- Holdovers are transactions that have not yet been processed by banks.
- The most common example is a check that is not deposited until the next business day after being received too late that day.
- A hold can cause a phenomenon known as a hold where money temporarily exists in two accounts at the same time.
- However, this duplication is usually quickly corrected by banks after processing the relevant checks.
- Holds may lead to illegal or fraudulent use of bad checks, such as floating checks and kiting.