Many bank customers sometimes encounter an issue where they are unable to withdraw their full available balance from an ATM or bank teller. There are several potential reasons why you may not be able to access all of your available funds right away.
Account Holds
One of the most common reasons your current balance may be lower than expected is if there is a temporary hold on your account. Banks can place holds on funds in your account for various reasons, including:
- Pending electronic transactions – Any payments you have authorized like debit card purchases, ATM withdrawals, online bill payments, etc. that have not yet cleared your account.
- Check holds – When you deposit a check, banks will usually place a 2-5 day hold on those funds until the check clears.
- Overdraft protection holds – If you make transactions that overdraw your account, banks will often temporarily freeze funds available in linked savings accounts or lines of credit.
- Security holds – If your bank suspects fraudulent activity on your account, they may freeze funds while they investigate.
- Levy/legal holds – If your account is subject to any legal levy or garnishment, access to funds may be restricted.
In most cases, these types of holds are temporary and will expire once the pending transactions clear or the bank completes its review. The funds are not lost, they just can’t be withdrawn during the hold period.
Timing of Updates
Another reason your balance may seem lower than it should relates to the timing of when transactions are processed and balances are updated. Your current balance only reflects transactions that have actually posted to your account up to that point in time. Any recent payments, purchases or deposits may not be counted in your available balance yet.
For example, if you make an online bill payment or use your debit card for a purchase, that payment will be immediately authorized and deducted from your available balance. But it usually takes 1-3 days for that transaction to actually post to your account. During that processing time, your current balance would be lower than if the payment had already cleared.
The same applies to deposits – if you deposit a check via ATM or mobile app, the funds are immediately available for withdrawal but can still take a few days to fully post. Some banks update balances in real time, while others do it in batches overnight. Timing differences between when transactions are initiated versus when they post can create temporary discrepancies between your actual and current balances.
Minimum Balance Requirements
If your account has certain minimum balance requirements, failing to meet those can reduce your available funds. Many banks require you to maintain a minimum balance in order to earn interest, avoid monthly fees, and/or qualify for certain benefits or rates.
For example, if your account normally requires a $500 minimum daily balance but your balance drops to $400 at some point, the bank may restrict access to the full balance until it reaches the minimum level again. The specific minimum balance rules depend on your banking agreement.
Overdraft Settings
Your overdraft coverage settings can also impact the balance displayed as “available” in your account. Some banks by default show your current balance minus any overdraft amount you would incur if you attempted to withdraw those funds. For instance:
- Actual account balance: $100
- Overdraft limit: $50
- Current balance shown: $50
In this case your displayed available funds do not include the extra $50 you could potentially overdraw, because the bank assumes you may not want to incur that overdraft fee. You can typically request to show your full current balance, but by default some banks will subtract out your overdraft limit.
ATM Withdrawal Limits
The maximum amount you can withdraw from an ATM in one transaction is restricted regardless of your account balance. Most banks set a daily ATM withdrawal limit ranging anywhere from $300 to $1,000 or more. That means even if your balance is $5,000, if your daily limit is $500 you could not take out more than $500 at once from the ATM.
This limit is designed to reduce the risk of large fraudulent withdrawals. You would need to make multiple smaller withdrawals to reach your full available balance. The same limit does not usually apply to teller withdrawals inside a branch, so you may be able to access your full balance at the teller window.
Hold On New Accounts
For brand new accounts, banks will commonly place a hold on withdrawals for the first 5-10 business days. This allows time for any deposits to officially clear and helps prevent fraud on new accounts. Even if your new account balance reflects a certain amount, you may not be able to withdraw more than a few hundred dollars per day initially. After this introductory hold period ends, you’ll be able to access the full available balance.
Incorrect Balance Displayed
In some cases, the available balance displayed in online/mobile banking, at the ATM, or on your statement may simply be incorrect due to a technical error. Your balance and transaction history are constantly updating, so an issue on the bank’s end could lead to incorrect info being displayed. If you notice your current balance seems unusually low compared to your records, check your most recent transactions. If there are no holds or pending items you’re aware of, contact your bank to confirm your actual balance.
How to Access Your Full Balance
If holds, pending transactions, or other restrictions are temporarily limiting account access, here are some options to obtain your funds:
- Wait for holds/transactions to clear – Holds are usually short-term, so you just need to wait out the period of the hold or for transactions to finalize posting to your account.
- Visit a teller – Bank tellers typically have the ability to view holds and withdraw cash in excess of ATM limits if your balance allows.
- Link external account/card – If you connect a credit card or external bank account, you may be able to transfer funds via that method to temporarily access more cash.
- Request an increase in ATM/purchase limits – Contact your bank to ask about increasing your withdrawal and spending caps, if needed.
- Split transactions into smaller amounts – You can conduct multiple smaller withdrawals/purchases to work within temporary restriction limits.
Keep in mind it’s a good idea to maintain emergency funds in accounts without any holds or restrictions, so you have quick access if ever needed.
