New Federal Regulations Will Mean You Can Get to More of Your Money Sooner | Banking Advice

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Even if you’ve never heard of Regulation CC, you have probably seen its effects. This Federal Reserve rule governs how much and how quickly banks give you access to check deposits.

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Regulation CC is the reason you can get to the first $200 of a check deposit the next business day. Here’s some good news: As of July 1, that amount goes up by $25.

The full amount of your check deposit is not available immediately because it is subject to check holds, whether you deposit it at a bank branch, through an ATM, or by taking photos of the check and using a bank mobile app.

All checks are examined by a central clearinghouse that is operated by the Federal Reserve. When a bank receives the credit, it makes the remainder of the money available to consumers.

What Are the New Regulation CC Rules?

Procedures for when your check deposit clears may vary by bank or credit union, but thanks to Regulation CC, it is standard that a partial amount is available almost immediately. To account for inflation, the rules call for the partial amount to go up as of July 1.

The new partial amounts that will be available to consumers include the following:

  • $225 instead of $200 the next business day.
  • $450 instead of $400 and $5,525 instead of $5,000 within two business days after the deposit.

Although the deadline to implement these new amounts is July 1, some banks are making the newer amounts available in June. The adjusted amounts may help cash-strapped consumers on a tight budget.

Should You Expect a Notice From Your Bank?

Some banks and credit unions that have opted to put the new rule into effect before the July 1 deadline are notifying customers in various forms – via email, at their websites or on monthly statements.

Here are the policies from several larger banks.

Chase: Statement notices began on May 29 for the bank’s consumer and business banking customers, while the private bank customers were notified in March, says Paul Lussier, vice president, external communications, digital and technology for Chase. The new amounts are currently in place, he says.

Wells Fargo: Customers are being notified via their account statements. The new amount availability will occur starting June 20, the bank says. The funds availability schedule appears on customer receipts and hold letters.

BBVA: Customers are being notified via their monthly account statements. Plans are to make the change effective on June 22, says Al Ortiz, vice president, external communications at BBVA. The date could change but will occur by July 1.

Ally Bank: The changes are effective on July 1. Ally says customers are being notified via their June statements, the frequently asked questions on the website and the deposit agreement.

Keep Track of When Your Deposits Are Available

Banks provide details of the rules for when your funds are available on their websites and on receipts if you make a deposit at a branch. Customers who recently opened their first checking or savings account could face a slightly longer delay.

Government and cashier’s checks will clear the same day they are posted to the account.

Knowing when the funds from a check are available helps people avoid overdrafting their accounts, especially if they are making purchases or paying bills from the same account. Nationally, overdraft fees average $33 and can add up quickly and drain your balance.

Check your balances by calling the bank, at the ATM when you make a deposit or withdraw cash, by checking online, or through the bank’s mobile app.

Ways to Make Your Funds Available Sooner

Consumers who want to avoid a longer wait for funds to be available can make deposits in cash or from a cashier’s check.

Deposits made in person at a BBVA branch may be made available sooner than deposits made at an ATM or by mobile deposit, Ortiz says.

At Chase, checks that are deposited in the branches, in ATMs or through the app are typically available within one business day. Funds transferred by electronic direct deposits such as payroll are available immediately. Inquire with your employer whether you can be paid via direct deposit.

Depositing a check via a mobile app is also faster if the checks are digitized immediately.

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