When managing large deposits, how many business days should a hold typically be placed?

When managing large deposits, it is common practice to place a hold for a period that typically allows the bank to adequately verify and process the funds. In this context, a hold of 7 business days provides sufficient time for the institution to ensure that the check or deposit clears and that there are no issues related to fraud or insufficient funds.

Holding a deposit for this timeframe helps safeguard both the bank and the customer from potential complications that could arise from the immediate availability of deposited funds, especially if the deposit is from an external source or involves a large amount. This policy is in line with regulatory guidelines that allow banks to place longer holds on larger deposits to mitigate risk and ensure financial stability.

Other durations such as 2, 5, or 9 business days do not align with standard practices for large deposits in the banking industry. A hold of 2 days is generally considered too short, while 9 business days would be excessively long for most checks or deposits under normal circumstances. Hence, 7 business days is the most appropriate and commonly accepted duration for holds on large deposits.