Q: Last Thursday I deposited $50 into my Virtual Wallet account at PNC. The teller said if I want the funds available today, there is a $2 fee. Is this a new procedure with banks?
R.S., Hiram
A: This is not a new procedure at PNC. The service is called “Express Funds,” which PNC started in 2017 as an option for customers, said spokeswoman Shannon Mortland. This allows consumer and small-business customers to get immediate cash availability on qualifying checks deposited to PNC accounts, she said.
“When a customer deposits a check, he or she may be given two options: standard funds availability at no charge or PNC Express Funds for a 2% fee for each check approved for an amount between $25 and $5,000, with a $2 minimum fee,” Mortland said. The service “is completely optional, and if the customer declines, then the funds in the deposit would be available according to PNC’s standard funds availability policy.”
PNC aims to make funds available as quickly as possible, she said. Of course, all banks these days have to protect themselves against counterfeit checks. Sometimes, even banks and law enforcement can’t detect authentic-looking fraudulent checks until they come back that no such account exists.
“Express Funds," Mortland said, “is intended to offer a convenient option when a customer needs or wants more immediate access to checks deposited to PNC accounts — whether they are facing an emergency situation or may want to simply avoid overdraft fees.”
Without Express Funds, funds may be available as soon as the next business day, depending on the kind of check deposited, she said.
PNC isn’t alone with this policy: At Fifth Third, for example, customers with its “express banking” account can deposit checks through the bank’s mobile app with funds available immediately for a 2% fee, said spokeswoman Laura Passerallo. Some other banks have similar same-day-access fees.
By law (Expedited Funds Availability Act of 1987), banks must make $200 of a deposit available the next business day. In many cases, however, a bank will make $100 to $200 available immediately and make the rest available the next day, depending on the customer’s history with the bank. KeyBank, for example, allows immediate access to the first $100 deposited, with no fee, if it’s deposited at a branch or ATM, said spokesman Matthew Pitts. Mobile deposits are available the following morning. Third Federal follows federal funds availability guidelines, said spokeswoman Jennifer Rosa. “At this time, we do not have a fee in place to make funds available immediately to a depositor.”
Besides next-day availability of $200, banks are expected to make an additional $400 available the second business day and the rest on the third day. For checks exceeding $5,000, the amount above $5,000 must be made available no later than the ninth business day following the day of the deposit.
The caveat is that banks can place longer holds on checks if they have reason, such as for new accounts or with checks that look fishy.
For more information on what’s required of banks, go to the Federal Deposit Insurance Corp. website.
Murray is The Plain Dealer’s personal-finance writer. Because of the volume of requests, she cannot help everyone who contacts her. To reach her: moneymatters@plaind.com. On Facebook: MurrayMoneyMatters. On Twitter: @teresamurray. Previous columns online: cleveland.com/moneymatters
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