL

    Beretta687EELL Well-Known Member

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    Banks make a big profit doing that. Add up how many checks are deposited on a daily basis and how much income they can earn during those days you don't have use of your money. Bill Malcolm
     
  3. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Because that money represents capita. If a bank has millions in check transfers from out of state, sitting on the checks can gain them big bucks in interest.

    And it's not just banks. Many large chain stores figured out that on a national basis they may have millions of dollars in sales in one day. So they loan the money out for the time period they are closed. Perhaps from 9PM to 9AM. That's half a day's interest on all that money.

    When dealing with large sums of money, what would be piddling amounts to us for one delayed check really add up for them.

    I've had bank checks come in from other financial institutions and have been told there would be a 7 to 10 day hold on them. I asked for a supervisor to clear the check. I have never been turned down by my bank, and ALL of the funds were instantly cleared. Don't accept what the teller tells you. Ask for a supervisor and tell them you want the check cleared.
     
  4. shooterIII

    shooterIII Member

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    That is why I use my local Credit Union.
     
  5. burtona

    burtona Member

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    Sorry, but Credit unions play the float game too!
    When interest rates were higher, banks (and Credit Unions) made a lot more money on float that in today's interest rate environment.
    They are just doing what the state UCC laws and federal regulations allow. (and in some cases require)
    Dave
     
  6. EuroJoe

    EuroJoe TS Supporters TS Supporters

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    Time is money! Remember when the Alaska oil deal was signed? Billions were involved, a chartered jet was standing by to fly the check to New York.
     
  7. dirt stirrer

    dirt stirrer Well-Known Member

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    If you have enough funds in your account to cover the check in case it does bounce, I have no problem in cashing any check. Now, do they remove a similar amount of funds out of my account for the next few days to play the float game, I've never seen that thy do. Now, should the check really bounce, they woud jerk the same amount right back out of my account, but I have never had that happen yet. You just need to find a better bank. I know thy all do it, but of the many folks who keep small account balances, under the amount of the check, it allows them to play this game.
     
  8. waverider

    waverider Well-Known Member

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    Check out the website above.

    Note that there is no mention of out of state checks. I think that now all checks are cleared electronically through the FRB Cleveland and all checks are considered local.

    Jason
     
  9. reddbudd

    reddbudd Well-Known Member

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    I was justcalling attention to the basic unfairness of the system. If a check I send cross country is cash and the funds are withdrawn from my account the same day, a check I deposit from cross country should be available the same day. The person who sent the check most likely had the funds withdrawn the same day. So the bank knows the same day if the check clears or not.
    Bud