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? asked in Business & FinanceTaxesUnited States · 9 years ago

Will the bank put a hold on a direct deposit from the IRS?

We're anticipating a large tax refund this year due to our adoption tax credit (it will be greater than $10k).

It is going to be direct deposited into an old bank account that we will be able to reopen once the direct deposit arrives.

Will the bank (I've gotten 2 different answers from the bank is why I'm coming here) put a hold on funds from the IRS?

One person says that deposits that large will be subject to bank holds, and the other person says that no, anything from the IRS, no matter how large, is considered good and there will not be a hold.

We just want to be able to pay some bills...I mean, we don't even need cash...temporary checks from them will be fine until our debit card comes in.

If we write temporary checks, if the checks go past the "hold" amount, will they honor them or decline them? We don't want a bunch of hot checks on our record, obviously!

Thanks for any help you can provide!


Cathi, did you not read where I stated I got 2 different answers from the bank? That's why I'm here.

Update 2:

Thank you Bostonian, I was so hoping you'd answer!

3 Answers

  • 9 years ago
    Favorite Answer

    ACH transactions must be made available no later than the beginning of the next banking day, regardless of the size of the deposit.

    Federal Reserve Board of Governors Regulation CC covers funds availability of deposits. Electronic deposits must be made available no later than the beginning of the next banking day after receipt. (Other FRBG regs may require immediate availability but CC is the one that all tellers and bank staff have drummed into their heads from day one.)

    Whenever you have questions on funds availability you should ask the branch manager. Ask him or her for a copy of their Regulation CC disclosures. They must have this available, and normally you are given a copy of the current rules when you open the account but they do change over time.

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  • 9 years ago

    I bank with Chase, I have asked my bank this same question. They said there are no holds on anything coming from the IRS.....It is as good as a cash deposit and that it show up immediately in the account.

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  • 9 years ago

    Ask the bank

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