Generally, financial institutions only put 'holds' on checks. A hold is placed for determined length of time to assess whether or not the funds are available. In other words, the financial institution needs to verify that the check is legitimate and that the funds will actually arrive, before you are allowed to withdraw that money. The time length of a hold fluctuates depending on how large or small the check is, and whether it is local or non-local.

Your particular question: "When the bank places transactions on a hold, is the money already taken out of the current balance?" has to do with the check clearing. 

When you deposit a check, the financial institution will represent your account in two ways: your "Current" balance and your "Available" balance. The Current balance includes the check you deposited, while the Available balance reflects the hold that has been placed on the check. The money isn't actually there until the check clears (when the institution receives and verifies the check). As far as the institution is concerned, the money is already there, but you will not be able to use it until it is verified.

I hope this answered your question! Keep them coming and be sure to stay tuned to www.youngfreestlouis.com for events, contests, and tips about financial topics and savings!