Deposit Hold Enhancements

This project enhances the existing deposit holds features so that a credit union can opt to release funds differently for amounts above a certain $ amount threshold (such as $5,000), on a single deposit.  For example, if a member deposits a $17,500 check, the system could be instructed to hold the first $5,000 for 3 days, and the remaining amount ($12,500) for an additional 4 days, or a total of 7 days (3+4).

To accomplish this, we will take advantage of how our current uncollected funds records already work.  Two separate hold records would be created, and the Reg CC next-day release, if applicable, would apply only to the first one.  In a nutshell, we’ll be doing automatically what many CUs do now, manually, to handle holds on large deposits.

The above sample shows how a deposit of $17,500 would be handled, if a CU had set the new flag to add 4 days to any deposits over $5,000.  Notice how the Reg CC release date on the first $5,000 is set to the next day (this sample assumes the CU is using calendar days), but the hold on the remaining $12,500 has a Reg CC release date that is the same as the release date for the entire hold (meaning an additional $225 will not be released out of that amount).

This will be a new, global setting that affects how ALL deposit holds are placed, no matter how other channel-specific settings (teller, mail/direct, RDC, and ATM) are configured.  There will also be an override setting added to the Electronic Deposit Hold Group code so that CUs can assign different parameters for brand-new accounts, for example, or in other special situations.

This technique means we don’t have to change the hold days input fields that currently appear on Teller and Mail/Direct Post screens, which allow tellers and MSRs to manually input a hold.  Instead of requiring the user to figure out the hold below a certain $ amount and the hold above that amount (and maybe even the $ amount itself), with this global flag the CU can say that the teller simply has to decide on the standard hold for any check, and the system will tack a certain number of additional hold days for any amounts above the CU’s general threshold (typically $5,000).  This also makes it easier if the $5,000 guideline changes to $7,500, or $3,000, or whatever, down the road.

Some caveats:

  • We will be supporting changes to the way release dates are communicated on member receipts (see Page 6) but ONLY for the new vertical receipt format being introduced with Xpress Teller. Horizontal receipts will show only a single release date like now.
  • Will not be changing the way holds are placed on transactions via national shared branch teller.
  • If a CU uses this, they will not be able to use the 6-tier holds by check amount functionality in our holds configurations.
  • Remember that although we don’t have a mechanism for different tiered holds based on $ amount for business memberships vs. individuals, since CUs can configure and assign different EDHG codes, they can still treat organizations differently if they so choose.

We need a champion!

Status: Specs are ready, but we need a champion!  In order to make room for this project on our development schedule, we need credit unions to step up, review our plan, and commit to using the new features when they are released.  Contact Keegan Daniel or leave a comment below if you want to push this project forward!

Chefs for this recipe are Dawn Moore and Keegan Daniel.

 

Updated
December 22, 2020

2 Responses to “Deposit Hold Enhancements”

  1. Jennifer Timmins

    YES I would love to help push this project forward. Can you tell me if this will show up as 1 check deposit of $17,500 or will it show as seperate check deposits in the history? Also will the release dates all print on the member receipt?

    Reply
    • Dawn Moore

      The plan would be for the new vertical receipt output to show two entries:
      Funds held: $ 5,000.00 available 07/06
      Funds held: $ 12,500.00 available 07/10

      The horizontal receipt format would only show one entry, using the latest release date:
      Funds available on 07/10/21

      Reply

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