Workaround for Holds placed by BOA on large checks (BT AOR people)

In my current AOR, I came across a strange practice at BOA.

BOA always credits my account promptly but this time when I deposited a chase BT check (25K) they put a hold on it for 15 business days. When I asked, they said the deposit was larger then my average deposit and that's why the system put a hold on it. They also said that since I put it in the ATM, the manager could not override it. There was no way they would take the hold off so I had to back off.

Next time I deposited another large BT check (50K) but this time I went into the bank to deposit it. The system put a hold on it but when I cried, the manager made efforts to validate the checks and cleared it within 5 days. Better but I still lost the interest...

So when I went to deposit the next check, I talked to the manager straightaway and he said that I should put it in a 7month CD. If I hold it there for 7 days, I can close the CD and still get the accrued interest. The CD rate is 4.4%.

Funny thing is they will accept the BT check to open the CD and pay interest on it but they would not transfer it to checking while paying no interest.

So if you deposit a large check do it with the teller. If the deposit is going to be held, ask about CD options. BOA 7mth CD is perfect for this because you can close it (and get interest) after 7 days.

N

needdealsnow said:

Funny thing is they will accept the BT check to open the CD and pay interest on it but they would not transfer it to checking while paying no interest.

N

It isn't that funny. They can forbid you from pulling out of that CD just like they can freeze your checking. However, you were asking for an "unfrozen" checking which means you could (and would have) pulled the money before the validation period was over. That defeats the whole purpose of the validation period.

Good find though, if it has to be frozen at least it is getting a decent rate.

Is not paying interest on amounts put on hold standard practice across all BOAs? I deposited a 25K check too and was told it would continue to earn interest during the hold period. Have to wait until the next stmt to see if there is any truth to it.

i just talked to a csr who thought AND SO DID HER MANAGERS, that interest accrued the next day after deposit. when i told her to read the disclosure literature, she changed her mind.

then she read the disclosure literature about cds and said that you can't open one with a check until they know that the funds are there to be collected unless you already have money to cover it in another account. this is certainly not what i was told at the branch!

i think they are trying to be purposely deceptive because every manager i talked to first said their accounts earn interest from day of deposit (like most other banks do).

cclyde said: Is there no penalty for yanking the money out of a 7mo CD in 7 days? Is this using a "right to back out" law or something?

No it's not using law or something. These CDs are called risk-free CDs in BoA. You can withdraw after 7 days without penalty.

I have deposited some pretty heavy checks and have always had them take FOREVER to clear... although I never really needed the money that badly so I dealt with it.

However, on a prior thread on this issue... some knowledgeable person stated that there are regulations that limit the bank's ability to put epic holds on your funds.

Interesting tactic... My solution to BOA's deposit hold policy is that I now deposit all of my large checks in my Wachovia account...

Heck, you guys are lucky the teller didn't put a shotgun to your head over such a questionable amount or have you arrested. Me personally, I'd just find another bank that doesn't mind me depositing large amounts...

scott1961 said: happybenjamin said: Yeah, me too. I just mail it to Presidential.
what's the big deal of a hold? You do get interest while the hold is on. I deposit large checks frequently and have never lost a day of interest. Mailing is how you lose interest, Could take a few days to get there and then another day or so for them to post it.

Well, I'm in MD and it's usually deposited in my presidential account the next day.

Ran into the same hold BS a few months back. They took a $50K
"bank check" without hold. A month later I did the same thing
with $20K and they demanded to put a 15 day hold on it and yes
they do NOT pay interest during the 15 day period!!. Even if it's
a local "bank check" they told me I would NOT get interest for 15
days!. I only do "online" transfers now, better for my blood
pressure.

what's the big deal of a hold?
How about: It is my money?

If you are a "Premier" customer (or whatever they call it in your state), there is a person assigned to help you. The name and phone # of the person is usually printed on your statement. You can either have the teller call this person or you can call after you made the deposit and have them release the hold.

I have no idea why I'm a "Premier Banking" clients since I don't keep more than a few dollar in the account...

anakinskywalker said: nice idea.

i've always deposited BT checks in WaMu. They used to put 5 days holds initially, but after a while they stopped placing holds. I deposit with teller in person.

For extremely large checks I deposit in HSBC OnlineSavings at a HSBC ATM. It is a bit risky (the check can get lost in the ATM); but since I can write another BT check if one gets lost, I take the risk.

If it was an extremely large cashier's check (that I cannot replace immeidately like I can a BT check I wrote myself) then I do not deposit in ATM. I deposit with HSBC teller in checking account. It is available immediately (cashier's check). Then I move it into OnlineSavings right away.

Anakin

wamu used to put holds on my checks also but now that i have funds in their savings, theyve stopped holding my checks.

Citi bank doesn't put any hold to my check deposits under $5000, if I deposit to checking account.

However, they DO put holds if I deposit checks to my e-saving account. I don't know why.