Why does it take 5 days (or longer) for a check to ';clear';, but withdrawals happen in a few minutes?

Because, banks would much rather take your money than let you use it, for yourself.. Most banks can deposit that money in a special account, and draw interest off of it, for the 5 to 10 days that it takes to 'clear', and put it to use as THEY want to.Why does it take 5 days (or longer) for a check to ';clear';, but withdrawals happen in a few minutes?
at least, in MY opinion.. LOL

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Why does it take 5 days (or longer) for a check to ';clear';, but withdrawals happen in a few minutes?
It's a two-pronged answer, and both ways make more moolah for the bank.


the 1st, which has already been addressed, is the bank holding the funds wants to hold it as long as possible to collect interest. (there is a law that the greed mongers of yore helped to get passed which allows this.) They pay you 0.25% yet make 5, 6, 7% on loans, so when it's in their possesion, it's worth more.


the 2nd reason is when debits can happen within minutes, the chances are much greater that you, thinking that check you deposited last week is good, will withdraw on it and not have sufficient funds to cover it, so the bank can charge you outragous fees while transferring YOUR OWN MONEY from an overdraft ptotection account they've already convinced you into opening up.


Either way, it's a money maker for the greedmonger banks, and chase leads the way.
Checks from other account holders in my institution


Do not take 5 days ,


But those from Other banks and especially out of state


Need time to process and verify funds .





With drawl is just that , and it is recorded as it happens .





Not sure What the mystery here is ,


Are you new to banking ?


{ your avatar looks old }





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