Is it true that once you receive your federal tax refund the bank puts a hold on it for about 10 days?
February 3, 2009 by Tax Forum
Filed under Questions & Answers
lorriefur asked:
This is what I’ve been hearing and I don’t understand why it would e necessary to put a hold on a government check
This is what I’ve been hearing and I don’t understand why it would e necessary to put a hold on a government check
Wayne Z on Wed, 4th Feb 2009 4:54 am
A check is a check as far as the banks are concerned.
They don’t distinguish between personal, corporate or government.
doglover on Sat, 7th Feb 2009 6:42 am
That is not true, as long as it is right from the IRS. If it is a check from one of those tax refund loan places, then they could put a hold on the check.
Telenia F on Mon, 9th Feb 2009 4:59 am
I WORK AT A TAX SERVICE AND TRUST ME THEY DONT HOLD YOUR MONEY UNLESS U OWE A LOAN . THE IRS CAN HOLD YOUR REFUND EVEN IF U OWE A PARKING TICKET.
leslewis65 on Thu, 12th Feb 2009 2:43 am
This really depends on your bank policy. A lot of banks will release the funds right away, if they recognize it as a federal rebate check. For this I would recommend going through a teller and asking them.
Most banks still tend to hold all checks for a given period until they actually have time for the funds to be transferred from the check holders account.
And it also depends on if you have any other available funds in linked accounts, such as savings or additional checking accounts.
Contact your bank about what their policy is.
tercir2006 on Fri, 13th Feb 2009 7:15 am
Depends on the bank. Generally, if it is from a trusted source, they release the money right away. But not all banks do that. Some will hold the money until the check clears.
IRS is the most reliable source, along with other government sources. Big businesses are next for trust-ability, followed by small companies who use a professional payroll service.
Least trusted are personal checks. I can give you a check for $10,000, but the bank won’t give you the money until my check clears. It might not. If the bank gives you the money, they now have to hassle you to get it back.
The only way they will release money right away (based on a personal check) is if you have funds in the account to cover the check in case it’s bad. That way, they can get their money right back, and you don’t get to keep it.
Mommy of three on Sun, 15th Feb 2009 8:48 pm
The bank does not automatically put a hold on gov. checks. I do know that some banks, depending on your history with them (overdrafts, average deposit size, etc.) will put holds on large checks. It makes absolutely no sense why, but it does happen. My old bank even held a cash deposit I made one time until the next day—cash should always be immediately avail., since there is no waiting for funds to clear another bank first. I was told that deposits are held at the bank manager’s discretion.