A funds availability policy is a banking policy that governs the time between when a customer makes a deposit and when they may use the funds from that deposit.  Regulation CC requires that financial institutions provide customers who have a transaction account with disclosures stating when their funds will be available for withdrawal.

Each bank or credit union will establish their own policies as to when it will let a customer access money after they deposit a check, but federal law under the Expedited Funds Availability Act establishes the maximum length of time a bank or credit union can hold the funds.

Congress passed the Expedited Funds Availability Act (EFAA) in 1987 to address concerns about the lengths of holds banks were placing on checks deposited by their customers.  The EFAA establishes maximum permissible hold periods for checks and other deposits.  Some banks or credit unions may make funds available quicker than the law requires.

The Federal Reserve Board’s Regulation CC implements the funds-availability and disclosure provisions of the EFAA.  Part of the disclosure provisions in the law state that before an account is opened at a depository institution or upon the request of any person, the depository institution shall provide written notice to the potential customer of the specific policy of such depository institution with respect to when a customer may withdraw funds deposited into the customer’s account – the Funds Availability Policy.

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