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The third damned lie: your funds will be available in two days

My grandfather used to say there were two damned lies.  The first was told to children: “This hurts me more than it does you.” The second was, “The check is in the mail.”

To this I add a third lie: “Your funds will be available in two days after deposit.”

It recently came to my attention that many banks are making funds available on the second day alright, but not until just before midnight.  Which, to my way of thinking, is not two day availability.  It is THREE day availability.

Apparently this has been going on for a long time (who knew?).  Nevertheless, if your bank is engaging in this kind of sophistry, I’d suggest you stop.  If you must hang on to the money for 48 hours plus, then be upfront and clearly explain to customers how your funds availability policy actually works.

Some banks are going to get hit with a UDAAP violation over this. And, by golly, they’ll deserve it.