Funds Availability Policy and Disclosure: What It Must Say

10/4/2026

Every bank that offers checking accounts publishes a funds availability policy, and most customers only read it after a hold has already annoyed them. For the bank, the disclosure carries more weight than its length suggests. It is the document that tells examiners what the bank promised, the yardstick every hold is measured against, and the first thing a plaintiff's lawyer will compare to the core system's actual behavior.

This guide is written for the people who draft, maintain and test that disclosure: compliance officers, deposit operations managers and product staff. If you are a customer trying to understand your own bank's policy, the sections on content and on case-by-case holds explain what your bank is required to tell you, but your bank's own disclosure governs your account.

The governing rules are in Regulation CC, 12 CFR 229.15 through 229.18, with model forms in Appendix C and the Board's official commentary in Appendix E. For the underlying availability schedule and exception holds, see our Regulation CC funds availability guide.

Policy Versus Disclosure

Banks tend to use "funds availability policy" for two different documents, and keeping them apart makes both better.

The internal policy is the board-approved or management-approved statement of how the bank will make deposits available: its standard availability, which exceptions it uses, whether it places case-by-case holds, which cutoff hours apply, how it handles mobile and other remote deposits, who may override a hold, and how compliance is monitored. It also has to meet the requirement in section 229.19(f) that the bank establish procedures to ensure compliance and give each employee who performs duties subject to Regulation CC a statement of the procedures that apply to that employee.

The specific availability policy disclosure is the customer-facing document Regulation CC requires. It must describe the policy the bank follows in most cases, and it must be accurate. The disclosure should be drafted from the internal policy, not the other way around, and the two should be reviewed together.

Where and When Disclosure Must Be Given

Regulation CC requires availability disclosure in several places. Some apply to all accounts, some only to consumer accounts.

Requirement	Section	Applies to	What is required
Initial disclosure	229.17	All accounts	Specific availability policy disclosure before opening the account
Upon request	229.18(d)	Any person who asks	Specific availability policy disclosure, orally or in writing requested
Deposit slips	229.18(a)	Preprinted slips furnished to customers	Notice that deposits may not be available for immediate withdrawal
Teller locations	229.18(b)	Locations where employees accept consumer deposits	Posted notice of availability periods for consumer accounts
ATMs	229.18(c)	Each ATM where deposits are accepted	Notice that deposits may not be available immediately; delayed-pickup ATMs must also disclose when deposits are considered received
Changes in policy	229.18(e)	Consumer accounts	Notice at least 30 days before a change; faster availability may be disclosed within 30 days after

 

Initial disclosure timing

The commentary reads "before opening a new account" to mean before accepting a deposit to open the account, whether or not the bank has finished setting up the account. Two exceptions help remote openings: if a written request to open an account arrives by mail with an initial deposit, the bank may open the account and mail the disclosure no later than the business day after the banking day it received the deposit, and a similar rule applies to telephone requests funded by transfer from another account at the bank. For digital channels, build the disclosure into the opening flow before the funding step.

Posted notices

The lobby notice need not be at every teller window, but it must be where consumers will see it before they make a deposit, such as where the teller line forms. It is not required at drive-through windows or night depositories. The ATM notice must appear before the customer makes the deposit, on a sign, the screen, or the deposit envelope; a notice on the receipt does not count.

Changes in policy

The 30-day advance notice for consumer accounts applies to any change in the availability policy. If the change speeds availability, notice may follow within 30 days after the change. When the bank sends a complete new disclosure, it must point the customer to what changed through a letter, insert, or highlighting.

Form Requirements

Section 229.15 governs how the disclosure looks.

Clear, conspicuous, written, and in a form the customer may keep. Posted notices and deposit slip notices are exempt from the keepable requirement. The commentary says a disclosure the customer can download or print is keepable.

Grouped together, with nothing unrelated. The availability disclosures must be grouped together and may not include information unrelated to availability. They can sit inside a larger terms-and-conditions booklet, but they must be set apart, for example under a separate heading such as "When Deposits Are Available for Withdrawal." The bank may include related information, such as a statement that the customer remains responsible for a deposited check that is later returned.

Uniform reference to the day of availability. The disclosure must describe availability as "the ___ business day after" the day of deposit. The count starts with the business day after the banking day of deposit and ends on the day funds become available. A policy that holds local checks two business days says "the second business day after the day of deposit," not "two days" or "within 48 hours."

Electronic delivery. The commentary allows electronic disclosure to a nonconsumer customer who agrees to it. For a consumer, the bank must comply with the E-Sign Act, including obtaining the consumer's affirmative consent.

Other languages. A bank may provide the disclosures in another language by agreement or at the consumer's request, as long as a complete English disclosure is available on request.

Practical exemptions. One disclosure covers a customer with several accounts on the same policy, and one disclosure to one owner covers a joint account. Disclosures need not be sent to accounts the bank treats as dormant or inactive.

