Banks have provided their customers with several options should they need their money or wish to transfer it to someone else. These options include wire deposits, e-transfer, cash deposits, and checks. Among the options mentioned, checks remain one of the most common. Check deposit is safe, fast, and pretty easy to make. But, before you embrace the money transfer method, you need to have an understanding about the timings of each method.
There is no standard time as to when banks stop processing checks as the time varies per bank. Some banks halt the process by 2 pm, while others carry on till 4 pm, or sometime in the evening.
Having a good understanding of the cut-off times for banks, including the time allotted to the processing of checks, is good. It can help you predict when a check will clear. In addition, if any issue arises along the way, panicking would be your last option as you know the process, including what to do when certain situations arise. As we progress in this article, I’ll give you a little insight into how the check processing basics, and I’ll reveal the time banks stop processing checks, including the time it takes for a check to clear. These are important information you shouldn’t miss.
What Is the Maximum Amount of Money You Can Have In a Bank Account?
What Time Do Banks Stop Processing Checks?
Check deposit is a good way to send money to family, loved ones, and business associates. It is fast, secure, and easy to initiate. But, one issue you may face when making a check deposit is knowing when the funds will clear, regardless of if you are the payor or payee.
What is a Bank Check?
A check is a written, dated, and signed tool that directs a bank to pay a certain sum of money to the bearer. The individual or entity writing the check is regarded as the payor or drawer, while the individual to whom the check is written is known as the payee. The drawee, on the flip side, is the bank on which the check is drawn.
Checks may be cashed or deposited. When the payee tenders a check to a financial institution to negotiate, the funds are drawn from the payor’s bank account. It is another way to tell the bank to move funds from the payor’s account to the payee or the payee’s account. Checks are written against a checking account. However, they can also be used to negotiate funds from savings or other types of accounts.
Check Processing Basics:
As soon as you issue a check and it is in the hands of the intended recipient, they deposit it in their bank account. If you and the recipient use a similar bank, the clearing process occurs within the bank, making the funds more or less immediately available to the recipient. However, if you two use different banks, a check processing or clearing process occurs.
If a check is drawn on an account at one bank but deposited at another institution, access to that cash takes more time as the check clearing process is handled by a third party, an intermediary bank. In this case, the check recipient’s bank asks the intermediary bank to contact the paying bank to validate that the payor has that amount of cash in his or her bank, so the check will “clear.” At that moment, the recipient’s bank converts the check’s value to cash, which is deposited in his or her account.
Having understood what a check is, including how check processing works, let’s consider the crux of this article.
There is no standard time as to when banks halt the processing of checks. The time, as expected, differs for each bank. Some banks halt the processing of checks sometime in the day; some do so at night, etc. However, generally, you expect a bank to stop processing checks during weekends and public holidays.
What Happens If the Bank Gives You Too Much Money?
What Time Do Banks Usually Clear Checks?
When you deposit a check, no one knows if the check will likely bounce, not even your bank. Thus, it makes sense to wait before spending the money, but how long is long enough, and what should you do to protect yourself from bad checks? For a novice, don’t assume you are secured from the risks, even if the money is available. Learn the time banks often put aside for clearing checks.
There are several banks in the U.S., all of which are different. That said, there is no standard time as to when banks clear checks. Generally, checks clear after one or two business days, provided there are no issues.
Time It Takes For Checks to Clear:
| Type of Check | Time To Clear | Fund Availability |
| Regular Checks At An ATM or Branch Teller | Receive a deposit receipt with the date and time of when the check will be cleared and the hold time (if any) | Can expect funds in 1-2 business days unless it is an unusually significant amount |
| Cashier’s Checks | Can clear on the next business day, unless a bank suspects there might be fraud, then could be several weeks | Can be available on the next business day in most cases |
| Money Orders | Can clear on the next business day, unless a bank suspects there might be fraud, then could be several weeks | Can be available on the next business day in most cases |
| Mobile Check Deposits | Receive a deposit receipt with the date and time of when the check will be cleared | Similar to regular checks, you can expect funds in 1-2 business days unless it is an unusually significant amount (Note: you may be limited to the amount you can deposit through mobile check deposits) |
| Post-Dated Checks | Banks will accept post-dated checks immediately and begin to process them like they would for any other regular check (Note: be aware of possible insufficient funds fees as the payer or returned deposit fees as the payee) | Similar to regular checks, you can expect funds in 1-2 business days unless it is an unusually significant amount |
If you aren’t sure of the cut-off time for your bank, don’t hesitate to contact them and make inquiries.
