This process can take days, or even a week or more. Holds may also be placed when a large dollar amount (more than $5,000) is deposited or when funds are deposited into a new customer's account. First published on 10/03/2011. Can a bank refuse to accept a check deposited into a customer's account? Answer: Normally yes, but that would be governed by the language in your depositor's agreement. However, you … Also, when there is an insufficient amount of money in the drawer’s account, there is absolutely no way that the bank will honor the check. Banks can refuse any deposit for any reason. He can either wait, or not be dumb and deposit it in some kind of interest bearing account. Filed under: Legal for all debts, public or private, doesn't mean quite what I used to think, either. Recipients may prefer cashier's checks because: Most banks reserve the right to refuse any check for deposit. When someone to whom you have written a check deposits it, their bank will look at the check and encode it with the amount. Most commonly, banks hold a check because the collection of the money may be in doubt or the check looks suspicious for some reason. My brother recived an unemployment check and has no bank account. In effect, your bank stands behind the check and guarantees that the recipient, or payee, can deposit or cash it and receive the promised funds. print email share. Can a bank refuse to deposit a check into your account because the check is from a former customer that owes the bank $30.00. Otherwise, the issuing bank will refuse to pay the bank at which the check was deposited. My husband and I keep sep. checking accounts. I tried to deposit into my account and was refused because he owed the bank thirty dollars. How can a bank refuse to deposit legal tender in the United States? By accepting a two-party check as a deposit the banks may feel they have liability if there were a dispute between the parties. The wording on the check also determines where the check can be deposited. If the check is written to you or another party, then you or the other person can deposit the check into an individual account. They'll allow us to deposit the check into my account and then withdraw the funds but we both have to be present and show I.D Is this even legal? As one of my bank accounts is local (he banks strictly online), he occasionally will go to my bank to cash a check. Can a bank refuse to cash their own check? Banks can place "holds" on checks for a variety of reasons. First published on BankersOnline.com 10/3/11. They didn't refuse to cash it, they told him they need time to gather $50,000 and verify the check is legitimate which is a completely reasonable action. 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