How Long Does Ally Bank Take to Clear a Check? Your Comprehensive Guide
Have you ever deposited a check with Ally Bank, then found yourself wondering, "When will my money actually be available?" You're not alone! The process of a check clearing can sometimes feel a bit mysterious, especially with an online-only bank like Ally. But don't worry, we're here to demystify it for you.
This comprehensive guide will walk you through everything you need to know about Ally Bank's check clearing times, step-by-step, to help you manage your finances with confidence.
Step 1: Let's Get Started! Understanding the Basics of Check Clearing
Before diving into Ally-specific details, let's understand the fundamental concept of "check clearing." When you deposit a check, your bank doesn't instantly have the funds. The check needs to go through a process involving both your bank (Ally, in this case) and the bank the check was drawn on. This process verifies the check's legitimacy and ensures sufficient funds are available in the issuer's account.
Why the "Hold"? Banks place a "hold" on deposited checks primarily to protect themselves and their customers from fraud and insufficient funds. If a check bounces after you've already spent the money, it can lead to fees for both you and the bank.
Step 2: The Ally Bank Check Deposit Methods
Ally Bank, being a digital-first bank, offers convenient ways to deposit checks without needing a physical branch.
2.1: Ally eCheck Deposit℠ (Mobile App or Online)
This is by far the most popular and convenient method for depositing checks with Ally. You can use your smartphone to take a picture of the check or scan it if you're on a computer.
Mobile App: Simply log into your Ally Mobile App, go to your account, and select "Deposit Checks" (or similar phrasing). Follow the on-screen prompts to photograph the front and back of your endorsed check.
Online (Computer): If using a computer, you'll need access to a scanner to upload images of your endorsed check. Log into your Ally online banking, navigate to "Deposits," then "Check Deposits."
2.2: Mail Deposits
While less common for Ally users due to the convenience of eCheck Deposit, you can also mail a check to Ally Bank. This method will inherently take longer due to transit time.
Step 3: Ally Bank's Standard Check Clearing Times
Now, for the core of your question! How long does it typically take for Ally Bank to clear a check?
3.1: General Availability for eCheck Deposits
For most standard checks deposited via Ally eCheck Deposit℠:
Deposits made before 7:00 PM ET on a business day: Ally will begin processing your deposit that evening. Generally, the funds will be available by the next business day.
Deposits made after 7:00 PM ET on a business day, or on a weekend/federal holiday: Processing will begin on the next business day. This means the funds will typically be available on the second business day after your deposit.
Example: If you deposit a check via eCheck at 6:00 PM ET on a Tuesday, your funds should be available on Wednesday. If you deposit it at 8:00 PM ET on a Tuesday, your funds should be available on Thursday.
3.2: Initial Availability - The First Portion of Your Deposit
Ally Bank, like many financial institutions, generally makes a portion of your deposit available sooner.
The first $225 of a check deposit is typically available by the next business day. This rule applies even if the full amount of the check is subject to a longer hold.
Step 4: Factors That Can Cause Longer Holds
While the general timeframe is 1-2 business days, several factors can lead to Ally Bank placing a longer hold on your check deposit. It's crucial to be aware of these:
4.1: Large Deposit Amounts
If you deposit a check for more than $25,000, Ally Bank may hold the entire amount for a longer period, typically up to 5 business days. For deposits over this amount, funds are often released in tiers, with the remaining balance becoming available later.
Some sources indicate that for checks between $5,525 and $25,000, funds may be available on the 2nd business day, with amounts exceeding $25,000 available on the 5th business day. It's best to confirm with Ally's official policy for large deposits.
4.2: New Accounts
If your Ally Bank account is new (generally within the first 30 days of opening), longer holds may apply to all check deposits. This is a standard practice across the banking industry to mitigate risk.
4.3: Redeposited Checks
If you're depositing a check that was previously returned unpaid, Ally Bank will likely place a longer hold on it. This is a red flag for banks and requires additional verification.
4.4: Suspected Fraud or Uncollectible Funds
If Ally Bank has reasonable cause to believe that the check will not be paid (e.g., suspicious activity, forged signature, closed account), they can place an extended hold. They are legally required to notify you if this happens and explain why.
