Checks don't clear instantly, nor does the funds just magically appear in your bank account when you deposit it into your account. It can take days or longer to actually clear. If it is a bad check it could take more than a week or two before the bank finds out.
In many cases, the bank may front some or all the funds while the check is clearing. The danger here is that if the check is returned, those fronted funds will be deducted from your account immediately.
The BoA lawsuit concerned overdrafts caused by debit cards and sequencing withdrawals from high to low.
BoA was allowing debit users to overdraft their account and charging them a fee, USAA does not allow overdraft with your debit card.
How transactions are processed by USAA is defined in the Depository agreement I linked above.
"Transactions are generally posted each business day in the following order:
• Deposits into the account
• Withdrawals from the account by category (for example, ATM and debit card transactions,
electronic withdrawals, or checks). Within each category, items are generally processed from
lowest amount to highest amount."
This is basically the way the lawyer's in the lawsuit argued that transactions should be processed. It minimizes overdraft/returned check charges.
On the note of check deposits posting, if you have had some issues with your account management (late fees, NSF charges), then in accordance with the Depository Agreement deposits can be held longer to minimize financial loss to the bank.
I apologize for the inconvenience this hold has caused you. I would like to get you in touch with a banking specialist who can review your accounts and explain why a hold like this may be happening. If you could please send us a message here with the details you provided above and the best way to reach you, a representative will be in touch shortly.
I've recently noticed that USAA Insurance checks are from Bank of America; why is that?
P.S. I've tried to put the words stated above in the link provided by BrianaHartzellUSAA but it would not go through -- after clicking submit -- so I am asking it here. Same story. I have a check from USAA Auto Insurance that is for about 15 dollars and it says BofA on the bottom left; I want to know what's up with that. I've already confirmed that the check is legit and have already deposited it but the representative didn't know why it was from BofA.
Zeke07 - Thank you for your question, it is common practice for financial institutions to utilize an external bank to issue checks. Also, USAA Federal Savings Bank does not offer commercial banking services so we can remain focused on our individual members. Therefore, we have a long established relationship with Bank of America as our primary disbursement bank. Thanks for your membership and have a great day.
I don't work for USAA, I'm a member just like you. Unlike BoA, USAA is basically a member owned company.
I haven't seen the behavior your describing and don't fee it is there - but if you do, there are several avenue you can take your complaint, including the Consumer Financial Protection Board or the Better Business Bureau. You also have the option of taking your business elsewhere.
Best of luck to you.