How Long Does it Take for a Check to Clear?

It can be hard to imagine that people still use checks in the age of digital banking and payment apps. But there might still be times where you’ll encounter this valuable slip of paper. 

Understanding how checks work and how long does it take for a check to clear is important. Especially when you’re paid with one and need to know when the funds will be available in your account. 

Here we help you understand the basics of checks, the risks you need to watch out for, and answer the question “how long does it take for a check to clear?”.

What is a Check?

Before the rise of digital banking, people most often used checks to make large payments instead of paying with cash. A check is basically a piece of special paper that banks issue to account holders which they can use to write out payments to people and businesses.

The check will be signed by the payer and the payee then takes the check to their bank for the funds to be deposit into their account. The check gives the bank permission to transfer money from one bank account to the other. 

How Quickly Will a Check Clear?

After you’ve deposited the check with your bank, it will take around two business days (any weekday that isn’t a public holiday) for the check to clear and for you to see the money in your bank account. You might even have access to a portion (up to $200) of the money quicker – either immediately or in one business day – depending on the bank’s policy. 

Cashier and government checks tend to clear faster. This is also true for checks where the payer and payee have accounts with the same bank. Or if you, for example, deposit a check from the same payer every month, establishing a reliable pattern of payment.

The holding period (the time before the money clears and reflects in your bank account) will, however, differ from bank to bank. Certain banks might have a cut-off time each day when the clock on the holding period starts to run. Always ask your bank about their check policies and expected turnaround time for clearing checks if you want to plan ahead. 

Finally, keep in mind large payments (amounts above $1 500) could take up to ten days before it reflects in your bank account. 

You might be able to speed up the process if it’s urgent to get the money quickly. To do this you’d have to visit your bank. The bank might override the holding period for you if you have a good relationship with them, if the transfer has been withheld for too long or if they can verify the check quickly on the day of the deposit. 

Reasons a Deposit Might Be Delayed

Before you spend the money from the check, it’s important to know the payment of funds into your account could be delayed for various reasons. Sometimes a check could raise certain red flags for a bank that need to be checked before the payment can clear. 

The holding period and possible delays are a way for the bank to ensure the person who wrote the check has enough funds in their own bank account before it can be transferred to you. These holds on the transfer are designed to protect you from spending money that might not actually come in if the check bounces. 

Delays could also be caused by large payments that require vetting, and could also depend on how long you have been with your bank and if they’ve had any issues with your account before (like overdrafts). The same can be said for your payer (the person writing you the check) and their standing with their or your bank.

The bank might also delay the check from clearing if it’s deemed an unusual payment method for you or if it’s the first time you’re depositing a check from that specific payer. Another reason for the bank holding the check could be that it’s a check from an international bank. This requires a lengthier verification process as money has to cross country borders. 

Depositing the check through an ATM or mobile banking app can also cause delays as it takes longer for the check to get to the bank and for them to verify it. 

Risk of Bounced Checks

Unfortunately, checks don’t always clear. Getting paid by check comes with an inherent financial risk as the check could bounce due to insufficient funds in the payer’s bank account. You would only find out about the insufficient funds a few days after depositing the check. By then you might have already provided the service or goods you are supposed to get paid for. 

A cleared check also doesn’t necessarily mean the funds have been paid into your account just yet. Rather, the bank decided to provide the funds on credit as there’s a high expectation that the funds will be paid and no red flags have been raised. 

But if you spend the money immediately and the check ends up bouncing, you’ll be liable for the money spent and any charges the bank might impose on your account due to overdrafts or insufficient funds. If you’re not able to pay back the money spent, it could lead to your account being suspended, limiting the use of your cards, and even bouncing payments that you yourself are trying to make. 

That’s why it’s important to wait a bit before spending the money, especially if it’s the first time receiving payment from the check writer. 

How to Find Out if a Check Has Cleared

Of course, you want to be able to see if and when your check has cleared. First, you can see the expected date of clearance on the deposit receipt your bank teller or ATM should have given you after you deposited the check. It’s important to hang on to this receipt until the check clears as it will give you an indication of whether there might be a problem with the check if it takes longer to clear. 

It’s generally advised to only contact the bank once this date has lapsed and the check hasn’t been cleared yet. You can contact your bank either by phone or by visiting a branch in person. 

Alternatives to Checks

If you are concerned about the risks around getting paid by check, there are fortunately a myriad of other payment methods that tend to be faster and cheaper than paying with checks. This ranges from more traditional routes to digital ones.

These alternative payment options include:

• Direct deposits
• Money orders
• Wire transfers
• Digital person-to-person payments, and
• Peer-to-peer mobile payment apps.

If you are feeling uncomfortable about using a check, you can always ask the payer to use one of these routes for payment. Especially if you don’t have time or patience to make the check deposit yourself. It could also protect you from fake check scams and dodgy bank accounts. 

Conclusion

If you’re unsure about accepting a check from an unfamiliar payer, always check with your bank about their check policies and follow up with the payer’s bank on whether the person actually has an account there. 

Whichever payment option you go with, the more you know how each one works the better you can protect your finances from unscrupulous characters. Use the information above on how long does it take for a check to clear to plan your cash flow in advance if you enter a payment arrangement by check. And remember to not spend the money before you’re 100% sure the check has cleared. You don’t want to be caught in an uncomfortable cash situation.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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