Check Hold
Policy
Cintel
Federal Credit Union has a check hold policy that enables us to protect the
financial interests of both the credit union and it's members. With today's advanced
technology, we are seeing an increase of fraud through counterfeit and stolen
checks. Our check hold policy allows us to make sure funds are available prior
to payment so the risk to the credit union and our membership is minimized.
To avoid check holds we would like to suggest you utilize direct deposit.
With direct deposit, your
funds are transferred electronically to your account, and are available immediately.
Electronic deposits can be easily verified by Magic Money or CFCU Online. Direct
deposit is safe, saves you time, and helps us all avoid long lines in our lobbies.
While Cintel Federal Credit
Union prides itself in offering free checking, and keeping costs low on many
services, these services are jeopardized when fraudulent expenses are incurred.
We appreciate your business and thank you for your patience in this matter.
POLICY GUIDELINES
Our policy is to delay the availability of certain funds that are deposited
into member accounts. during that delay, members may not withdrawal funds and
we will not use the funds to pay checks that have been written.
1. Determining the Availability
of a Deposit
The length of the delay is counted in business days from the day of the deposit.
Every day is a business day except Saturdays, Sundays, and federal holidays.
If a deposit is made on a day we are not open, we will consider that the deposit
was made on the next business day we are open. The length of the delay varies
depending on the type of deposit and is explained below.
2. Same Day Availability
Funds from the following deposits are available the same day we receive a member
deposit:
-U.S. Treasury Checks that are payable to the member.
-Electronic Direct Deposits
-Wire Transfers
If a member makes the deposit
in person to one of our employees, funds from the following deposits are available:
-Cash
-State and local government checks that are payable to the member.
-Cashier, certified, and teller checks that are payable to the member.
-Federal Reserve Bank checks, Federal Home Loan Bank checks, and Postal money
orders, if these items are payable to the member.
3. Availability of other Check Deposits
The delay of other check deposits depends on whether the check is a local or
a non-local check. To see whether a check is a local or non-local check, look
at the routing number on the check. If the first four digits of the routing
number are 0420, 0421, 0422, 0423, 2420, 2421, 2422, or 2423 then the check
is a local check. Some checks are marked "payable through" and have
a four or nine-digit number nearby. For these checks, use the four-digit number
(or the last four digits of the nine-digit number). Not the routing number,
to determine if these checks are local or non-local. Our policy is to make funds
available from local and non-local checks available as follows:
a. Local Checks…The
first $100 from a deposit of local checks will be available on the day we receive
the deposit. The remaining funds will be available on the third business day
following the deposit.
b. Non-Local Checks…The first $100 from a deposit of non-local checks will
be available on the same day we the deposit. The remaining funds will be available
on the fifth business day following the deposit.
If a member deposits both
categories of checks, $100 from the total checks will be available on the day
we receive the deposit, not $100 from each category.
4. Longer Holds May Apply
We may delay a member's ability to withdrawal funds deposited by check into
their account an additional number of delays for the following reasons:
- We believe a check deposited by a member will not be paid.
- A member deposits checks totaling more than $5,000 on any day.
- A member deposits a check that has been returned unpaid.
- A member has repeatedly overdrawn their account in the last six months.
- An emergency, such as failure of communications or computer equipment.
We will notify a member if
we delay their ability to withdraw funds for any of these reasons, and we will
tell them when the funds will be available. They will generally be available
no later than the tenth business day after the day of the deposit.
Special Rules for New Accounts
For new credit union member (accounts are considered to be "new" for
the first 30 days after the account is established), the following special rules
will apply during the first 30 days the account is open. The first $100 of a
day's deposit of local and non-local checks WILL NOT be available on
the same business day. Funds from electronic direct deposits to the members
account will be available on the day we receive the deposit. Funds from deposits
of cash, wire transfers and the first $5,000 of a day's total deposits of cashiers,
certified, tellers, travelers, and federal, state, and local government checks
will be available on the first business day after the day of the member deposit
if the deposit meets certain conditions. For example, the checks must be payable
to the member. The excess over $5,000 will be available by no later than the
fifth business day of the deposit. Funds from all other check deposits will
be available by no later than the tenth business day after the day of the deposit.
Holds on Other Funds (Check
Cashing)
If we cash a check for a member that is drawn on anther bank, we may withhold
the availability of a corresponding amount of funds that are already in that
member's account. Those funds will be available at the time funds from the check
we cashed would have been available if it had been deposited.
ATM Deposits
Funds from any deposits (Cash or Check) made at ATMS will not be available until
the third business day after the day of the deposit.
Return to the Cintel FCU Home Page
