[maui_hawaii]

Because Check 21 isn't legally in place yet.

In the old way, say you live in Florida and got a check out of California...

By Law the bank could place a hold for 5 days in an effort to hold down fraud. Often time collecting those funds from bank to bank would take the whole 5 days.

Under Check 21 you should get those funds credited and collected in 2 days.

There is still a collection time, but its just shorter, a lot shorter.

Over the next several months your out of state checks will clear a lot faster and instead of 5 days holds, you might see only 2 day holds in its place.

Check 21 is speeding up the system...

[dirtboy]

By Law the bank could place a hold for 5 days in an effort to hold down fraud. Often time collecting those funds from bank to bank would take the whole 5 days

I disagree. It shouldn't have taken more than two days. The other three days, the bank gets to play with my money interest-free.

Likewise, Check21 might get me the money in 2-3 days. But the bank will get it within a day. So they still get to sit on my money.