What type of hold is placed on a new account according to standard practices?

In standard banking practices, when a new account is opened, a hold of 7 business days is typically placed on checks deposited into that account. This policy is designed to mitigate the risk of potential fraud and to ensure that the funds are actually available before the customer can withdraw or utilize them.

The rationale for this 7-day hold period is based on the time it generally takes for checks to clear the banking system, allowing the bank to verify that the funds are legitimate and not subject to any holds or issues. This duration provides a balanced approach to protect both the bank and the customer while still allowing access to funds in a timely manner.

Longer holds, such as 10, 15, or even other variations, may be used for various reasons, but they are not the standard for new accounts, which could lead to inconvenience for the customer.