Best Answer

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.

User Avatar

Wiki User

โˆ™ 2005-09-17 04:38:00
This answer is:
User Avatar
Study guides
See all Study Guides
Create a Study Guide

Add your answer:

Earn +20 pts
Q: Is it legal for a bank to hold every deposit made into a business account for seven days?
Write your answer...
Related questions

Is it legal to cash a check made payable to a business?

Yes, as long as you are cashing the check on behalf of the business (as a legal representative of the business) or if you are depositing the check into the account held by the business you can legally cash the check. No - of you are not a representative of the business or if you are trying to deposit it into an account that doesn't belong to the business.

Is it legal to transfer funds from business to personal account?

It is legal as long as both accounts belong to the same person/company. If the owner of a company transfers cash from his business account to his business account it is legal. But, if his Personal Assistant does it from her boss's business account to her personal account, it is illegal.

What are the legal bits that the business have to take into account?

Copyright. (Name of the business)

Is it legal for a temp agency to direct deposit into a bank account from a previous assignment a long time before without your recent permission?

You can make a deposit into anyones account whether you are on it or not, but you have to be on the account to make withdrawls and to switch funds around. It is not legal for anyone to take funds from your account unless authorized in writing or in person

What are thebasic requirements for a fixed deposit account?

The basic requirements for opening a fixed deposit account are: a. Amount to deposit b. Existing relation with bank (You need to hold some sort of account with the bank. Else, you will be asked to open one) c. Source/Proof of legal income If you have these, any bank will be willing to open an fixed deposit account for you.

Should prepaid rent be deposited in security deposit account?

Some states have statutes which state that a security deposit cannot be comingled with the landlord's funds. Some legal scholars have concluded that, since the last-month-rent deposit is the landlord's funds, these cannot be in the same account.

What is call deposit receipt?

A Call Deposit Receipt is a certificate issued to government institutions and corporations as a type of security deposit. The institution or corporations it is issued to can redeem it at any time for legal tender from the issuers account.

What role in business does the political and legal environment have?

Every business is affected. The bigger the business, the greater the influence. For any business of significant size, regulatory and legal issues are the most important factor in determining survival and profitability.

Is it legal to check your credit to open an account with a bank?

Yes, it is perfectly legal to check your credit score before opening an account with a bank. The bank themselves would run a credit check on you before finalizing the account opening procedure. However a good credit score is not mandatory to open a deposit account.

What do you need in order to make an account with rainier pacific bank?

"Starting a Rainier Pacific bank account is simple. All you need is to be at legal age, have an id, and a deposit to start your account. It is very simple and easy to do and I highly recommend it."

Can you legally withdraw money from a joint bank account that you did not deposit?

If the bank account is in your name (ie it is a joint account with your name on it) then you have the right to withdraw funds from it or to deposit funds into it. However if you feel that you should not be withdrawing money because it will upset the other person who jointly owns the account then perhaps you should discuss this with them before you make the withdrawal - there is more to life than the simple legal niceties.

How do you write a resolution letter to open a business account?

because the account is owned by a separate legal entity. A resolution is required to indicate who can sign on its behalf

Is a non refundable deposit legal?

by law do i have to give back a non refundable deposit

What is the minimum dollar amount to open an Emigrant Direct Account?

There is no minimum deposit required to open an Emigrant Direct Account. Fees will be charged for services such as letters of verification and legal fees should any occur.

Do you need a license for start a business?

Every business registered license, is a document of a company name, you registred your business in your state and pay taxes in a legal fashion.

Is it illegal for your business partner to remove your name from the business license and bank account?

It depends on the legal organization of the business. There are so many factors involved that you should consult an attorney if this is a concern for you.

What legal formalities are required to start a sole proprietorship?

Other than the various local and state business licenses that every business must purchase regardless of type of ownership, no legal formalities are required to start or operate the business.

What are the legal basis of business?

Legal bases of business

What is the minimum legal age to open a corporation?

There is no minimum or legal age for a person to be able to open a corporation. Minors must visit their local branch to discuss the nature of the business of interest before opening a business account.

Can credit card debt be garnished from unemployment?

Technically no. However, if you deposit your checks into a bank account, the money in the account can be seized and you'll have to file legal papers proving the source of the money was in fact unemployment in order to get it back.

Can a bank stop you from having a checking account?

Banks are businesses and have every legal right to refuse to open a checking account for someone if they feel it is not in their best interests.

What is legal responsibility in business?

Legal responsibility is business ethics. You can research the topic or check with the Small Business Administration.

What is legal environment of a business?

The legal environment of a business refers to the relelvant laws and regulations under which the business operates.

Importance of legal environment of business?

The legal environment is important to business so that a business runs smoothly. If a business, especially a large one, has no legal department, they are much more open to problems.

Can a landlord use your security deposit for their own bills and ask you to pay the security deposit again I live in Oregon?

I don't think so, I don't believe any Landlord has the legal right to demand a Security Deposit be payed twice. I suggest you seek legal counsel.