What is the Expedited Funds Availability Act?

The Expedited Funds Availability Act is a federal banking law that applies to all banks in Maryland and across the United States. This law regulates how quickly banks must make funds from deposited checks available for customers. Under the EFAA, banks must make funds available for withdrawal no later than the second business day after the day of the deposit. In most cases, banks must make funds available on the first business day after deposit, however, there are a few cases in which banks can delay making funds available until the second business day. The EFAA applies to non-cash deposits—checks, money orders, and the like—that are made in person, by mail, by messenger, or at an ATM. It also applies to direct deposits, which are deposits that are sent electronically from an employer or other institution directly to the customer’s bank account. Banks may not charge customers any fees for making deposits that are subject to the EFAA. The EFAA helps protect consumers by ensuring that banks provide quick access to funds. This law also helps banks maintain a good public image, as customers will be more likely to trust their banks if they know that their deposits will be available for use quickly.

Related FAQs

What is the Home Affordable Modification Program?
What are the federal regulations for interest rates?
What is a loan originator?
What is the Alternative Mortgage Transaction Parity Act?
What is the Electronic Signatures in Global and National Commerce Act?
Are there any regulations governing ATM use?
What is the Consumer Leasing Act?
What is the Dodd-Frank Wall Street Reform and Consumer Protection Act?
What is the Fair Credit Reporting Act?
What is the Equal Credit Opportunity Act?

What is the Expedited Funds Availability Act?

Related FAQs

Related Blog Posts