Holdovers usually occur when a bank does not have enough time to process all of the payments it has received before the end of a business day. They are typically found in large cleari… See more

When a bank has holdovers, it will provide the depositor with a deposit ticket processed on the date that it received the instruments. Nevertheless, this situation can give ris… See more

Although holdovers are generally rare at individual banks, they are relatively common if viewed at the level of the overall financial system. For instance, the Federal Reserveha… See more

While holdovers allow for checks to properly clear, they also provide banks with essentially "free" funds. In order to keep banks from misusing these funds, the Monetary C… See more