Saturday, November 17, 2018
Savings Accounts Guide, Banking & Interest Rate Resource.

Reg CC, Expedited Funds Availability Act & Savings

Enacted by congress in 1987 and carried out by the Federal Reserve, Regulation CC, or simply Reg CC - the Expedited Funds Availability Act determines bank check hold periods for checks on deposit, as set forth and according to an Availability Schedule.

However, from February 26th, 2010 onward, all paper check processing is done through Federal Reserve single Cleveland office. Which in essence means there are no more "nonlocal" checks and all are "local." All the while, electronic checks are processed through the Atlanta facility. The reduction to these sole locations is due mainly to and made possible by, a high surgence of Check 21 combined with an sharp increase in electronic payment transfers made by consumers.

The Availability Schedule is based on business days excluding Saturday, Sunday and legal holidays and this specifies that:
  • The first $100 funds are available within (1) business day following deposit. With the balance of said check on the second day.

  • For deposits totalling $5,000 or greater there is next day availability with the balance of said check(s) available by the seventh day. Otherwise, for newly established accounts that are less than 30 days old it, is by the seventh day.

    Account holders having (1) new account and (1) account that qualifies could qualify as could those with (1) unqualified for exception and (1) qualified account.

  • Exceptions (available by seventh day): among these, are those such as if the account holder has had non sufficient funds if during the prior 6 months; the account was NSF at $5,000 for 2 or more days or for 6 or more days for amounts less than this. Another scenario is if the payee bank has reason to suspect the check is fraudulent, the funds won't collect, or the check is stale. Or the case of the IRD, (already returned check copied).

  • Collection items having lower risk shall be available within a business day and among these the potential expedited funds include: Federal Reserve checks (maker), United States Treasury checks, checks by municipalities (city/state/county) , certified checks, cashiers and tellers checks, postal money orders, and those from the same depository business or organization.

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