Check hold

Check hold,

Definition of Check hold:

  1. Number of days a bank can legally hold funds from a deposited check, before crediting them to the depositors account. It is normally equal to the period a check takes to pass through the banks clearing cycle.

  2. The check holding period is generally equal to the number of days it takes for the check to go through the bank's clearing cycle.

  3. A check hold denotes the maximum number of days that a bank can legally hold the money from a deposited check. After the check hold period has expired, the bank must credit the funds to the account of the party making the deposit.

Meaning of Check hold & Check hold Definition