Floating Check Banking Issue!

Question

I had about $80 in my bank account and i wanted to buy something online for $130, so i waited until i got paid for working and deposited a $250 check into my account, so i had about $330 in my account. About two hours later i go to purchase the item but was denied. The next day i went to my bank and asked the teller why i cant spend my money and she said that my check was floating and would be avlable on the 5th. So i waited and i still dont have my money. Usually when i deposit checks i am able to spend it immediately, but this time they are holding my money or something. I am 17 and am new to this stuff so i would appreciate it is someone could clarify what happened and if i did something wrong. Also on my online statement the bank says i have a total balance of 330, but an available balance of around 80. Also, I tried to purchase the item with a debit card.Thank you for any help!

Answer 1

You deposited it in your account, but until the bank gets confirmation from the other bank that the money is there and then sent, it will remain a pending (unavailable) amount.  The difference between when you deposited it and it clears is called the float.  Thus your available balance is the only money you can access.  They won't pay on a pending item.

The reason is that someone could scam the bank.  Suppose you deposit a $1000 fraudulent check.  If the bank immediatly gave you access to it, you could withdrawl or debit the amount out and when the bank discovered the fraud, you've already run off with the grand.  So the bank waits to give you access to it until they have it in hand.

Answer 2

check clearing takes time. debit cards take none. your deposit has not cleared yet.

two things to do.

1. go direct deposit if available. once your bank gets used tot he idea that the deposits are going to be good, they become available sooner.

2. cash the check and pay cash. if you have a decent relationship with the bank, they might trust a payroll or gov't check to let you do this. if you just opened the account recently, probably not.

Answer 3

Realistically a bank can hold uncollected funds for almost 30 to 45 days even thou your account is credited. Sometimes banks do have system failures which they will never admit, but yes it happens.I'll give you and example how the system works.  Someone sends you a certified check, money order or cashiers checks for something you are selling and says send me half back by wire transfer. You deposit the money in your bank, it is credited to your account but you really can't use it.  The bank has up to 45 days to actually get the money for the check, if you are allowed to use the money and later the bank determines it is fraudulent you will be responsible for the amount you deposited. This is an extreme example but it's the same principle.

The writer of the check may also have a problem with his account, money not deposited or cleared on his end.