What type of hold is a 9 day hold?

• A. Regular hold
• B. Exception hold
• C. New Account hold
• D. New account exception hold

Answer: (C)

Holds on deposits are used to control when funds become available, and the duration often depends on account status and risk. A nine-day hold is a policy applied specifically to new accounts to mitigate fraud risk while the account proves its legitimacy and the deposited items settle. That makes the label for this scenario the new account hold.

Regular holds are the standard, routine holds for existing customers and deposits, not tied to the higher risk of a brand-new account. An exception hold is used when a hold needs to be extended for a particular item due to unusual risk factors, which isn’t the standard nine-day policy for new accounts. A new account exception hold would mix the new-account status with an exception, which isn’t the usual label for this nine-day duration.