The answer is simple and obvious: USAA gets the interest on all funds DECLARED in there accounts for each day of the hold !
Be for real, in this day and age, it takes 24-hours to get a deposit credited to an account... NOT 7-days ! Transactions submitted for processing NLT 1400hr are "processed" by submitting an authorized transaction to debit an account a specific amount, and credit it to USAA. It only takes24-hours because of the sheer volume, and the fact that it has to be "processed" at two locations - the Debtor, and the Creditor. Stop and think how long it takes a computer to add and subtract two numbers... the only way it take longer would be if you were using an abacus.
But, combined with the fees [because the economy is in the crapper, and people are feeling it], USAA is making a hefty chunk-o-change. And they're NOT about to change, realize the impact it's happening on the individual consumer, or make an effort to give you YOUR money sooner... but they are sorry you're going through the situation.
I've been associated with them for over 10-years, because I thought and believed that they represented military servicement. As a matter of fact, I've never heard so many people say I'm sorry in such a short span of time; I would applaud their empathy if it wasn't so obvious that they are, in fact, sorry... the sorriest bank I've ever dealt with.
I have been depositing the same paycheck for over two years now and all of the sudden I get a hold put on my account with not much of an explanation. I have reached out to USAA to try and explain why but did not get a complete answer. Maybe if I would have been warned, I might have understood a little. Why is it that this bank has been depositing the same paycheck for over two years with never a hold, all of sudden puts a hold on my funds? I am a single mom of three children that counts every penny, now I am trying to figure out what to do. I feel that someone is not telling the truth. I have always spoken highly about USAA because I felt they have always put customers first, but now I am second guessing that response.
I have held a USAA checking and savings account for over 17 years but am working on closing it. Over the time I have been with USAA I have had multiple accounts including Checking, Savings, Retirement, Auto and Renters Insurance, Auto Loans and Personal Loans. Additionally I am a legacy. All my family have been customers. My parents always told me that USAA was exceptional but I have had enough.
I have recently graduated from law school and while in the process of earning my degree, and on a VERY tight budget. My little part time employer repeatedly guaranteed that my weekly paycheck would be auto deposited and when it continually wouldn't I had a few ACH payments bounce. As soon as I noticed what happened I called USAA and they would waive the overdraft payment and I would manually deposit my check. I accept responsibility for what had happened but was doing the best I possibly could.
So now that I am back on my feet I thought all of this stress was behind me. However, I was very wrong! I made a deposit with my USAA ap on my phone. The balance reflected their entire $2000 as available. However this was WRONG! I was hours from home trying to use my debit card but it was declined. I phoned USAA and was told that I have a hold on the deposit for 7 business days. I was finally connected with a manager who told me that because I had carried low weekly balances and had payments overdraft that I was not able to access my deposit for 7 business days (which actually was 8 full business days). I was basically chastised. When I told the manager that I was hours from home without access to my deposit he offered to connect me the the credit card department so that I could take a cash advance! I was livid.
I called back later that evening when I got home hoping that the jerky manager was a fluke and that someone else would certainly be able to help me out. Instead I was shocked when I was lectured and offered help learning how to manage my finances! I again explained that the ap didn't tell me that I had a hold and was told that after I uploaded my deposit I should have logged onto the USAA website to know that I had a hold. Again, difficult when you have no idea that is even an issue. To that I was told that I should have read my user agreement that I apparently signed 17 years ago.
In short, I used to use USAA because they had great customer service and an advanced ap. Now that even small town banks have a the same mobile banking I won't be staying on as a customer. An 8 business day hold on a check is simply absurd but not even telling members that this is an issue and instead showing a balance as if the full deposit is there is unacceptable and can really leave people in bad situations.
Way to go USAA...you really are terrible!
I understand that USAA will place checks on hold for various amounts of time. I have yet to see a solid answer for how long, throughtout reading the other posts. I am not upset with USAA on holding the check (the bank gots to do what the bank gots to do). However, it saddens me to know that if the check is placed on hold, and it is the ONLY funds the person has, how are they going to live for the time the money is placed on hold.
As for my expirence, my payroll check was placed on hold. Last night I was at the store and about to check out of the line. Once I swiped the card, the transaction was declined. I immediatly check my account. My ENTIRE CHECK was placed on HOLD?!?!
That is all the money that I have. Not to mention that I need the money for medicine, bills, and rent. This type of expirence will make the banker go against the bank. I wish to not be that type of person. I would like to continue using USAA.
I am wondering if there are any solutions to USAA letting go of the money sooner.
Sadly, the answer really is, "it depends".
My last job before retirement was taking calls at a semi-national bank's 800 number. The general rule of thumb was that incoming direct deposits could take up to 5 business days, (not calendar days), before the deposit would be fully available, and out of the pending column.
I am presuming that the check you are referring to is a so-called direct deposit. Somewhat misleading isn't it? "Direct" implies funds pouring into your account, but in reality it's little more than a marker noting that funds are on the way, thus becoming a pending balance, not the available balance.
Though these transactions are performed electronically, the bank which issued the check has to acknowledge to the receiving bank that adequate funds were in the account from which the check was drawn. This is what takes the extra time. Banks tend to perform this processing in the overnight hours during the business week, except for banking holidays.
While I don't use USAA for checking, many banks will make $100 available to the customer while the clearing process continues, especially if you have a savings account.
While frustrating, the best thing you can do for yourself is to personally build up a reserve in your checking account roughly equivalent to one direct deposit paycheck. You don't have to do this all at once. Just set aside $20 per week for a month or two, and after some time it won't matter anymore how long it takes for direct deposited funds to become fully available, as you'll have an adequate balance to cover your necessary expenses. It is one step towards making your money work for you, and taking firm command of your finances in any way possible. I can't tell you how many customers I had who were flying their finances on fumes; many just didn't seem to understand the difference between the pending balance and the available balance.
USAA is splendid for insurance, which is why I am a customer. When it comes to banking, all institutions are subject to federal banking laws and regulations. For example, deposits over $10,000 or from foreign sources are subject to a 10 business day hold for federal money laundering regulations regardless of how long you have been a customer; it's just the law, and you must take this into account in your planning.
The best stategy is for you to recognize the inevitable clunkiness of banking procedures which have not quite made it into the 21st century, and take command of your money in your own way. In my 20's and 30's I simply hid $100 from myself in the checking account so as to avoid overdraft fees. This from a time when we used paper checkbook registers. This little trick probably saved me hundreds in overdraft fees before I became a better money manager. Think of your finances as an aircraft. You must constantly claw for altitude until you have a safety margin from which you can admire the view, instead of flying at treetop level, or worse...