‘I received an insurance-claim check for $22,000’: Why on earth does it take five days for my check to clear?

by News Feed Editor | Feb 7, 2024 | Stock Market

Dear Quentin, I have a banking question for which I would like to get further clarification. I received an insurance-claim check for $22,000, written against a Bank of America account. On Tuesday morning, I deposited the check into my bank account. But none of the funds will be available until essentially five business days later.

Why does it take that many days for an internal “your branch to my account” transfer of funds? Other than verifying the availability of the funds, what on earth is happening that requires five days? Curious Customer

“Checks are an old-fashioned payment method, and rely on more archaic processes to clear.”

MarketWatch illustration

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[mwai_chat context=”Let’s have a discussion about this article:nnDear Quentin, I have a banking question for which I would like to get further clarification. I received an insurance-claim check for $22,000, written against a Bank of America account. On Tuesday morning, I deposited the check into my bank account. But none of the funds will be available until essentially five business days later.

“Checks are an old-fashioned payment method, and rely on more archaic processes to clear.”

MarketWatch illustration

…nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]