On my last 2 deposits through the UPS Store with money orders, one for $160 and the other for $500, there has been holds placed on a portion of my deposits. For the $160, $60 was placed on hold. And then for the $500, $400 was placed on hold. I can't tell you how inconvenient this is. The $60 has been on hold for over a week. I'm about about to open a new account with another bank and make this one a secondary account. Love the benefits with USAA, but I can't deal with not knowing what portion of my deposits will be available to me and my family. Not a very customer friendly policy.
If you give us a call at 1-800-531-8722 a banking specialist can talk to the reasons for your specific holds on your money orders.
I am trying to find more user friendly language about deposit holds policies (other than our depository agreement, which is pretty lengthy).
Money orders are an acceptable item to deposit via the Easy Deposit service. As such, funds deposited, including a money order, are subject to the funds availability policy outlined in the Depository Agreement.
In case you are interested, the deposit hold times and policies begin on page 28.
Thank you for posting.
MHarley. Money orders can be fraudulent just like a check. People have the misconception that cashier's checks and money orders are instant cash. They are guaranteed funds, which is different. Guaranteed funds means that once the money order or cashier's check has been verified, the funds are guaranteed to be there. A personal check has no guarantee the funds will be there. So when you deposit a money order, until the paper is verified by the company that issued it, to USAA, that money order is nothing but a piece of paper until it has been verified. Providing you instant access to the money is basically an un-secured loan. Given the thousands of checks presented to USAA each day (maybe millions?), what if they gave money to everyone and half of them were fakes?
Now generally, USAA does not hold my funds due to a long relationship. But you might consider this. Open an account at a local credit union that has free checking, assuming you are stateside. Deposit your money there. I will transfer money for bills to USAA and keep my "allowance" or spending money in the credit union. It helps control spending. You can log into USAA and set up a transfer between USAA and your credit union account. After the initial setup, which does take a few days, you can usually transfer money between the two quickly. Once USAA is used to you doing this, if you do the transfer from the USAA account (not logged into the credit union), USAA will give you instant access. The credit union normally will make you wait at least 2 business days if you do the transfer from their software.