See
here for the appropriate Federal Reserve regulation. Local and non-local may refer to Federal Reserve district. The Philadelphia Fed is district 3. The district number will show on your check.
Basically, with rate margins being so low, banks two major sources of income are fees and float.
When '
Check 21' went into effect, it streamlined check processing, but the older float periods were kept in place.
Quote:
(b) Local checks and certain other checks. Except as provided in paragraphs (d), (e), and (f) of this section, a depository bank shall make funds deposited in an account by a check available for withdrawal not later than the second business day following the banking day on which funds are deposited, in the case of—
(1) A local check;
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Quote:
(c) Nonlocal checks —(1) In general. Except as provided in paragraphs (d), (e), and (f) of this section, a depositary bank shall make funds deposited in an account by a check available for withdrawal not later than the fifth business day following the banking day on which funds are deposited, in the case of—
(i) A nonlocal check; and
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09-19-2008, 09:24 PM
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