How To Handle A Large Check Deposit Quickly

bobert456 | Jan 3, 2025 | 181 posts since 2022

TIME is money. It always seems like I get my hands on a large check, say $100,000 on Friday Afternoon. I want it deposited and to start earning interest as soon as possible. Don't want it sitting dormant over a weekend if I can avoid it. Making a deposit at a large bank will get it posted, but most have such low interest rates on any deposit that this is not an option.

Assuming it is early enough on Friday, one option might be a shared branch deposit to a credit union with a decent share account interest rate, but then I need one that will also pay interest even while that deposit may be in a HOLD STATUS for a few days. And some credit unions do not like LARGE SB deposits.

Edeposits (mobile banking) seem to have low daily/monthly limits, and in many cases do not pay interest until after the deposit clears. I'm OK with having a hold on the funds, but need it to be accruing interest during the hold.

We have lots of folks with lots of experience moving large funds here at DEPOSIT ACCOUNTS ( I sure miss KEN ). Do any of you have any solutions to large check deposits with quick posting of interest (like next day) during the hold period.

( FYI - ALLY has been great for many solutions, but they do not have branches and edeposits are limited to under 50K on a daily basis).

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Answers

Ally6770 | Jan 7, 2025 | 4,156 posts since 2010

I wire large sums but use Credit Unions and haven't used a bank in 7 years and most of the time wire money for CD's or IRA's that are all 6 figures. My local credit union has been matching my MM account which is also well into the 6 figures. I also have a large CD maturing in March but will have them put it in a free checking account like I do with my RMD's they opened for me and will deposit it in my local credit union if the CD rate I am looking at now changes.
This last Dec and and also on Jan 2, I wired two 6 figures CD's to other credit union for a better rate. The new CD's were made out the same day the credit unions received the money. Actually the 2 sending and the 2 receiving credit unions didn't even charge me a wire fee. The money was sent the morning the interest was shown as posted in the maturing CD's and the new CD's were made out the same day. They gave me the same rate for 5 yrs even though the rate had changed. I still try to make every penny earn interest even use the reward checking accounts and cash back credit cards and Costco gas with a 5% cash back credit card.

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Mak | Jan 4, 2025 | 1,110 posts since 2011

My mistake, P_D is correct, Vanguard will not pay on a mutual fund until the next trading day.... I don't think 2 days is a big deal, at least not to me. That's what I like about buying CDs and Treasuries in my Vanguard account... takes the hassle out of it, especially if the rates are close to direct cds.

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me1004 | Jan 7, 2025 | 1,377 posts since 2010

I'm with Vanguard (and it has gone from steller to being a garbage place - I no onger would recommend it. I'm kind of stuck there for now). I'm pretty sure it isn't necessarily the next day, it is the next close of the market, and that is the price you get. What you earn is how much the fund earned between that close and the next day's close. But your money is in there and earning interest at the close of the previous day. The way those things work is the only known value is the next close, and that is the close that determines the value of your deposit, even for a money market fund.

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Mak | Jan 7, 2025 | 1,110 posts since 2011

Yes, I've noticed it isn't the same Vanguard it used to be but I still like it and I'm used to it so not that big of a deal to me.

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deplorable_1 | Jan 4, 2025 | 2,154 posts since 2020

Yeah that's a tough one I think my limit is $15,000 per day with BoA and their checking pays 0% anyway necessitating a quick transfer out to DERI as soon as the hold clears. I usually opt for an ACH pull unless the FI does not allow it. Your other Idea of using a credit union shared branch might work if you can find one that allows $100,000 or more. The ones around me cap out at $50,000. For small checks I'll use Redneck/AllAmerica mobile deposit.

This may sound stupid but I just take large checks to a BoA branch to deposit and set up my ACH transfer to DERI(Dominion Energy Reliability Investment) or FIA(Ford interest Advantage) right away. What usually happens is when the check clears on Monday(providing BoA is not requiring a longer hold) the cash gets sucked out and I'm making 4-5-6% on it by Monday with $0 wire fees. The rates on most credit union savings accounts are not that good and if they hold it for a week at a low rate you are losing even more money.

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Mak | Jan 3, 2025 | 1,110 posts since 2011

I belong to quite a few credit unions and their rates on savings accounts or money markets is pretty low so lately I wire to either Chase and pay the outgoing and incoming wire fee or I wire to Vanguard who doesn't charge a wire fee... depends on what I'm going to do with it, Vanguard pays interest as soon as they get it.

Last time I deposited a large check from Mountain America into my Chase account, Chase put it on hold for a week so I don't do that anymore...;)

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John19 | Jan 6, 2025 | 389 posts since 2022

I had a $500k check that I deposited at Navy Federal onto their Jumbo Money Market so it at least got 2.25% for the seven day holding period. If you live near a bank like Capital One you can go in branch and deposit it on your savings account or maybe a Citi no-penalty CD might work.

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John19 | Jan 6, 2025 | 389 posts since 2022

I bought VTI and some 5% CDs. I didn't leave it at Navy Federal lol.

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bobert456 | Jan 25, 2025 | 181 posts since 2022

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bobert456 | Jan 25, 2025 | 181 posts since 2022

again, post got truncated

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JPQ | Jan 5, 2025 | 14 posts since 2022

Fidelity brokerage will start giving interest on deposits made into your 'core' account the same day. Haven't tried that but that's what I was told.

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bobert456 | Jan 6, 2025 | 181 posts since 2022

I believe you are correct, but then they hold the funds for up to 16 WORKING DAYS. By that time, and CD special you were wanting to use is probably closed

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bobert456 | Jan 25, 2025 | 181 posts since 2022

keep getting truncated .... will post via a new subject

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