What the Disclosure Must Contain

Section 229.16(b) lists the content, "as applicable." A bank that gives next-day availability on everything needs very little; a bank that uses every hold the rule allows needs a lot.

1. A summary of the policy

Because availability policies can be complex, the disclosure must open with a brief summary. Model forms C-1 through C-5 in Appendix C show summaries for different policy types, from next-day availability on everything to holds to statutory limits on all deposits.

2. Deposit categories and when each is available

If the bank delays any category, the disclosure must describe the categories it uses, how a customer can tell which category a deposit falls into, and when each will be available. This section must also describe the bank's business days and when a deposit is considered received.

Cutoff hours belong here. Under section 229.19(a)(5), a bank may treat deposits as received on the next banking day if they arrive after a cutoff of 2:00 p.m. or later at a staffed office, or 12:00 noon or later at ATMs, contractual branches and off-premises facilities. The commentary requires the disclosure to state the cutoff, and if locations differ, to say so and give the earliest time that might apply. A bank whose cutoff is its closing time need not disclose one.

A bank that gives faster availability than the rule requires for most deposits but delays one or two categories, such as nonproprietary ATM deposits, describes the delayed categories and states that other deposits are available on the first business day.

3. The exceptions the bank may invoke

The disclosure must describe each section 229.13 exception the bank may use, when funds will generally be available if it does, and a statement that the bank will notify the customer when it invokes one. A bank that never uses the redeposited-check exception should not list it; a bank that uses the new-account exception must describe how deposits to new accounts are handled.

4. Case-by-case holds

If the bank generally makes funds available sooner than the rule requires but sometimes delays a deposit up to the regulatory limit, it must say so. Section 229.16(c)(1) requires three statements:

• That availability may be extended in some cases, and the latest time following a deposit that funds will be available
• That the bank will notify the customer if funds will not be available until later than the stated policy
• That customers should ask if they need to be sure when a particular deposit will be available

5. Proprietary versus nonproprietary ATMs

If the bank holds nonproprietary ATM deposits longer, the disclosure must explain how to tell the difference. The commentary allows either a list of ATMs or a statement that all proprietary ATMs carry the bank's name.

Other items the commentary requires when they apply

• Use of the cash withdrawal adjustment in 229.12(d), which lets the bank delay cash withdrawal of check funds by one business day while releasing $550 by 5:00 p.m. on the availability day.
• Use of holds on other funds under 229.19(e), when a check is cashed or a deposit is held against funds in another account. Model clauses C-6 and C-7 cover these.
• For credit unions that delay interest accrual, a description of when interest or dividends begin to accrue.

The Case-by-Case Hold Notice

A disclosure that reserves case-by-case holds triggers a notice each time the bank uses one. Section 229.16(c)(2) requires a written notice stating:

• A number or code, not more than four digits, identifying the account
• The date of the deposit
• The amount of the deposit being delayed
• The day the funds will be available

The notice goes to the person making an in-person deposit at the time of deposit. If the deposit was not made in person, or the decision to delay was made later, the bank must mail or deliver it no later than the first business day after the banking day of deposit. Model notice C-16 is the starting point.

Case-by-case holds are not exception holds. A case-by-case hold stays within the ordinary schedule, for example holding a local check to the second business day when the bank normally gives next-day. It needs no exception reason. If the bank wants to hold beyond the ordinary schedule, it must invoke a section 229.13 exception and give that exception's notice instead.

Fees. If the bank does not give written notice at the time of deposit and the deposited check is paid, it may not charge overdraft or returned-check fees that resulted from the case-by-case delay, unless its notice tells the customer that such fees may be refunded and how to request a refund, and it refunds them on request.

Drafting From the Model Forms

Appendix C gives a bank five model policy disclosures (C-1 to C-5), model clauses for special situations (C-6 to C-11A), model hold notices (C-12 to C-16), and model posted and deposit-slip notices (C-17 to C-21). Using them is the fastest route to a compliant document, but three cautions apply.

Pick the model that matches the practice. The disclosure must reflect the policy the bank follows in most cases. A bank that gives next-day availability on most checks but uses the C-4 "holds to statutory limits on all deposits" text is over-disclosing in a way that may later be read as its actual practice.

Update every dollar figure. The model text in the regulation still prints older amounts in places, such as $5,000 for the new-account and large-deposit amounts and $100 for the next-day minimum. Current amounts, effective July 1, 2025, are $275 for the next-day minimum, $550 for the cash withdrawal amount, and $6,725 for the new-account, large-deposit and repeated-overdraft thresholds. They are adjusted again on July 1, 2030.

Account for channels the models never anticipated. The model forms predate mobile deposit. If the bank offers it, decide how availability for mobile deposits will be described, and where. The relationship between remote deposit capture and the Regulation CC schedule is not addressed directly in the regulation, which is a strong reason to state the bank's policy clearly in the account or service agreement.

