Holdovers

AAA

DEFINITION of 'Holdovers'

Checks that are in transit that are delayed during the collection process until the next cycle. In most cases, this is the following business day. Holdover checks are then bundled into cash letters and presented to either a clearinghouse or the paying bank for deposit.

INVESTOPEDIA EXPLAINS 'Holdovers'

Holdovers are typically found in large clearinghouse banks. This type of hold is different from a hold that a bank puts on out of state or third party checks. In this case, the check is usually held over simply because it was received too late in the day for same-day processing.

RELATED TERMS
  1. Leasehold

    An accounting term used to classify an asset on a company's balance ...
  2. Check

    A written, dated and signed instrument that contains an unconditional ...
  3. Banking Department

    A state-specific regulatory body that oversees the operations ...
  4. Certified Check

    A type of check where the issuing bank guarantees the recipient ...
  5. Rubber Check

    Another name for a "bounced check." A rubber check is a slang ...
  6. Bad Check

    A check drawn on a nonexistent account or on an account with ...
RELATED FAQS
  1. What is the difference between investment banks and merchant banks?

    Merchant banks and investment banks, in their purest forms, are different kinds of financial institutions that perform different ... Read Full Answer >>
  2. What months of the year typically have the highest float?

    Float creates a temporary distortion in a nation's money supply by counting the same funds twice. This occurs when checks ... Read Full Answer >>
  3. In what ways has technology helped to reduce float?

    Technological advances have reduced float by enabling faster processing of checks. Funds now spend less time waiting for ... Read Full Answer >>
  4. Why does float usually increase at the beginning of the week?

    Float is created by check-processing backlogs in the financial system. Checks await processing from one checking account ... Read Full Answer >>
  5. How does your checking account affect your credit score?

    Your credit report provides a snapshot for prospective lenders, landlords and employers of how you handle credit. For any ... Read Full Answer >>
  6. What should you bring to a bank to open a checking account?

    Opening a checking account is a fairly simple process. You choose a bank, show up, fill out some paperwork, provide some ... Read Full Answer >>
Related Articles
  1. Savings

    Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  2. Retirement

    10 Bank-Breaking Money Myths

    Just because a belief is common, doesn't mean that it's true. Here we separate fact from fiction.
  3. Personal Finance

    What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.
  4. Retirement

    Getting A Loan Without Your Parents

    Use the 5 "W"s to finance your dreams without banking on a second signature.
  5. Credit & Loans

    The Pros & Cons Of Personal Loans vs. Credit Cards

    One is not like the other. We help you decide where to borrow money from.
  6. Budgeting

    Should You Pay Your Bills On Autopilot?

    Now that you can sign up to have your bills paid automatically online, it it a smart way to make your life more efficient? A look at the pros and cons.
  7. Entrepreneurship

    Technology, The Biggest Threat For Big Banks

    Technology is the biggest threat to the future of big banks as we know them.
  8. Personal Finance

    4 Tips To Cut Your Monthly Bank Fees

    We asked banking professions to share their biggest tips for tackling bank fees, and hopefully save more even before spring hits.
  9. Savings

    2015's Top Checking Account Promotions

    Open a checking account in 2015 and the bank could give you a cash bonus. Check out these top offers.
  10. Savings

    Best Checking Accounts For Couples

    Being a couple, especially if you both have jobs, can help you qualify for benefits and fee waivers that would be tougher to get on just one salary.

You May Also Like

Hot Definitions
  1. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  2. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  3. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  4. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  5. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  6. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
Trading Center