4.5: Repeatedly Overdrawn Accounts
If your account has been repeatedly overdrawn in the past six months, Ally Bank may extend the hold period on your deposits.
4.6: International Checks
Checks drawn on international banks can take significantly longer to clear, often weeks, as they involve international banking systems and currency conversions. Ally Bank generally states they only accept checks drawn on U.S. banks in U.S. dollars.
4.7: Federal Holidays and Weekends
Remember that business days exclude Saturdays, Sundays, and federal holidays. If you deposit a check on a Friday evening, it won't start processing until the next business day (usually Monday), potentially pushing back availability.
Step 5: Checking the Status of Your Deposit
Ally Bank provides ways to track your deposit status, so you're not left in the dark.
Email Notifications: Ally will usually send you an email within 1 business day with your deposit status and information on when the funds will be available.
Online Banking/Mobile App:
Log in to your Ally account.
Navigate to your account's "Activity" or "Transaction History."
You should see "Deposits In Process" or similar, indicating checks that are still clearing. You can also view your deposit history for the past 120 days.
Step 6: What to Do if You Need Funds Sooner
While Ally's clearing times are generally efficient for a digital bank, there might be times you need access to your funds more quickly.
Consider Other Deposit Methods: For immediate availability, electronic direct deposits and wire transfers are your best bet as they are generally available on the settlement date.
Plan Ahead: If you know you'll need access to funds from a check by a certain date, deposit it with plenty of time to spare, accounting for potential holds.
Contact Ally Customer Service: If you have a critical need for funds or believe there's an error with your deposit hold, you can contact Ally Bank's customer service 24/7 at 1-877-247-2559. They can provide specific details about your deposit and any holds applied.
Frequently Asked Questions (FAQs) - How to...
Here are 10 common "How to" questions related to Ally Bank check clearing:
How to check my Ally Bank deposit status? You can check your deposit status by logging into your Ally Bank online account or mobile app. Navigate to your account's "Activity" or "Transaction History," where you'll see "Deposits In Process" or completed deposit entries. Ally also typically sends email notifications regarding your deposit status.
How to avoid long holds on Ally Bank checks? To minimize holds, ensure the check is properly endorsed, made payable to you, dated within 180 days, and drawn on a U.S. bank in U.S. dollars. Keep your account in good standing (avoiding repeated overdrafts), and if possible, use direct deposit for recurring payments.
How to endorse a check for Ally eCheck Deposit℠? When endorsing a check for Ally eCheck Deposit℠, you should write "For Mobile Deposit Only" and the signatures of all payees on the back of the check. It's also recommended to write your Ally account number below your signature.
How to get funds faster from Ally Bank? For faster access to funds, consider using direct deposit for paychecks or recurring income, as these funds are typically available on the settlement date. Wire transfers also offer immediate availability upon receipt and verification.
How to contact Ally Bank about a check deposit issue? You can contact Ally Bank's customer service 24/7 by calling 1-877-247-2559. You can also send a secure message through your online banking portal or chat with a representative online.
How to resolve a held check with Ally Bank? If your check is held, Ally Bank should notify you of the reason and the expected release date. If you need clarification or believe the hold is unwarranted, contact Ally Bank customer service to discuss your specific situation. Providing additional documentation (like proof of funds from the check issuer) might help in some cases.
How to tell if a check is legitimate before depositing it with Ally? Look for watermarks, security features, and proper check formatting. Verify the issuer's information if possible. If anything seems suspicious, contact the check issuer directly (using a verified contact method, not information on the check itself) before depositing.
How to deposit a check larger than $25,000 with Ally Bank? For checks over $25,000, Ally Bank may apply a longer hold, potentially up to 5 business days for the full amount. While you can use eCheck Deposit for these, be prepared for a longer waiting period. For very large amounts, a wire transfer might be a faster option if the sender can accommodate it.
How to find Ally Bank's official funds availability policy? Ally Bank's official funds availability policy is detailed in their "Deposit Agreement." You can usually find this document on their website, often linked in the "Help Center" or "Legal" sections.
How to avoid common check deposit errors with Ally Bank? Ensure your check is clearly photographed (front and back) with all four corners visible. Make sure the endorsement is correct and legible. Double-check the entered deposit amount against the check amount to avoid discrepancies that could delay processing.
