Banking
Commercial Bank and Checking Accounts

Is it legal for a bank to hold every deposit made into a business account for seven days?

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2005-09-17 04:38:00
2005-09-17 04:38:00

This would depend on the state banking regulations. If every other bank of this type, is holding the deposits seven days, then it is probably legal. If not, then switch banks. I'm assuming you are in the US. If not, ignore this answer. If the bank is doing this, it's legal, but unusual unless all the deposits are checks from banks in other Federal Reserve Districts. Otherwise the FDIC and state banking inspectors would be on the owners like stink on a skunk! With all the recent electronic advances in check processing, the bank has their credit with the Federal Reserve that night for any check drawn on any US bank and SHOULD know if it was returned within 48 hours at the most. Check with another bank and see if they have the same policy. If not, move your account.

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