We definitely understand how frustrating check holds can be, and we want to provide you with some information as to when and why you might get a hold on your check.
When you make a deposit, the funds are not credited to Novo right away as they must go through one of the U.S. Federal Reserve central clearinghouses. While some transactions are processed instantly, there are many that may require a temporary hold while the funds clear.
These holds are in place to protect you and your account in the event that the check does not clear. If you have spent the funds from a check that does not clear, this could cause your account to go into overdraft and to have other payments bounce as a result. On larger checks, it may be difficult to come up with the funds so we place holds to ensure that the funds clear before you can spend them.
You can always review the estimated availability of your deposit when typing out the amount of your check before depositing. At this time, holds on your check cannot be released once they have been placed. We understand that this does not fit every business, but these holds will change as we build a history and understanding of your banking needs.
One way to avoid account holds on your funds is to request payments as an ACH. Many businesses now accept and offer ACH payments to their clients and contractors and ACHs are free with your Novo account.