Deposits & Withdrawals
Yes. The federal consumer protection laws do not prevent banks from recovering funds related to checks or electronic deposits that are returned unpaid, even when the bank has already given the consumer use of the deposited funds. This includes situations where the deposit was a fraudulent check and the consumer was unaware of the fraud when depositing the check. However, state laws may contain other bank responsibilities and liabilities related to checks and electronic deposits. Contact your state banking department for more information on state laws related to checks and electronic deposits.
Banks can place "holds" on checks for a variety of reasons. Most commonly, banks hold a check because the collection of the money may be in doubt or the check looks suspicious for some reason. Holds may also be placed when a large dollar amount ($5,525 or more in checks) is deposited in one day or when funds are deposited into a new account (opened 30 or fewer days ago).
A federal law, the Expedited Funds Availability Act (EFA), or Regulation CC, provides exceptions that allow banks to delay or "hold" funds deposited by check for an extended period of time. When this happens, you must be given a notice stating the reason for the hold and when your funds are available for withdrawal. You may also want to review the account agreement you received when you opened your account for details about your bank's funds availability policies and procedures. A bank must give you a copy of its deposit availability disclosure upon request.
Federal law does not regulate the order that banks post checks to your account, but some state laws might. Bank computer systems may be designed to process checks randomly, from the largest to the smallest check amount, or based on some other method.
Some banks post the largest checks before the smallest checks assuming that larger checks are the most important payments being made by the customer, for items such as mortgage or rent payments, or auto loans. You may want to ask your bank which method it uses to post checks.
Yes. The bank may be asking for additional information because federal law requires banks to complete forms for large and/or suspicious transactions as a way to flag possible money laundering. These forms go to the Internal Revenue Service and the Department of Treasury's Financial Crimes Enforcement Network ("FinCEN"). Federal law defines a "large" transaction as a transaction or series of transactions totaling more than $10,000. A suspicious transaction is one where the institution has reason to believe that, or is unsure whether, there is suspicious or illegal activity going on. A bank faces large money penalties and its employees may be imprisoned for not complying with the federal law.
Learn more about the Bank Secrecy Act and Anti-Money Laundering law at the Federal Financial Institution Council's (FFIEC) Customer Identification Program Overview.
Yes.
A bank is required by law to verify and form a "reasonable belief" that it knows your true identity. At a minimum, the bank must collect and verify
1) your name;
2) your date of birth;
3) your address;
4) your taxpayer identification number or social security number.
To verify the information you provide, a bank may request a valid government issued identification, such as an unexpired driver's license or passport. It may also use other methods of verification, such as comparing the information you provide against your credit report, verifying your place of employment or checking references with other financial institutions.
Learn more about customer identification regulations by reading FINCEN's Interagency Interpretive Guidance on Customer Identification Program Requirements under the USA PATRIOT Act.
Federal Reserve Banks do not provide grants or banking services, such as offering deposit accounts or lending money, to consumers. The Federal Reserve provides certain financial services to the U.S. Government, depository institutions, and other financial entities. Learn more about the Federal Reserve and Federal Reserve Banks on the Federal Reserve Education website. Also be aware and learn more about scams related to loans, deposit accounts or grants by visiting the FTC's Consumer Advice page.