|
How a check becomes
money in the bank
By Michelle
Samaad • Bankrate.com
| The check-clearing
process |
| Step 1
|
 |
Check is deposited into checking
account. |
| Step 2
|
|
Bank or credit union routes the check
by computer from the recipient's to the check writer's bank,
making sure that the money is there and that the check is legitimate.
Banks are required to make money available between one and five
business days. |
| Step 3
|
|
The check is then shipped to one
of the regional Federal Reserve banks for clearance. |
| Step 4
|
|
The check is sent back to the recipient's
bank from the Federal Reserve and the money is made available. |
-- Posted: March
30, 1999
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