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Switched to a credit union for business banking, got hit with a 5-day hold on deposits
Left my big bank last month for a local credit union in Denver. They held my client's $2,000 payment for 5 business days without warning. Is this normal for smaller institutions or did I pick the wrong one?
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charles_mitchell8d ago
Maybe it's just me but 5 days seems pretty standard for a smaller bank or credit union. They don't have the same systems as the big guys so they take longer to verify stuff. You might want to ask about their deposit policy up front next time though.
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matthewdixon7d ago
Yeah I've been through this exact thing. My credit union held a $3,500 check for a week at first, but after a few months of steady deposits they dropped the hold to overnight. You gotta ask them if they can adjust your hold limit based on your deposit history, some of them have a policy where they'll reduce it after 90 days. Also, ask if they do early release on certain deposits, like if the client's bank is one they trust. Took me three calls to finally get someone who knew the rules.
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