Most deposits clear on a schedule set by federal law: cash handed to a teller, wire transfers, and direct deposits are available the next business day, most checks clear within two business days if drawn on a local bank and within five business days if drawn on a nonlocal bank, and banks can extend those windows by up to seven more business days in specific situations. How long it takes for a deposit to clear depends on what you deposited, how you deposited it, and how long your account has been open. The rules come from Regulation CC, at 12 CFR Part 229, with dollar thresholds last adjusted July 1, 2025.
Deposits Available the Next Business Day
Some deposits have to be available by the next business day after the banking day you make them. Under Regulation CC, that category covers:
- Cash deposited in person to a teller
- Wire transfers and other electronic credits
- U.S. Treasury checks deposited by the payee
- U.S. Postal Service money orders deposited by the payee
- Federal Reserve Bank and Federal Home Loan Bank checks deposited by the payee
- State and local government checks deposited by the payee at a branch in the same state as the issuing government
- Cashier’s, certified, and teller’s checks deposited by the payee at a branch in the same state as the issuing bank
Even for checks that don’t fit any of those categories, the first $275 of your total check deposits for the day must be available by the next business day.1eCFR. 12 CFR 229.10 – Next-Day Availability That figure was $225 before July 2025, so older disclosures may still show the lower number.2Federal Register. Availability of Funds and Collection of Checks
Standard Timelines for Check Deposits
For checks that don’t qualify for next-day availability, the wait depends on whether the check is local or nonlocal. A local check is drawn on a bank in the same Federal Reserve check-processing region as yours. A nonlocal check comes from a different region.
- Local checks: available by the second business day after the banking day of deposit.
- Nonlocal checks: available by the fifth business day after the banking day of deposit.3eCFR. 12 CFR 229.12 – Availability Schedule
Two definitions drive the count. A business day is any calendar day except Saturdays, Sundays, and federal holidays. A banking day is the part of a business day when your branch is actually open.1eCFR. 12 CFR 229.10 – Next-Day Availability Deposit a check after the branch’s posted cut-off time and the clock doesn’t start until the next banking day. A Friday-evening deposit at a branch that closed at 5:00 PM won’t begin processing until Monday.
How the Deposit Channel Changes the Clock
The way you make a deposit affects when the clock starts, and sometimes how long the hold runs.
In-person deposits count for that banking day as long as you beat the branch’s cut-off. Federal rules let banks set that cut-off no earlier than 2:00 PM for in-branch deposits.4eCFR. 12 CFR 229.19 – Miscellaneous Most set it later, at close of business.
ATMs are different. Banks can set ATM cut-off times as early as noon; miss it and the deposit rolls to the next banking day. There’s another catch. Deposits at an ATM that doesn’t belong to your bank (a nonproprietary ATM) can be held until the fifth business day, even for a check that would otherwise clear in two.3eCFR. 12 CFR 229.12 – Availability Schedule
Mobile deposits work through Remote Deposit Capture. You photograph the front and back of the check and the bank processes the image. Without a teller verifying the check in real time, these often go through an extra review for image quality and endorsement. Many banks treat mobile deposits like ATM deposits for availability purposes; some offer faster access to established customers.
Direct Deposits and ACH
Payroll direct deposits, government benefits, and other ACH credits move through the Automated Clearing House network. Standard ACH payments settle the next business day at 8:30 AM Eastern. Same-day ACH is available for payments up to $1 million per transaction, with the final settlement window at 6:00 PM Eastern.5Federal Reserve Financial Services. FedACH Processing Schedule
Under Regulation CC, ACH credits count as electronic payments and qualify for next-day availability.1eCFR. 12 CFR 229.10 – Next-Day Availability Many banks post payroll direct deposits on the day they receive the ACH file, sometimes a day before the scheduled payment date. That’s a bank feature, not a legal requirement, so it varies.
When a Bank Can Hold a Check Longer
Even when a check would normally clear in two or five days, Regulation CC lets a bank tack on up to seven more business days in specific situations:
- Large deposits. When total check deposits for a single day exceed $6,725, the bank can hold the amount above that threshold. The trigger was $5,525 before July 2025.2Federal Register. Availability of Funds and Collection of Checks
- Redeposited checks that bounced the first time.
- Repeatedly overdrawn accounts in the past six months.
- Reasonable doubt about collectibility, such as a post-dated check or information suggesting the drawer’s account has insufficient funds.6eCFR. 12 CFR 229.13 – Exceptions
When the bank invokes one of these, it has to give you a written notice identifying the deposit, the amount being held, the reason, and the date the money will be released.6eCFR. 12 CFR 229.13 – Exceptions If you never got the notice and the bank charged you an overdraft because you tried to spend the held funds, the fees may have to be refunded.
New Accounts Under 30 Days
If your account has been open fewer than 30 calendar days, stricter rules apply. Cash and electronic deposits still get next-day availability, and the first $6,725 of qualifying check deposits made in person to a teller must also be available the next business day. Anything above $6,725 can be held until the ninth business day after the deposit.7eCFR. 12 CFR 229.13 – Exceptions
The new-account exception doesn’t apply if you already had another account at the same bank for at least 30 days. Adding a second checking account at a bank you’ve used for years doesn’t reset the clock. If you’re opening your first account somewhere new and depositing a large check right away, plan for a longer wait.
Available Is Not the Same as Cleared
This is where people get burned. When the bank makes funds “available,” it’s advancing you money on the expectation that the check will clear. The bank hasn’t necessarily received the funds from the paying bank yet. If the check later bounces, the bank will pull the money back out of your account, even weeks after you deposited it. You’ll typically get charged a returned-item fee too, and if you’ve spent the money, your account goes negative.
Regulation CC forces banks to make funds available on a schedule, but it doesn’t stop them from reversing the credit when a check is returned unpaid. This gap is what drives fake-check scams. Someone sends a check, you deposit it, the funds appear in a couple of days, you wire or withdraw money. Two weeks later the check bounces and you’re on the hook. The availability timeline says nothing about whether the check is legitimate.
If Your Bank Holds Funds Longer Than the Rules Allow
When a bank holds a deposit beyond what Regulation CC permits without a valid exception, you can recover damages. The regulation provides for actual damages (bounced-check fees, missed-payment penalties) plus statutory damages between $125 and $1,350 per individual claim. Class actions are capped at the lesser of $672,950 or one percent of the bank’s net worth. A successful claim also covers attorney’s fees.8eCFR. 12 CFR 229.21 – Civil Liability
A complaint to the Consumer Financial Protection Bureau or the bank’s primary federal regulator (the OCC for national banks, the FDIC for state-chartered banks, the NCUA for credit unions) often resolves the issue faster than a lawsuit. Save the deposit receipt, any hold notice you received (or a note that you didn’t), and records of any fees the hold caused.