How Long Does It Take a Mobile Deposit to Clear?

Ever deposited a check using your mobile app and wondered, "Why aren't the funds available yet?" Mobile deposits have made banking more convenient than ever, but the clearing process isn't always instantaneous. Let's dive into how long it typically takes for a mobile deposit to clear and what factors can affect that timeline.

Key takeaways

• Mobile deposit clearance takes 1–5 business days as banks verify the check
• Some checks aren't eligible for mobile deposit, like international checks and U.S. savings bonds
• Banks may place holds on deposits for large amounts or suspicions and will notify you

Understanding the general clearance time

Generally, mobile deposits take around one business day to clear and become available for use. For example, if you deposit a check before your bank's cutoff time—say, 9 pm PT for Wells Fargo—your funds might be available the next business day.

However, in some cases, it can take up to five business days. But why the variation? Banks need to verify the check to ensure it's legitimate and that the funds are available from the payer's account.

This process can vary between institutions and depends on several factors. These days, it might seem odd to still be using checks.

If you’re anything like my friends and I, we default to Venmo or other digital payment methods. But each year, billions of checks are still written in the US alone - so let’s dive into the factors affecting how quickly those checks are processed.

What factors affect clearance time?

Several elements can influence how long it takes for your mobile deposit to clear.

Depositing after the cutoff time

If you make a deposit after your bank's cutoff time, your check won't be processed until the next business day. This delay means your funds will become available later than if you'd deposited before the cutoff.

Check amount

Larger checks often take longer to clear. Checks over $5,525 (an amount established by banking regulators) may require additional verification, which can extend the processing time. Banks want to ensure that larger amounts are legitimate before releasing funds.

New customers

Are you new to the bank? If so, you might experience longer hold times.

For instance, Schwab may hold checks for up to four business days for new customers. As you establish a history with the bank, these hold times may decrease.

Endorsement and accuracy

Properly endorsing your check and entering the correct amount are crucial. Mistakes or missing information can lead to delays. Always double-check that you've signed the back of the check and that all details are accurate in the mobile app.

TuitionHero Tip

Did you know that the concept of mobile check deposits was influenced by efforts to digitize the check-clearing process after 9/11? The disruption of air travel made it difficult to transport physical checks, leading to the passage of the Check Clearing for the 21st Century Act (Check 21 Act) in 2004. This act paved the way for electronic check processing and mobile deposits!

Are all checks eligible for mobile deposit?

Not every check can be deposited via your mobile app. Most banks won't accept:

• International checks
• U.S. savings bonds
• U.S. postal money orders
• Remotely created checks

Additionally, checks must be payable to you and properly endorsed. Trying to deposit an ineligible check can cause delays or lead to rejection.

What happens if there’s a hold on my deposit?

Banks often notify you if there's a hold on your deposit, providing details on how much is held and when those funds will be available. Holds can occur for several reasons:

• Large deposit amounts
• Frequent overdrafts
• Suspicion that the check may not be paid

If you're concerned about a hold, it's best to contact your bank's customer service for clarification.

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Best practices for mobile deposits

Want to ensure your mobile deposits clear as quickly as possible? Here are some tips:

• Deposit before the cutoff time: Check your bank's cutoff time and aim to deposit before then.
• Double-check your information: Make sure the check is properly endorsed and that you enter the correct amount.
• Use good lighting: Ensure your check images are clear and legible to avoid processing delays.
• Keep the check for a few days: After depositing, store the check in a safe place for at least five days. Once you're certain the deposit has cleared, you can destroy it.

Dos and don'ts of mobile deposits

Why trust TuitionHero

At TuitionHero, we aim to simplify your financial journey. Whether it's navigating mobile deposits, understanding credit options, or securing student loans, we provide clear, helpful information to make managing finances easier.

Frequently asked questions (FAQ)

What should I do if my mobile deposit is rejected?

If your mobile deposit gets rejected, double-check the check for any issues, like missing endorsements or unclear images. You can then attempt to re-deposit it or bring it to a branch for in-person help. Your bank should inform you why the deposit was rejected, allowing you to make necessary corrections.

Can I speed up the mobile deposit process if I need the funds urgently?

Yes, some banks offer options like expedited processing for a fee. Check with your bank to see if they offer this service, as not all banks do. Otherwise, making deposits early and during business days can also help reduce delays.

Why is there sometimes a delay on weekends and holidays?

Bank processing generally pauses over weekends and holidays because most banks operate on a business-day schedule. Deposits made after business hours or on these days are typically processed the next business day, which can cause a delay.

Is there a risk of overdraft if I spend funds before my deposit clears?

Yes, if you assume your check has cleared but it hasn’t yet, you could incur overdraft fees if you spend the anticipated funds. Always wait until your bank confirms that the funds are fully available to avoid this.

How can I tell if my mobile deposit will require a hold?

Banks may place a hold based on factors like check amount, account history, or suspicion of fraud. If the deposit amount is large or if you’re a new account holder, you might expect a hold. Your bank will notify you if they place a hold, detailing when you can expect funds to be available.

Final thoughts

While mobile deposits offer incredible convenience, the time it takes for funds to become available can vary. By understanding the factors that affect clearance times and following best practices, you can ensure your money gets into your account as quickly as possible. So next time you're waiting for a mobile deposit to clear, you'll know exactly what's going on behind the scenes.

Source

• Check hold times
• SoFi check deposit times
• SouthEast bank deposit times
• Chime deposit times
• Wells Fargo deposit times
• Check 21 Act