§4003 Safeguard Exceptions

Summary

New deposit accounts get faster access to some kinds of money for the first 30 days after the account is opened (or a shorter time if the Federal Reserve Board and the CFPB Director decide). Cash, wire transfers, cashier’s/certified/teller/depository/traveler’s checks, and certain government checks must be available the next business day. If those kinds of checks total more than $5,000 in that period, only the first $5,000 is available the next business day and the rest must be available within 8 business days. Other checks may be handled differently than the usual rules. The Federal Reserve Board and the CFPB Director can make rules that create exceptions for very large check deposits over $5,000 in one day, checks that were returned and redeposited, or accounts that are often overdrawn. A bank can also delay availability if it has good reason to think a deposited check won’t be paid. If the bank thinks a check won’t clear, it must keep facts that justify that belief and give notice. The bank cannot charge an overdraft fee for a later shortfall if it did not give the required written notice at deposit, the overdraft only happened because the money was held, and the bank later collects the check amount. In emergencies like communication outages, other banks stopping payments, war, or similar events, the bank can also delay availability if it acts carefully. When any exception applies (except the first-30-day rule), the bank must tell the depositor the hold time and why. Notices must be written and given immediately if the deposit was made in person, or mailed by the close of the next business day if not; other timing rules apply in some cases.