9/5/2023 (Updated: 1/28/2026) - Personal Banking
Imagine you’ve just received a bonus check from work, and you’re excited to deposit it into your bank account. As you make your way to the bank, you might wonder when exactly you’ll be able to spend that money. That’s where understanding check holds comes into play. Whether it’s a that bonus check, a birthday check from your great aunt, or any other type of check, we’re answering some frequently asked questions about check holds so you can confidently manage your finances.
Occasionally, SouthState may place a hold on a check deposit. The decision to place a check hold is based on several factors such as your account activity, history of frequent overdrafts, or any external information the bank may receive about the check, like if the check has been returned previously or the account it’s drawn on has insufficient funds. Other reasons the bank may elect to place a hold is if you recently opened your account, your deposit is unusually large, or your account has recently been overdrawn.
A hold may also be placed if the bank is concerned that the check may not be paid. For example, if the check is post-dated, issued more than six months ago, or appears to have been altered, this can be a cause for the bank to take additional time to review the check.
Placing a hold protects you and the bank if the check is returned. If a check is returned unpaid, the amount of the check will be deducted from your account. If a hold was not placed and you already spent the funds, your account balance could become overdrawn and you would be responsible for repaying the negative balance, in addition to overdraft fees. Holds are a way to protect you from unknowns and potentially avoid fees.
The amount held and how long the hold will last varies depending on several factors, including the type of check, who issued the check, and the dollar amount of the check. The type of account the check is being deposited into and why the hold is being placed are also considered.
Banks are required to disclose their Funds Availability Policy to their customers both when a checking account is opened and in their branches. The Funds Availability Policy will explain the bank’s standard practice for making deposited funds available, usually no later than the next business day, and the conditions when a hold may apply. Signage at teller windows and ATMs will also include information about the possibility of funds being held from a deposited check.
If a bank elects to place a hold on a check deposited into a checking account, the amount of the hold and how long it will last are limited by law. Also, the bank is required to provide you with a written notice that explains the reason for the hold and when the held funds will be made available. It is important you review the information in the notice before spending the amount deposited to avoid incurring any overdraft fees or returned items.
Checks deposited into money market or savings accounts may also be subject to a hold. While there is no law requiring banks to provide a notice of the hold, many do so as a courtesy to their customers.
If you are concerned about a hold being placed on a check you are depositing, you should talk to the teller before making the deposit. You may be able to provide information about the check or when you need the funds to be taken into consideration.
If a hold will be placed, rather than depositing the check, you could choose to cash the check at the bank it is drawn on, if there is a branch nearby. To avoid holds, rather than a check, you could request the payer send you the money electronically.
Understanding funds availability will help you accurately gauge when your deposited funds will be available. So, the next time you deposit that eagerly-awaited check, you'll have a clear idea of when those funds will be at your disposal.
In observance of Veterans Day, SouthState locations will be closed on Wednesday, November 11. SouthState Customer Care will be open 8 a.m. - 5 p.m. ET. Transactions initiated or scheduled on a holiday are processed the next business day.