Answers about Funds Availability

My employer pays me via direct deposit. When are those funds required to be available?

Banks are required to make funds received for deposit in an account by an electronic payment available for withdrawal not later than the business day after the banking day on which the bank received the electronic payment.

This is required by Automated Clearing House (ACH) rules established by the National Automated Clearinghouse Association (NACHA) – the Electronic Payments Association or a Federal Reserve Bank which provides this service.

This happens when the bank has received both:

  1. Payment in actually and finally collected funds; and
  2. Information on the account and amount to be credited

A bank receives an electronic payment only to the extent that it has received payment in actually and finally collected funds.

July 2017