Avoiding Problems Accessing Your Full Balance
To help prevent problems accessing all of your available funds in the future:
- Review your account agreements and minimum balance requirements to avoid holds related to low balances
- Keep careful track of any outstanding payments, checks, or transfers that could lead to discrepancies between your records and current balance
- Be aware of your bank’s funds availability, transaction posting schedules, and daily withdrawal limits
- Contact the bank immediately if your balance seems inaccurate or you spot unauthorized transactions
- Link a secondary account or credit card that you can transfer funds to quickly as needed
Summary
There are a variety of reasons you may not be able to withdraw your full current balance at times, from temporary holds to daily limits. The funds are still there but access is restricted temporarily in most cases. Be aware of your bank’s specific policies, keep careful records, and consider linking secondary accounts to access more funds if your main account has restrictions. Maintaining emergency savings outside of your main bank account can also help ensure you have access to reserve cash when needed.
Understanding the reasons for reduced available balances enables customers to anticipate situations where access to all their funds may be limited. Being informed, planning ahead, and communicating promptly with your bank can typically resolve most issues withdrawing your full current balance.
Frequently Asked Questions
Why is my current balance less than what I think it should be based on my records?
The most common reasons your current balance may be less than expected are temporary holds on funds by the bank (for pending transactions, checks on hold, account security, etc.), timing differences between when you initiate transactions versus when they post to your account, minimum balance requirements that have not been met, exceeding daily withdrawal limits, or errors in the displayed account balance.
How can I find out if there is a hold on my account?
The easiest way to find out if your account has a hold restricting access to your funds is to contact your bank. Your online/mobile banking, bank statements, transaction history and customer service can all confirm whether any type of hold or freeze is present on the account.
How long do holds last on checks, payments or withdrawals?
Hold periods on checks, electronic payments and account withdrawals can range anywhere from 1-10 days at most banks. Some common timeframes are:
- ATM/debit card point of sale transactions – 1-3 days
- ACH transfers – 3-4 days
- Outgoing wire transfers – 1-2 days
- Deposited checks – 2-5 days
- Foreign checks – up to 30 days
The hold length depends on the bank, type of transaction, and assessed risk factors. In some cases holds may be extended if fraudulent activity is suspected by the bank.
Can I access the funds on hold?
You typically cannot directly access funds that are on hold until the hold expires and transactions fully clear your account. Options to obtain funds on hold include waiting for the hold to lift, withdrawing cash from a teller instead of ATM, linking and withdrawing from an additional account, requesting a temporary hold lift or limit increase from your bank.
How can I avoid holds being placed on deposited checks?
To reduce the chance of holds being placed on your deposited checks:
- Ask your bank about availability policies for various check amounts
- Deposit checks in person with a teller when possible
- Only deposit checks from trusted, reputable sources
- Notify your bank ahead of time for very large check deposits
Some banks offer immediate availability on the first portion of funds from deposited checks (e.g. $200 right away).
Why are my debit card purchases showing as pending?
When you make a purchase with your debit card, the transaction is authorized against your available balance but can remain in a pending state for 1-3 days before finalizing and posting to your account. This lag time counts as an account hold and the pending funds will be subtracted from your available balance. Pending transactions will eventually disappear as they finish processing.
How can I avoid overdrafts due to pending transactions?
To help prevent overdrafts caused by pending transactions:
- Carefully track all debit card purchases and payments to account for pending items
- Don’t assume your full balance is available to spend while pending transactions process
- Avoid swiping your debit card when your available balance is low
- Sign up for text/email alerts from your bank when your balance drops below a certain level
Why do ATM withdrawals have daily limits?
ATMs have daily withdrawal limits to reduce the risk of fraudulent activity and large cash losses. Standard limits range from $300 to $1,000 but can go higher if requested. To withdraw more than the ATM limit, visit a bank teller or make multiple smaller ATM withdrawals throughout the day.
How can I withdraw all my cash from a new account?
On brand new accounts most banks will place a 5-10 day hold restricting withdrawals. To access funds sooner:
- Ask your bank to expedite availability on certain deposits
- Link an external account to transfer funds
- Use a teller to withdraw larger cash amounts if available
- Time major withdrawals until after the new account hold period
What happens if I go below my minimum balance?
Falling below your account’s minimum balance requirement can result in holds being placed on your available funds, inability to earn interest, monthly service fees, and loss of certain benefits. Be sure to understand your account’s minimum balance rules and keep sufficient funds to avoid potential holds or fees.
Conclusion
Unexpectedly not being able to access your full account balance when you need it can cause problems and frustration. But being aware of the various holds, limits, and timing considerations that often come into play can help you anticipate potential issues. Keeping careful track of your transaction history, understanding your bank’s specific policies, planning ahead for large purchases/withdrawals, and maintaining emergency funds in a separate account can go a long way towards ensuring you have access to your money when needed.
