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Cashing and Depositing Checks: Fees, Holds, and Electronic Conversion

This guide presents selected U.S. government consumer education from CFPB and Board of Governors of the Federal Reserve System and Office of the Comptroller of the Currency. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

Page references and publication numbers refer to the linked government publication. Figures identified by year apply to that edition, and illustrative examples are not estimates of your own benefit or costs.

Can I cash a check at any bank or credit union?

No, a bank or credit union is not obligated to cash your check. If you go to a bank or credit union where neither you nor the person writing the check has an account, the bank or credit union will often refuse to cash the check.

However, many banks or credit unions will cash a check if:

  • It is written by one of their account holders,
  • There is money in the account to cover the check,
  • The check is not more than 6 months old,
  • You are the payee shown on the face of the check, and
  • You show proper ID.

The bank or credit union might charge a fee if you don’t have an account with them.

The bank or credit union where you have your checking account may allow you to cash a check from another bank or credit union. However, it might require you to first deposit the check into your own account. If you deposit the check in your checking account, the funds will usually be available in one or two business days.

Some banks and credit unions do provide fee-based check cashing services, including to those that do not have an account with the bank or credit union.

I tried to cash a check at a bank/credit union where I don't have an account. The bank/credit union made me show identification. Is that allowed?

Yes, a bank or credit union can require identification before it cashes a check.

However, if you are at a bank or credit union where the check is from and you show the identification they require, the bank or credit union must cash the check if there is enough money in the account on which the check is written.

I received a check and tried to cash it at the bank/credit union that holds the account on which the check is written. The bank/credit union charged me a fee for cashing a check. Can a bank/credit union do that?

Generally, a bank or credit union can charge you a fee for cashing a check when you don’t have an account with that bank or credit union.

However, some states have laws that require employers to pay you in a way that enables you to get your wages without a fee. In those states, you should be able to cash your paycheck at the bank or credit union the check is from without paying a fee. To learn more about the law in your state, contact your state banking department, state Attorney General’s office, or for issues related to your paycheck, your state’s Labor Department.

If I deposit a check into an ATM, are the funds available right away?

No. There is no requirement to make funds from a check immediately available for withdrawal.

The number of days before funds are available varies depending on the bank or credit union. If you make a deposit at your own bank’s ATM, it could take up to 2 business days before you can withdraw the funds.

If you make the deposit at a different bank’s ATM, the law generally requires funds to be made available for withdrawal on the fifth business day following the banking day on which the deposit was made, though some banks or credit unions may let you withdraw deposits sooner.

How long can a bank or credit union hold funds I deposited?

The length of time a bank or credit union can hold funds depends on the date/type of deposit and the bank's policies.

Tip

Your bank or credit union may have a different timetable for check deposits made through your mobile phone (i.e. by taking a photo of the check within your institution’s mobile banking app). Be sure to ask about their policies.

Next Business Day

In general, the following deposits must be made available by the next business day:

  • Cash deposited in-person
  • The first $275 of qualifying check deposits, subject to applicable exceptions
  • Electronic payments (wire transfers and ACH deposits)
  • Government, cashier's, and certified checks deposited in-person or at the institution's ATMs
  • Personal checks deposited in-person and drawn from the same institution

Your bank or credit union has a cut-off time for what it considers the end of the business day. If you make a deposit after the cut-off time, the bank or credit union can treat your deposit as if it was made on the next business day. A bank or credit union’s cut-off time for receiving deposits can be no earlier than 2:00 p.m. at physical locations and no earlier than noon at an ATM or elsewhere.

Longer Holds

In general, banks or credit unions may hold deposits more than one business day if:

  • The account has been open for less than 30 days
  • The account has been overdrawn too many times in the last six months (check your bank for specific policies)
  • If you made a deposit at an ATM owned by another institution
  • The bank believes the deposited check may be uncollectible
  • The bank suspects fraud
  • There's an unexpected outage or emergency situation like a natural disaster
  • Your total check deposits in one banking day exceed $6,725 (the large-deposit exception applies to the excess)

For a large-deposit hold, the usual schedule for qualifying checks is:

  • $275 must be available the next business day
  • Amounts up to $6,725 must be available within two business days if the deposited check is a local check
  • Amounts over $6,725 are generally available within seven business days

The dollar thresholds above reflect the Regulation CC changes effective July 1, 2025. Special rules can apply to new accounts, certain check types, and deposits made at another institution’s ATM. Ask for the bank’s specific availability notice.

If I get paid through direct deposit, when can I withdraw the funds?

The bank or credit union must make the funds available on the next business day after the business day the bank or credit union received the deposit.

Many banks and credit unions make electronically deposited payroll funds available immediately, but they’re required to ensure the funds are available one business day after the business day they receive them. Ask your bank or credit union about its direct deposit policy for your account.

Some banks offer direct deposit advances where they loan you an advance that’s deducted from your next direct deposit. Be aware, though, that these advances may also include high fees.

I was told my check was turned into an electronic funds transfer. What does this mean?

There are several ways that checks can be processed. In the traditional check processing system, your check, or an image of your check, will be sent back to your bank or credit union. Now, many checks are converted into an electronic fund transfer (EFT), which occurs when information about the check is used to create an electronic transfer out of your checking account. You have some important additional protections when your check is converted into an electronic funds transfer.

I was at a store, and the cashier scanned my check and then handed it back to me. Is this normal?

Yes, a retailer or other person you give a check to may convert it into an electronic payment by scanning the information on your check.

The scan will capture the specific numbers on the check so that it can be identified on your bank statement. You can hold on to the check for your records, but don’t use it to make another payment, even to the same merchant, because your bank or credit union may reject it.

The retailer or other person must display a sign about their practice of scanning checks close to where it accepts checks, such as in the checkout line.

Notify your bank as soon as possible if you notice any errors or unauthorized transactions. You have substantial rights under the Electronic Funds Transfer Act.

Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

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