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.

BREAKING DOWN '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. Holdover Tenant

    A renter who remains in a property after the expiration of the ...
  2. Check Hold

    Denotes a period of time equal to the maximum number of days ...
  3. Bank of First Deposit - BOFD

    The bank where a check is initially deposited to an account. ...
  4. Check

    A written, dated and signed instrument that contains an unconditional ...
  5. Negative Float

    The period of time between when a bank customer writes a check ...
  6. Immediate Credit

    The Federal Reserve practice of "clearing" checks deposited by ...
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. Insights

    Why Are Safe Haven Assets Disappearing?

    The push for safer trading is sharply reducing the supply of safe haven assets, experts say.
  4. Investing

    Understanding the Accounting Cycle

    An accounting cycle consists of the traditional procedures performed to record business events and transactions in a company’s accounting records.
  5. Investing

    What is a Cashier’s Check?

    A cashier’s check is a check written on a financial institution’s funds.
  6. Personal Finance

    What is a Bounced Check?

    Bounced check is a slang term to describe a check that cannot be processed because its writer has insufficient funds.
  7. Small Business

    Best Checking Accounts For Small Businesses

    What you need to know to choose the best checking account for your small business – and where to look.
  8. Personal Finance

    10 Bank Promotions That Pay You To Open An Account

    Find out which banks are running cash promotions this summer.
  9. Personal Finance

    The 8 Best Bank Perks

    Many banks are now offering free perks to entice new customers.
RELATED FAQS
  1. How long does it take a check to clear?

    It usually takes two days for a check to clear, but in some cases it may take longer. Discover how banks treat large deposits ... Read Answer >>
  2. 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 >>
  3. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  4. 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 >>
  5. In what ways has technology helped to reduce float?

    Learn more about the impact of float on the U.S. monetary system and how technology has changed the amount of float as measured ... Read Answer >>
Trading Center