This policy will cover deposits that are made at the Credit Union to transaction accounts; however, certain exceptions may apply. You will be informed of these exceptions at the time the deposit is made.
The Credit Union’s general policy is to make funds available from the deposit made by you on the next business day (except for Automatic Teller Machine (ATM) deposits) on “local checks” and on the fifth (5th) business day for “non-local” checks. Electronic direct deposits and wire transfers will be available on the day the Credit Union receives the funds. Once they are available, you can withdraw the funds in cash and the Credit Union will use the funds to pay checks that you have written.
Determining the Availability of a Deposit
Local and Non-Local Checks: Checks are considered “local” or “non-local” based on whether the deposited check is drawn on a financial institution located in the same Federal Reserve Bank check processing region as Northern Kentucky Educators’ Federal Credit Union.
A “local check” is a check payable by or payable at a local paying institution, or a check payable by a non-institution payer and payable through a local paying institution.
A “non-local” check is a check payable by, through or deposited at a financial institution located in a different Federal Reserve district as Northern Kentucky Educators’ Federal Credit Union.
For determining the availability of your deposits, every day is a business day, except for Saturdays, Sundays, and Federal Holidays. If you make a deposit before 5:00 p.m. on a business day that the Credit Union is open, that day will be considered the day of deposit except for Saturdays. However, if you make a deposit after the above mentioned time or on a day the Credit Union is not open, we will consider that the deposit was made on the next business day the Credit Union is open. If you mail funds to us, the funds are considered deposited on the business day we receive them. Funds deposited in the night depository or mail slot at the Credit Union after 8:00 a.m. are considered deposited on the next business day the Credit Union is open. Funds deposited at ATMs will be available to the member when the funds become available to the Credit Union.
Reservation of Right to Hold
In some cases, we will not make all of the funds that you deposit by check available in accordance with the above statement for “local” and “non-local” checks. Depending on the type of check that you deposit, the funds may be placed on hold for up to five (5) days longer than stated above. However, the first $100 of your deposit will be available on the first (1st) business day after the day of your deposit.
If we are not going to make all of the funds from your deposit available as stated above, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the first (1st) business day after we receive your deposit. You should ask if you need to be sure about when a particular deposit will be available for your withdrawal.
Longer Delays That May Apply
In addition, funds you deposit by check may be delayed for a longer period under the following circumstances.
We believe a check you deposit will not be paid.
You deposit checks totaling more that $5,000 on any one day. (Note: the first $100 will be available on the (1st) business day after the day of your deposit.)
You deposit a check that has been returned unpaid.
You have overdrawn your account repeatedly in the last six months.
There is an emergency, such as failure of communications or computer equipment.
Reasonable doubt to collect, if necessary.
We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the tenth (10th) business day after the day of your deposit.
The Credit Union reserves the right to refuse an item for deposit or encashment.
An account is considered new the first (30) thirty calendar days after you have established the account. For new accounts, the following special rules will apply during the first 30 calendar days your account is open:
Funds from electronic deposits to accounts will be available on the settlement date of the deposit.
Funds from deposits of cash, wire transfers, and the first $5,000 of a day’s total deposit of cashier’s, certified, teller checks, and federal, state, and local government checks will be available on the next business day after the day of the deposit, if the deposit meets certain conditions. For example, the checks must be payable to you. The excess over $5,000 will not be available until the second (2nd) business day after the day of the deposit.
Funds from all other deposits will be available on the (10th) business day of deposit.
Holds on Other Funds
If we accept for deposit or we cash a check that is drawn on another financial institution, we may make funds from that deposit available for withdrawal immediately, but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account(s) would then not be available for withdrawal in accordance with the time periods that are described in this policy. After the funds are made available to you and have been withdrawn, you are still responsible for the checks that are deposited that may be returned unpaid and for any other problem involving your deposit.
Northern Kentucky Educators’ Federal Credit Union reserves the right to delay the availability of funds deposited to accounts that are non-transaction accounts (i.e. Share Savings Accounts and Term Share Certificate Accounts) or checks drawn on financial institutions located outside the US (foreign checks) for periods longer than those disclosed in this policy. If a hold is necessary for check deposits to these types of accounts, or for foreign checks, the hold may be placed until funds are collected.