When you deposit a check into a bank, a waiting period is usually assessed. This waiting period, sometimes called a clearing period, is the length of time the bank will hold checks in order to assess whether or not the funds are available. There are also a few other reasons why a bank may hold checks before making the cash available.

A few different factors influence the waiting time for a check deposited into your account. Where the check comes from is one such factor. Checks are classified by the bank as either local or non local. Banks hold checks for specific periods of time based on this designation.

Checks are designated as local when they are deposited within a bank’s geographical region. This specified region can include many different areas within the state where the bank is located. Banks are allowed to hold checks that are locally deposited for one day. After a local check has been deposited, the funds should be available by the morning of the second business day. The bank should not hold checks that are local for longer than one day.

Non local checks are deposited outside of the bank's specified region. These checks take longer to process. After a non local check has been deposited, the funds should be available by the morning of the fifth business day.

If you think that your bank is taking longer than expected to clear a check, ask for the bank’s availability schedule. This will explain exactly how long the bank will hold checks before the funds are available. Maximum check holding times are mandated by law. A bank is not allowed to hold checks for longer than the law stipulates. The bank is free to cash checks earlier than the maximum legal time limit.

Certain types of checks should be available immediately, or at the latest, the day after deposit. Paychecks are usually processed electronically and should be available by the next business day. Money orders from the U.S. Postal Service should also be available by the next day. Checks drawn by the U.S. Treasury and deposited straight into a payee account are also available the following day. There are numerous other government related checks that should also be next day available, and a list of these can be obtained from any bank.

Also, when assessing how long your bank holds checks, be sure to take into account their business hours. A bank’s business day is measured by its opening hours, and each bank may have its own specified cut-off times. A check deposited at a certain time may be dealt with on the same day in one bank, but at a different bank, it may not be. You should be able to determine a bank’s cut-off time by asking a teller. All of the factors discussed above go into making up how long a bank can hold checks until the cash is placed into your account.