Got a chuckle out of former Clinton Labor secretary Robert Reich running into the real world with a Bank of America account. Reich was shocked — shocked — to find that BoA put a two-week hold on a $9,000 check he deposited. That’s standard operating procedure for BoA, along with many other banks, each of whom count on consumers taking that junk.
This is the 21st century. Checks are cleared in a matter of hours, perhaps a day or two. A two-week hold is pure float — i.e., profit — for the bank.
If a bank ever tries to do that to you, ask to speak to a manager. Tell them there is absolutely no way you will accept a two-week hold because you know that the various electronic settlement services will have the transaction cued and ready for clearance in a few hours. That has always worked for me, even for five-figure real estate transactions and even after being told “it is just our policy” to hold checks.
