Funds availability and holds on deposits
Imagine that someone paid you with a bad check. You didn't know it was bad and deposited or cashed it at a financial institution in good faith. When the financial institution attempted to present the check for payment to the issuing bank, it bounced. By law, you would be liable to return the funds you received to the financial institution that paid you. Deposit holds and funds availability policies are designed to protect you and the financial institution in those instances.
DCU's policies give you immediate credit for deposited funds so you can start earning on the money if in a dividend-bearing account. However, depending on a number of factors, all or a portion of that deposit may not be available for you to spend for a period.
Below is a summary of DCU's Funds Availability Policy.
Funds available on the business day of deposit
- Checks drawn on DCU
- Electronic Funds Transfers (Direct Deposit, ACH Deposit)
- Wire Transfers
- First endorsed items:
- Cashier's, Certified, and Treasurer's Checks
- Items directly affiliated with sponsoring companies (i.e. payroll, investor services, insurance, relocation)
- Federal, State, and Local Government Checks
- Insurance Checks payable to DCU and member (with paid work order)
- Money Orders, and Traveler's Cheques
- No less than $200 from any DCU Branch or proprietary ATM deposit. Longer delays of up to five business days may apply on deposits made at non-proprietary ATMs. ATMs that we own or operate (proprietary) will be identified as DCU machines.
When other funds become available
For checks deposited on a Monday, for example:
- No less than $200 will be available by the first business day after the deposit (or Tuesday).
- Up to an additional $4,800 on the second business day after the day of deposit (or Wednesday) for up to $5,000 available.
- All funds remaining on the fourth business day after the deposit (or Friday).
Other potential delays in availability of deposited funds
Funds I deposit by check may be delayed for a longer period of time under the following circumstances:
- The item is deposited within 30 calendar days of the opening of the account.
- The item is an insurance draft that is payable through another institution.
- You received notice that the item(s) has been or will be dishonored
- The item is being deposited into an account with a history of collection problems
- The item is drawn on an office located outside of the United States
- The item is subject to a processing delay; that is presentment delay, a mutilated item, or an improperly coded item
I will be notified if a longer delay was applied.
Any delay beyond the time limits prescribed above shall be excused if caused by interruption of communication facilities, suspension of payment by a bank or savings institution, emergency conditions, or other circumstances beyond our control.
In no event does the above policy affect our right to accept or reject an item for deposit or to require written notice of an intended withdrawal.
Other information on our policies
Note that local and non-local refer to the location of a check's paying institution relative to the location where you deposit the check. Local means both are within the same Federal Reserve district.
The expiration of the hold period, and subsequent availability of the deposited funds in your DCU account does not necessarily mean the deposited item has in fact cleared the account against which it was drawn. To confirm this you must contact the paying bank. If any item you cash or deposit with us is returned unpaid by the paying bank, we may debit from your account both the amount of the item and the applicable fee as listed in your Schedule of Fees and Service Charges.
For DCU's complete Funds Availability Policy, see Part IV of the Truth In Savings Disclosure and Account Agreements.
Check cashing by non-DCU members at DCU branches
If cashing a DCU check, there will be a $5 check cashing fee subtracted from the amount disbursed.