What is a hold period?

When opening a new account with a bank or credit union, including through Raisin, your deposits may be subject to a funds availability policy, which will be explained in detail in your specific product’s terms. This availability policy lets you know how long it may take for you to access funds that you have deposited into your account.

Federal Regulation CC provides the basis for banks to set their funds availability policies. This regulation dictates both the timeline for banks to make deposits available to customers and the rules for disclosing the policies to customers.

These policies can vary based on a few factors. For instance, the policy may take into account the type of deposit. This means that you could see different policies for, say, a high-yield savings account and a fixed-term CD offered by the same financial institution. The policy may also take into account the amount deposited, either holding it all or a portion for a set period of time.

Why do banks and credit unions hold funds?

The purpose of a funds availability policy is typically to ensure that the deposit is valid before giving you access to the money. The hold period helps to cover the amount of time it could take for money to be transferred to the deposit-taking bank.

Not only does this hold policy protect the bank, but it can also help to protect you from withdrawing funds against your balance. This is probably most evident when it comes to your checking account, where you could potentially write a check or pay a bill in excess of the actual funds in your account and be subject to overdraft fees.

How long can a bank or credit union hold funds?

The amount of time your bank or credit union can hold funds for your deposit into an account opened through Raisin can vary. The exact time you can expect your funds to be held is outlined in the terms of your product. Please consult your specific product’s terms for more details.

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*APY means Annual Percentage Yield. APY is accurate as of {todayDate}. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.

Raisin is not an FDIC-insured bank or an NCUA-insured credit union, and does not hold any customer funds. Funds deposited through Raisin are exclusively held at federally insured financial institutions. FDIC or NCUA deposit insurance coverage covers the failure of partner banks and credit unions on the Raisin platform.

Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered through Raisin.com. Central Bank of Kansas City (CBKC), Member FDIC, d.b.a. Central Payments is the Service Bank. CBKC, Lewis & Clark Bank and Starion Bank, each Member FDIC, are the Custodial Banks.