How does a hold on a check with the bank work?

I deposited a check via ATM on 12/27/16 and because of how big it was, they put a hold on all of it except for $300, so at the end of this all I had $311 and some change in my account. I did some shopping and went home and went to sleep. I woke up the next morning (12/28/16) with an email from the bank saying my

I deposited a check via ATM on 12/27/16 and because of how big it was, they put a hold on all of it except for $300, so at the end of this all I had $311 and some change in my account. I did some shopping and went home and went to sleep. I woke up the next morning (12/28/16) with an email from the bank saying my account balance was below $25. I then checked my account and it said I had a negative balance, although I had not spent more than $120. I then look at the hold on the check and it s now the full amount of the check that s on hold. Why would the bank allow the $300 to be deposited and then take it back and put it on hold? Also, the original receipt says the full amount will be deposited into my account by 5pm on 12/29/16 (today) and as of 10:02pm PST, it has not been deposited. What is the cause of this?

Best Answer:

LovelyLittleMe: You have deposited a check that is not drawn on the government and the bank thinks that they won't be able to get their money back from you if the check bounces. The decision is based on how long your account has been open, how many times it has been overdrawn, and how much money you have in other accounts with that bank.

In your case the ATM machine followed a set of the bank's instructions and when the teller balanced the ATM the next day, your deposit was reviewed and it was decided that you don't qualify for receiving $300 up front.

Next time you have a large check to deposit and need access to the money right away, go inside the branch to deposit the check. The teller will be able to tell you right away how much money will be made available to you before the check clears. I was in a similar situation once when I received a large check from my insurance company and needed to pay the contractor the next day. The teller asked the branch manager and the branch manager decided not to put a hold on the check. I am glad that I asked because the contractor went to my bank the same day I gave him the check to cash it!

Other answer:

LovelyLittleMe:
It is possible that the check has been identified as suspicious–meaning that they don't think it will ever clear. To protect themselves, the bank has decided not to let you spend any of it. If you contact the bank they can tell you.

Where did you get the check from? From someone on the Internet?

Love big words:
You need a better bank
Erik:
Next time walk inside the branch, cash it, and then put it in the ATM. That way you get it all right away.

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