ACH deposit holds
ACH deposits are held for five business days after settling before you can withdraw them. Learn how the hold works, what you can do during it, and how it affects portfolio line of credit.
Why is there a hold on my ACH deposit?
When you deposit cash into your Frec account via ACH, the funds are subject to a holding period before they can be withdrawn back to an external bank account. It gives the originating bank a reasonable window to return the ACH if there is an issue such as insufficient funds, unauthorized debit, fraud, etc.This is a standard regulatory practice across U.S. brokerages and financial institutions.
This article walks through what the hold is, how long it lasts, and how to calculate when your funds will become available.
How long is the hold?
ACH deposits typically take 1–3 business days to settle after you submit the transfer. Once the deposit is complete, the funds are held for 5 full business days before they become available for withdrawal. Weekends and bank or brokerage holidays do not count toward the 5-day window.
Example: A $100,000 ACH deposit is initiated on Monday, March 30, and it completes on Tuesday, March 31. Good Friday falls on Friday, April 3, so it is not counted as a business day.
|
Date |
Day |
Notes |
|
Mon, March 30 |
— |
Deposit requested |
|
Tue, March 31 |
— |
Deposit completes |
|
Wed, April 1 |
Day 1 |
|
|
Thu, April 2 |
Day 2 |
|
|
Fri, April 3 |
— |
Good Friday (not counted) |
|
Sat, April 4 |
— |
|
|
Sun, April 5 |
— |
|
|
Mon, April 6 |
Day 3 |
|
|
Tue, April 7 |
Day 4 |
|
|
Wed, April 8 |
Day 5 |
|
|
Thu, April 9 |
Hold released |
Funds available to withdraw |
So a deposit that completed on March 31 would be available to withdraw on April 9. During this time, the account will be subject to a $100,000 withdrawal restriction.
What can I do during the hold?
The hold only restricts withdrawals, not how you use the cash inside Frec. Once the deposit settles, you can:
- Invest the funds in a direct index
- Use the funds to purchase stocks and ETFs in your Self-managed stocks
- Invest the funds into Treasury
- Set up a portfolio allocation
The only thing you cannot do during the hold is move the cash out to an external bank account.
What about portfolio line of credit (PLOC) withdrawals?
The ACH hold will apply a withdrawal restriction on the entire account. Therefore, the withdrawal limit will also apply to your PLOC. For example, if you deposit ACH funds into Frec, use them to buy stock or invest in a direct index, and then borrow from a PLOC collateralized by that stock, the funds will be subject to the withdrawal restriction.
Withdrawing to a different bank account?
After the hold, ACH deposits can only be withdrawn to the originating bank account if they have been held in the Frec account for less than 60 calendar days.
Note: This hold is separate from your daily ACH transfer limit, which caps how much you can deposit via ACH in a single day. See Daily ACH transfer limits for details on that limit and how to request an increase.
Still have questions?
If you're unsure when a specific deposit will be available for withdrawal, you can check the deposit's status under the Transfers tab, or contact us and we'll walk you through the timing.