5/3rd $500 New Checking Acct Signup

[Anonymous]

I’m always lured in by cash rewards for opening an account. I have come to expect to be treated a certain way regardless of the age of my account. Of course, I know some variance will occur during the first 30 days and then the first year at small banks.

I funded the opening of my account with 5/3rd by depositing a check via the mobile app. Red flag? Not if you do business in 2019. The check cleared my account the next day. The deposit was made on 7/24 and today is 8/5 and it’s still on hold. It cracks me up. I’m not looking to spend the money. I parked it in that account until the time comes that they decide to charge fees. Then I’ll need to re-evaluate my relationship. I have 2 credit cards with 5/3rd, but that doesn’t matter

I normally fund by ACH, but 5/3rd limits that to loan and cc payments only.

So what’s my point?

If you plan to open an account at 5/3rd be aware that they hold everything beyond what I would consider reasonable given the speed in which transactions occur these days. If you do, just make sure you don’t need the money anytime soon. They seem to have forgotten exactly whose money it is.

To all you nay-sayers, a 12 calendar day (so far), 8 business day hold is ridiculous. And this is not because I have a risky profile - to the contrary. This is SOP for 5/3rd.

[gdale6]

The law limits the amount of time a bank can hold a deposit.

https://www.thebalance.com/funds-availability-315448

[Anonymous]

Have you contacted your main bank?
The bank you are moving the money from could possibly be putting the hold on the check you wrote.

They might see that your new 5/3 account is brand spanking new and immediately a fair sized check was written and being deposited via mobile app.
You may have triggered some fraud protection at your main bank, causing the hold up. Might be a good idea to call in and/or visit a local branch with your ID in hand.

Just because the money is out of your main bank account, doesn't mean it has been transferred. Your money could be in limbo currently.

[Anonymous]

I’m not arguing the bank’s right to hold a check. Or that they were within rights to hold for 9 business days (they finally released it). They can do it. I’m just saying it’s a really bad way to start a relationship. I have no intention of spending the money. It’s going to sit there. So I don’t care about the hold. I’m posting here because, as usual, buyer beware.

If you open an account at 5/3rd and you want to deposit a check - even a payroll check they will hold it for 9 business days. So think twice.

[CreditCuriosity]

Suntrust did a similiar thing was a fairly new account desposited the check and it cleared them in a day..  Cool right?  But I went to transfer 10k of that out to another FI and that is when they put a 10+ day freeze on it to protect "me" they stated..  No it isn't to protect me it was obviously to protect them.. Needless to say that account has long since been closed.. I cancelled the transfer and pulled the cash out at the branch and closed the account right there.  Not the same thing, but similiar.  Some banks can be a big PITA and those ones I avoid.

[OmarR]

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@Anonymous wrote:
If you plan to open an account at 5/3rd be aware that they hold everything beyond what I would consider reasonable given the speed in which transactions occur these days. If you do, just make sure you don’t need the money anytime soon. They seem to have forgotten exactly whose money it is.

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If this is going to be your main account, yeah, everything that you posted sucks. If those restrictions are not lifted after an account is seasoned, than I would move on.

As for me, I am just churning them for the $500. I park the minimum requirements right away (usually along with DD), wait the minimum amount of time, and dump them. Next!

[Anonymous]

@CreditCuriosityseems to me that some of the banks have been more careful on "money laundering". Actually there is something in the IRS Code about $10,000 transfers and governmental notification. Also, have run into $5,000 limits on transfers which I thought were 'free willy' but got stopped. So ... you may have tripped a magical governmental policy? In truth it gets confusing.

[CreditCuriosity]

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@Anonymous wrote:

@CreditCuriosityseems to me that some of the banks have been more careful on "money laundering". Actually there is something in the IRS Code about $10,000 transfers and governmental notification. Also, have run into $5,000 limits on transfers which I thought were 'free willy' but got stopped. So ... you may have tripped a magical governmental policy? In truth it gets confusing.

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I know 10k deposits they have to report it to the IRS for such things as you mentioned, but shouldn't of put a hold on the transfer out..Unless there is a rule I don't know of.  Basically they said they didn't know me, but why would of you of cleared it on their side, but in-turn didnt want a big portion transferred out.  It would be on the other FI's to report a 10k deposit is how i see it, but what do i know.. Regardless I don't miss them at all as they made me come into a branch a few times to identify me vs. over the phone which is a real pain as time is money and I hate wasting my time with silly processes or what at least I consider silly.

[KLEXH25]

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@Anonymous wrote:
I’m always lured in by cash rewards for opening an account. I have come to expect to be treated a certain way regardless of the age of my account. Of course, I know some variance will occur during the first 30 days and then the first year at small banks.

I funded the opening of my account with 5/3rd by depositing a check via the mobile app. Red flag? Not if you do business in 2019. The check cleared my account the next day. The deposit was made on 7/24 and today is 8/5 and it’s still on hold. It cracks me up. I’m not looking to spend the money. I parked it in that account until the time comes that they decide to charge fees. Then I’ll need to re-evaluate my relationship. I have 2 credit cards with 5/3rd, but that doesn’t matter

I normally fund by ACH, but 5/3rd limits that to loan and cc payments only.

So what’s my point?

If you plan to open an account at 5/3rd be aware that they hold everything beyond what I would consider reasonable given the speed in which transactions occur these days. If you do, just make sure you don’t need the money anytime soon. They seem to have forgotten exactly whose money it is.

To all you nay-sayers, a 12 calendar day (so far), 8 business day hold is ridiculous. And this is not because I have a risky profile - to the contrary. This is SOP for 5/3rd.

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To contrast, I just emptied out my Wells Fargo account by writing myself a check and doing a mobile deposit into my Capital One account. I did this at 7:30 last night. An hour later, I was notified the check cleared, and the money was out of my WF and in my CO by 2am. Now THAT is fast lol.

[Anonymous]

@CreditCuriosity glad you put this data point out there as at least we know about some of these at a minimum irritating requirements! A little different but on a similar path, US Bank has never allowed me to obtain a product on line? Not a problem with anybody else and I have had to go into a Branch and obtain it (use the influence of the personal banker then). In truth, the Branch gets it done in a very few minutes with NO problems so what is the story???