Different Policies for Different Customers

The commentary allows more flexibility than many banks use:

• A bank may give some customers faster availability than its disclosure states without telling them.
• A bank that imposes longer delays on some customers than its general disclosure shows must give those customers a disclosure reflecting the longer periods.
• A bank may set different policies for different groups, such as customers of a particular branch or geographic area, allocated in good faith using a reasonable method, and different policies for deposits at different locations, such as a contractual branch.

Any such segmentation should be documented and reviewed for fair treatment. Availability is a place where unintended disparities between branches or customer groups can appear, and they are better found internally than in an examination; the fair lending laws overview explains why similar patterns attract attention in credit.

A Drafting and Review Checklist

1. Start from the internal policy and the actual core-system configuration, not from last year's disclosure.
2. Choose the Appendix C model closest to actual practice.
3. Replace every dollar amount with the current figure and record the next adjustment date.
4. State business days, cutoff hours, and when deposits are considered received, including ATM and night-depository rules.
5. List only the exceptions the bank actually uses, with the general availability if invoked.
6. Add the three case-by-case statements if the bank uses case-by-case holds.
7. Address mobile and remote deposits, ATMs the bank does not own, cash withdrawal limits, and holds on other funds if any apply.
8. Group the disclosure under its own heading and remove anything unrelated.
9. Confirm the "___ business day after" phrasing throughout.
10. Update lobby, ATM, and deposit slip notices to match, and schedule the 30-day change notice for consumer accounts.
11. Retain evidence of compliance for at least two years, as section 229.21(g) requires.

The availability disclosure is usually delivered in the same account-opening package as the bank's Truth in Savings disclosures, and the two are often reviewed by the same people. Our post on Regulation DD and Truth in Savings covers the other half of that package, and putting both on a single annual review calendar is efficient. Staff who own the whole package are the audience for the Certificate in Deposit Compliance.

Frequently Asked Questions

What is a funds availability policy?

A funds availability policy is a bank's statement of when deposited funds become available for withdrawal. Regulation CC requires every bank to give a specific availability policy disclosure before opening an account and upon request, describing the policy it follows in most cases, the deposit categories it uses, when deposits are considered received, any exceptions it may invoke, and any case-by-case holds. Banks also maintain an internal policy and procedures that staff follow, which the disclosure should match.

When must a bank give its funds availability disclosure?

Before opening an account, which the commentary reads as before accepting the opening deposit, with limited mail and telephone exceptions that allow mailing it by the next business day. A bank must also provide it to any person who asks, orally or in writing. Separately, banks must post availability notices where employees accept consumer deposits and at ATMs, print a short notice on preprinted deposit slips, and notify consumer account holders at least 30 days before a policy change that slows availability.

What must a funds availability disclosure include?

Under 12 CFR 229.16(b), as applicable: a summary of the policy; the categories of deposits the bank uses when it delays availability, how to tell which category applies, and when each is available; the bank's business days and when a deposit is considered received; the exceptions the bank may invoke and a statement that it will notify the customer; any case-by-case hold policy with the latest availability time; and how to distinguish proprietary from nonproprietary ATMs if they are treated differently.

What is a case-by-case hold?

A case-by-case hold is a delay a bank occasionally places on a particular deposit when its normal policy is to make funds available faster than Regulation CC requires. The hold may run up to the regulatory schedule without an exception reason. The disclosure must reserve the right, state the latest availability, promise notice, and tell customers to ask about specific deposits. Each hold needs a written notice with the account code, deposit date, amount delayed, and availability day. Going beyond the schedule requires a section 229.13 exception.

Can a bank change its funds availability policy?

Yes. For consumer accounts, the bank must send notice at least 30 days before implementing a change. If the change makes funds available faster, the bank may send the notice within 30 days after implementing it. The notice must be clear and conspicuous; if the bank sends a full new disclosure, it must direct the customer to what changed. Posted lobby and ATM notices and any related account agreement language should be updated at the same time.

Can a funds availability disclosure be delivered electronically?

Yes, with conditions. The commentary allows electronic delivery to a nonconsumer customer who agrees to receive disclosures that way, in a form the customer can keep, such as one that can be downloaded or printed. For consumers, the bank must comply with the E-Sign Act, which includes obtaining the consumer's affirmative consent before relying on electronic delivery. Posted notices at teller locations and ATMs are separate requirements and cannot be replaced by an online disclosure.

Build the Expertise Behind the Disclosure

The disclosure is where Regulation CC meets the rest of deposit compliance: account opening, Truth in Savings, electronic delivery and fair treatment. For staff who own those documents, the Certificate in Deposit Compliance is our deposit compliance certificate program. Teams that need depth on this one regulation can add the Expedited Funds Availability (Reg CC) course, and the full deposit compliance training catalog covers the related rules.