Using the Funds Availability Act, determine when the funds represented by each o

Question

Using the Funds Availability Act, determine when the funds represented by each of the following checks is available to the payee/depositor?

            A monthly check issued by the social security administration to a retiree.  

            A check payable to a resident of Kansas where the drawee bank is a California bank.

            A paycheck electronically transferred to the employees account.

            Cash deposited into a customer account at an ATM machine           

            A check deposited in an institution in the same city where the drawee bank is located.

Explanation / Answer

As per fund availability act 1987 fund represent available, Next business day: most banks say that they “generally” make funds available on the business day after you make a deposit, but there are exceptions. Cash deposits made to a bank employee must be made available within one business day (and those deposits are often available immediately).Certain types of checks must also be available in one business day: official bank checks like cashier’s checks, Checks issued by the U.S. Treasury (such as your tax refund or Social Security)Checks for $200 or less Checks drawn on the same bank that you’re depositing toUSPS money orders If the total amount of deposits by check in one day is more than $5,000, or if a check is endorsed by anybody other than the payee to whom it was issued, banks can add a hold.

Cash deposited at ATM - Electronic deposits like wire transfers and direct deposit are also generally available within one day.

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