Choice Checks Blog Why does a bank put a check on hold for a few days?

Have you ever wondered why a bank/credit union will put a hold on a check that you deposited. There are several reasons probably. Its a out of state check from a different bank. The dollar amount is high, new checking account, and or the frequent of overdrafts or returned checks on your account. Keep a higher balance in your business checking account or personal account, and it will help. It may be hard to keep a higher balance when not enough funds are coming in vs bills being paid. Another idea you could is get a line of credit for true emergency's. During the time a hold is in effect, you should not write checks against or attempt to withdraw the held funds. If a hold has been placed, the bank may return checks that you have written because the balance wasn't available. Your bank will tell you if a hold will be in place when the deposit is made. Since its the end of the month. Check to see if you need to order tax forms, or printed business checks for your business.