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Path: utzoo!linus!decvax!cca!ima!johnl
From: johnl@ima.UUCP
Newsgroups: net.flame
Subject: Re: Re: banks flames - (nf)
Message-ID: <375@ima.UUCP>
Date: Mon, 15-Aug-83 18:35:38 EDT
Article-I.D.: ima.375
Posted: Mon Aug 15 18:35:38 1983
Date-Received: Tue, 16-Aug-83 04:25:53 EDT
Lines: 18

#R:mit-eddi:-57700:ima:14600009:000:776
ima!johnl    Aug 15 18:19:00 1983

Come, now.  There are two reasons that your bank holds on to your check
for two weeks before you can have your money.  The first is so that they
have their money in the unlikely event that a) the check bounces and b)
the bounced check is returned glued to a snail instead of in a day or so
as actually happens.

The real reason is so they can hold on to your bucks interest free (or at
5% which is almost the same thing these days.)  It seems to be a regional
thing; it's very common in New York to have checks held for a week, but
in Boston banks usually let you have your money the next day, which is
reasonable.  There is some sentiment at the Federal Reserve and in
Congress that long holding periods are an abuse and they may pass rules
about it.

John Levine, ima!johnl