DEFINITION of 'Deferred Availability'

A delay in the availability of funds to the holder of a commercial bank account upon depositing a check as his/her bank awaits payment from the paying bank. Regulations require banks to limit the hold to no more than two days for local checks and no more than five days for out of town checks. There is an exception for new accounts where regulations allow banks to delay the availability of funds for up to 30 days.

BREAKING DOWN 'Deferred Availability'

Regulations allowing a delay in the availability of funds were created to deter fraud and embezzlement schemes that involve cashing bad checks before they are cleared.

RELATED TERMS
  1. Available Balance

    Balances in checking or on-demand accounts where there is a delay ...
  2. Immediate Credit

    The Federal Reserve practice of "clearing" checks deposited by ...
  3. Check Hold

    Denotes a period of time equal to the maximum number of days ...
  4. Delayed Disbursement

    A cash management technique that involves a company paying vendors ...
  5. Availability Schedule

    The number of days it takes for a third-party check deposited ...
  6. Availability

    Funds that have been deposited by third-party check into a customer's ...
Related Articles
  1. Personal Finance

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  2. Personal Finance

    Top 5 Reasons Banks Won't Cash Your Check

    Learn the top reasons that a bank won't cash your check, and find out what steps you can take to prevent those scenarios from happening.
  3. Personal Finance

    10 Bank Promotions That Pay You To Open An Account

    Find out which banks are running cash promotions this summer.
  4. Investing

    A Guide to Bank Accounts

    Find out which type of bank account suits your specific needs.
  5. Insights

    The Role of Commercial Banks in the Economy

    We interact with commercial banks daily to carry out simple financial tasks. That said, the function and creation of a commercial bank is anything but simple.
  6. Tech

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.
  7. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  8. Personal Finance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
RELATED FAQS
  1. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  2. What are the differences between preference shares and bonds?

    Learn what information banks keep on file for their customers, and understand how this information can be used to deny an ... Read Answer >>
  3. When do checks expire?

    There is a legal grace period for cashing checks, but depositors and issuers may risk overdraft fees if a late check is presented ... Read Answer >>
  4. How do commercial banks make money?

    Learn the different ways commercial banks make money, including interest from loan products and banking fees charged to customers. Read Answer >>
Trading Center