Exact Answer: 2 Business Days
Whether it’s about depositing or withdrawing cash or taking loans, people come to the bank to deal with it. Banks help needy people in improving their financial problems.
Even though it has been made easier to transfer funds through smartphones, in reality, it may take days for the money to be available, just like checks. Sometimes a good old-fashioned paper can seem like an eternity to clear.
With the modern technology of online banking and bill paying, written checks seem to have disappeared.
How Long Does It Take To Deposit A Check?
|To deposit a check in the bank||2 business days|
|Check’s validity||Six months|
Everything is available in online mode. Everything had been made easy for the customers through online communication.
Written checks have become less and less common since people are opting for electronic banking. However, for a merchant, like cash, the beauty of checks is that it costs nothing to accept.
Now, talking about the check, it is a written document that orders a bank to pay a specific amount of money from the account owner to the person in whose name the check has been issued.
A check, in reality, is a contract between three parties, that is, the maker, the payee, and the payer. A check is usually written and signed by the maker ordering the bank to pay that amount to the payee on the check face. No extra person is involved in this contract.
The banker would provide a receipt for that transaction which says when the funds will be available. The receipt must be kept in handy until the check clears.
However, checks are one of the most used modes of payment by companies as well as consumers worldwide, especially in certain countries such as Singapore, the US, and China.
Why Does It Take So Long To Deposit A Check?
After a check is deposited, it goes through a long journey. However, checks are found to be useful, but at the same time, they can also become worse. Some people used to prefer paying with a check instead of carrying cash or a credit card.
It’s rather the safest mode of payment without necessarily carrying a huge chunk of cash. It is also easy and convenient as one just has to specify the payee, amount, date of the check, and signature. There’s also no need for a swiping machine for validating payments like in credit cards or debit cards.
People also appreciate the use of checks as they can be sent through a courier, which enables transactions between the payor and the payee. Otherwise, the customer has to visit the bank to send payment if cash is needed.
It is a trusted mode of payment provided that the check is funded.
It is the account holder’s responsibility to ensure that it is funded and will not bounce later. One can also pay in advance as one can issue post-dated checks and serve as a guarantee that there is a payment to occur on the date mentioned on the check.
As we know, it takes a longer time to convert checks into cash, that’s why people don’t honor this method instead of using credit cards or debit cards. The appearance of important bank details of the account holder is the relevant data that hackers or thieves would love to get.
In some businesses, service fees are demanded in exchange for converting checks into cash like check-cashing businesses. The rates are too high often. It could also result in fraudulent transactions as they can be easily altered.
Therefore, it demands special attention from the account holder and the payee to inspect the check before approaching it.
Many people refuse to accept checks as a mode of payment, while some use them to exchange goods and services rendered. However, it’s a written form of transferring funds between the account holder and the payee.
There are also alternatives to checks like credit cards or debit cards. Due to the use of checks, one doesn’t have to carry a huge chunk of cash.
It also has some risk factors, like one can use it for fraudulent transactions. Therefore, the bearer must take care care of the check so that it doesn’t come into the wrong hands.