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.
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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.
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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.
great idea. i have an nea acct that is now through boa so while i'd lose some percentage points with that cd, it might be worth it in the long run not to lose days of interest on a large deposit.
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.
fwratz1 said: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. ===================== look under "interest" in the disclosure brochure for savings and checking accounts. it states (i forget the exact wording) that they need not pay interest until the funds are collected for non cash items such as checks.
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).
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.
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?
Interesting. I always thought there was a penalty as well. That's why when I have large non local checks to deposit, 100K+, HSBC always offer to open a 'bridge' CD for me for 7 days. The rate is still low though, no where near the 7 mo CD rate. Nowadays I just deposit directly into my Citi e-savings 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...
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.
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.
remmymom said:look under "interest" in the disclosure brochure for savings and checking accounts. it states (i forget the exact wording) that they need not pay interest until the funds are collected for non cash items such as checks.
Until the funds are collected, which is usually 1-2 days. So you do get interest during the hold period. I used to think there is a 10-business day hold for $5K or above. They can hold 15 business days now?
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.
radiator said:Interesting tactic... My solution to BOA's deposit hold policy is that I now deposit all of my large checks in my Wachovia account...
I do the same with my personal account at Wachovia. I have deposited 100k+ checks in the account with no hold even though my average balance in the account is around $500. However, it probably does not hurt that I also have a CC and HELOC with them.
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