Can a bank put a hold on a direct deposit transaction?

Question

ok, i'm with wachovia, and my bank always puts my student refund checks on a 10 day hold. they say bc i have overdraft my account too many times in 6 months and bc the checks are of a large amount. i'm getting them direct deposited, so will they still be subject to a 10 day hold. i e-mailed the bank, and they gave me a vague response. they said "unfortunately we have no control over direct deposits". ok does that means no. and y is that unfortunate. i don't know, does anybody no more about banks then me.

Answer 1

Direct deposits can be reversed.  I had that happen to me once when my company accidentally paid me for regular hours and vacation.  My company called me to tell me that they were taking it back and sending a check instead.

So even direct deposits are not certain if a mistake was made and it is reversed.  Stop overdrafting and maybe that hold would not apply.

Answer 2

they can put a hold on it, usually they don't but with the overdrafting they are likely too, my suggestion would be to get a new bank anyways.  Try a credit union they can be allot better.

Answer 3

Banks don't put holds on direct deposits because the money is physically THERE already.  There are cases (the above guy) where the company can take it back, but in your case, they should not put a hold on those funds.