After customers of the bank formerly known as IndyMac waited in blistering heat to get their life savings out of the bank many are finding out that the piece of paper they just got may not help them out so much after all. The LA Times reports that WaMu is placing an 8 week hold on checks issued from IndyMac. Other area banks are also placing partial holds on funds coming from IndyMac but to a much lesser extent.
There is no excuse for WaMu to place an 8 week hold on a check from a federal insured and currently FDIC controlled bank even if they do claim it is to prevent forged checks. The acting chief of IndyMac in Pasadena has a similar sentiment, and is contacting other local institutions to try and smooth the process. Wells Fargo is another bank who has placed extended holds on funds coming from IndyMac but these holds only apply to a portion of deposits over $5,000 and should be released into the account within 9 days.
These partial holds are pretty common when you make a large deposit at an institution even when the money comes from a reputable source. The last time I had to deal with a large check the funds were dispersed into my account over the course of a week, with a small portion being available immediately.
If you are upset by WaMu's decision to place these exorbitant holds on your money, then simply walk across the street to another bank and find one that will take your hard earned money. Do you really want to settle for a bank that treats you like this on the first visit? Imagine what it will be like after you're already committed and breaking up is difficult! When you set up your new account make sure you take the right steps to keep all of your money under FDIC insurance.
WaMu placing 8 week holds on IndyMac checks!