Your Ability to Withdraw Funds

Last Revision Date: 9/2014

This policy statement applies to all deposit accounts.

Our policy is to delay the availability of funds from your cash and check deposits. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written. Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

Determining the Availability of a Deposit

The length of the delay is counted in business days from the day of your deposit. Every day is a business day except Saturdays, Sundays and federal holidays. If you make a deposit before the cutoff time on a business day that we are open, we will consider that day to be the day of deposit. However, if you make a deposit after the cut-off time or on a day we are not open, the deposit will be considered to have been made on the next business day we are open. The time of the day that we post the cut-off notice, if any, may vary by branch. In no event, however, will the cut-off time be earlier than 2:00 P.M.

The length of the delay varies depending on the type of deposit and is explained below.

If you make a deposit at an ATM that is owned and operated by us before 2:00 P.M. on a business day that we are open, the deposit will be considered to have been made on the next day we are open. However, if you make a deposit at an ATM on or after 2:00 P.M. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

If you make a deposit through our Remote Deposit Capture program before 6:00 P.M. on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit through our Remote Deposit Capture program on or after 6:00 P.M. or on a business day that we are not open, the deposit will be considered to have been made on the next business day we are open.

If you make a deposit through our Leader Mobile Deposit program before 5:00 P.M. on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit through our Leader Mobile Deposit program on or after 5:00 P.M. or on a business day that we are not open, the deposit will be considered to have been made on the next business day we are open.


Same-Day Availability

Funds from the following deposits are available on the same day they are deposited:

  • Electronic direct deposits to your account
  • Wire transfers
  • Cash deposits made at the Leader Bank's teller stations

Although Remote Deposit Capture and Leader Mobile Deposit programs utilize technology as a delivery method, checks deposited through these services are processed in the same manner as a paper deposit you would make at a branch or ATM and are NOT considered “electronic direct deposits” for purposes of funds availability.

Next-Day Availability

Funds from the following deposits are available on the first (1st) business day after the day of your deposit:

  • Cash deposits made at the Leader Bank’s ATMs prior to 2:00 P.M.
  • Checks drawn on Leader Bank
  • U.S. Treasury Checks that are payable to you
  • Federal Reserve Bank Checks, Federal Home Loan Bank Checks, and U.S. Postal Service Money Orders, if these items are payable to you
  • State and local government checks from the state in which Leader Bank is located
  • Cashier’s, certified, treasurer’s and teller’s checks, including out-of-state checks that are payable to you if you use a special deposit ticket available from our tellers
  • Checks deposited on a business day through our Leader Mobile Deposit program prior to 5:00 P.M.
  • Checks deposited on a business day through our Remote Deposit Capture program prior to 6:00 P.M.
  • All other local checks

If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it. If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.


Longer Delays May Apply

Case-by-case delays: In some cases, we will not make all of the funds that you deposit by check available to you according to the preceding schedule. Depending on the type of check that you deposit, funds may not be available until the second business day after the day of your deposit. The first $200 of your deposits, however, will be available on the first business day.

If we are not going to make all of the funds from your deposit available according to the preceding schedule, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the first business day after we receive your deposit. If you need the funds right away you should ask us when the funds will be made available.

Safeguard Exceptions

In addition to the case-by-case delays outlined above, funds you deposit by check may be delayed for a longer period under the following circumstances:

  • We believe a check you deposit will not be paid
  • You deposit checks totaling more than $5,000 on any one day
  • You redeposit a check that has been returned unpaid
  • You have overdrawn your account repeatedly, or would have overdrawn your account if checks had been honored in the last six (6) months
  • There is an emergency, such as failure of computer or communications equipment

Unlike the case-by-case delays outlined above, the first $200 of your deposit held under a safeguard exception will not be available on the first business day after your deposit. We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit.

Special Rules for New Accounts

If you are a new customer, the following special rules will apply during the first 30 days your account is open.

Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfers, and the first $5,000 of a day's total deposits of cashier's, certified, teller's, treasurer's, travelers, federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. (e.g. The checks must be payable to you - you may have to use a special deposit ticket). The excess over $5,000 will be available on the fourth business day after the day of your deposit. If your deposit of these checks (other than a U.S. Treasury check) is not made in person to one of our employees, the first $5,000 may not be available until the second business day after the day of your deposit.

Funds from all other check deposits will be available as follows:

  • Deposits made in person- Funds will be available on the fourth business day after the day of deposit to withdraw in cash and pay checks you have written to others
  • ATM deposits- Funds from deposits of all other checks made at automated teller machines (ATMs) may not be available until the sixth (6th) business day after the day of your deposit to withdraw in cash and pay checks you have written to others

Deposits at Automated Teller Machines

Funds from any deposits (cash or checks) made at automated teller machines (ATMs) we do not own or operate may not be available until the fifth business day after the day of your deposit. This rule does not apply at ATMs that we own or operate.

All ATMs that we own or operate are identified as our machines.

Foreign Items

If you deposit a check drawn on a bank outside the United States (including Canadian financial institutions) and not payable through a U.S. branch or bank, we will make these funds available when we receive notification of payment.

Night Depository

Deposits received at a night depository are considered as received on the next business day.

Bank by Mail

Deposits received by mail are considered deposited on the business day that they are received by the Leader Bank.

Small Business Banking Partnership Program

In the spring of 2011, Leader Bank began participating in the Small Business Banking Partnership (SBBP) program. The SBBP is a program between Massachusetts banks and the Massachusetts Department of Treasury, designed to spur small business lending and promote job creation.

From April 2011 through March 31, 2017, Leader Bank has closed 375 small business loans and lines of credit in Massachusetts, totaling over $49.7 million of committed lending, thanks in large part to the SBBP. These loans have helped to create over 985 jobs in the Commonwealth. We at Leader Bank are proud to be a part of the SBBP, supporting the small businesses that drive job creation.