March 30, 2009
How come personal checks don't clear instantly?
Can you answer donaldsason's question about Checks?:
I use Versacheck to write my checks, i print on versacheck blanks with best security option… However, i sent a check to my ex-girlfriend in Ohio and she says her bank wants a 11 day hold, another case in another state… Why does this happen? Anybody knows a better software that might probably have my checks in a cashiers check format?
Filed under More Checks Answers by admin
Comments on How come personal checks don't clear instantly? »
Great question! The answer is that the banks are trying to protect themselves against fraud. That's why they hold the check for so long. Also, they want to screw you and your ex- out of 9 days of interest they'll be making by loaning that money out to other financial institutions.
Read more about this in "Personal Finance 101 - A Beginner's Guide." You can get the eBook at or Amazon.com. Lots of great information on personal finance and the rules to personal finance.
She really needs to move. There is a statutory maximum hold time in New York. Maybe Ohio needs one, too.
The bank is using her money as an interest-free loan from her for that time.