What is The meaning of “FM deposit hold-see SM” ? (Don’t Panic)
Big business often uses a lot of acronyms in their day-to-day operations and banks are no exception. Certain words, abbreviations, and acronyms may hold some meaning for a bank employee, but these same words will draw blanks from customers. So, if you’ve seen the words FM deposit hold-see SM on your statement, then we wouldn’t be surprised if your first reaction was, “What the!”.
Thankfully, we’ve written a quick explanation on what ‘FM deposit hold-see SM’ means for you. Along with this, we’ve answered some common questions around the processes related to FM deposit hold-see SM.
So, what does FM deposit hold-see SM actually mean?
FM deposit hold-see SM is a term used by banks to indicate that a deposit has been made, but that the funds are not yet available for use. SM means Special Mention, and denotes why the deposited funds are not available for use. This is usually due to the bank needing to verify the deposit, which can take a few days (each bank is different). In the meantime, the funds are typically held in a separate account or placed on hold. Once the bank has verified the deposit, the funds will be released and available for use. Typically, these holds are generally placed on check deposits.
In addition, there are other reasons why a customer might receive an FM deposit hold-see sm. For example, if a customer makes a cash withdrawal, the bank needs time to process the transaction before it can release the funds. If a customer tries to make a transfer between accounts, the bank needs time so they can ensure the correct amount is being transferred.
The most important thing to remember about FM deposit hold is that it is a temporary hold on your funds.
But really, why is the bank putting a hold on the checks?
A bank may place a “FM deposit hold-see SM” on a deposit to protect itself from potential losses. This hold ensures that the bank has the funds available to cover any checks or withdrawals that may be made against the deposit. The bank may also use this hold to ensure that the deposit is not used to cover any outstanding debts or liabilities the customer may have.
What should you do if you see FM deposit hold-see SM on your account?
If you notice an FM deposit hold-SM on your statement, don’t panic. It’s best to contact your bank to enquire about the deposit in question and why it was placed on hold. Each individual bank has their own process when it comes to deposits, particularly checks.
How long can a Bank put a hold on your deposit?
This depends on the method of transfer and the amount of money involved. Usually, cash or electronic funds are cleared within 24 hours. Checks take longer to process and can be anywhere from 3 to 9 business days.
Conclusion: FM Deposit HOLD-SEE SM
If FM HOLD (deposit) appears on your statement, it indicates that there is a hold on your money. A “hold” is a situation where funds are unavailable for a brief period. This status was created so that you can use the money even though it is still in your account. Once the hold is removed, you can spend the money. Overall, a hold is put in place to safeguard banks, and to warn you that if you spend your money, you do it at your sole risk.
