Or has it? This interesting WashingtonPost article might make you think differently about what it means when the bank tells you a check you have deposited has cleared. When a check is deposited the bank must make funds available to their customers within a given amount of time.
The article has this to say:
Federal rules require banks to release funds from a consumer's deposit quickly, usually within one to five business days, depending on the kind of check. However, it can take weeks before a bank discovers a check is fraudulent.
The part depositors need to be aware of is that even if you ask specifically that the funds are available for withdrawal and there is nothing wrong with the check you will still be responsible weeks later if the check was bogus.
The article goes on to say:
Wagner and other bank officials around the country all note that both the deposit receipt and the initial agreement customers sign when setting up an account make it clear that if any deposit item is returned, for any reason, the customer is responsible.
Bank of America's deposit receipt, for example, says: "All items are credited subject to verification, collection, and conditions of the Rules and Regulations of this Bank and as otherwise provided by law."
Read the full article here: WashingtonPost.com.Know More about finances at BizCreditPolicy.com.
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