My mom had a CD mature last week. She went to the bank and was issued a cashier's check for the money. She deposited it in her bank the same day. A few days later, she went online and purchased a CD at another bank with an electronic transfer, figuring the cashier's check should clear in 3-4 days.
Yesterday, she got a letter from the bank saying the funds from the cashier's check that she deposited on 11/17 wouldn't be available until December 1. The letter also said that since she wasn't informed of that, she would not be charged for any overdraft fees. While that is mighty nice of them
, it doesn't eliminate the hassle factor my 79-year-old mother will have from the transfer and any other payments bouncing.
Her bank suggested that she go back to the bank where the check came from and have them write a letter documenting that the check is good. So my mom ended up running back and forth from bank to bank to straighten this out.
How can they justify holding a cashier's check from another local bank for 14 days? I could maybe understand a personal check but not an actual bank check. Surely, they can verify funds quicker than that.