How long does a cheque take to clear? The answer, unfortunately, is "it depends." When you deposit a cheque, your bank places a hold on most or all of the funds until it can confirm that the account linked to the cheque has enough money to cover the full amount written on the cheque, which can take days.
If you’re trying to figure out how to remove a hold on a cheque that you've deposited, your best option is to reach out to your bank and ask for the hold to be shortened or removed altogether.
This article discusses the rules and legalities behind cheque holds, explains why the government requires them, and lists the exact hold times for several popular Canadian financial institutions.
Key Takeaways
- A cheque hold is a temporary delay that financial institutions implement to prevent you from accessing your deposited funds.
- Canadian banks have the right to hold cheque funds for four to eight business days, depending on the deposit method and amount. This may be longer in certain circumstances.
- To reduce or avoid cheque holds, consider requesting certified cheques, opting for electronic deposits, or choosing in-person deposits over ATM or mobile app deposits.
How to remove a hold on a cheque
If your cheque is held, there isn’t much you can do to have it released, other than request that the bank remove or shorten it.
To help your case, you may point out your good standing with the bank and ensure that you have more money in the account than what you’re depositing with the cheque. This will show the bank that you can cover the funds in case the cheque bounces.
On the other hand, there are certain things you can do to shorten or avoid cheque holds altogether. Here are some examples:
- Request a certified cheque, bank draft, or money order from the payer, as opposed to a personal cheque. Since the funds here are guaranteed, it’s less likely to be held, especially if you see a bank teller at a branch.
- Opt for electronic deposits instead of cheques.
- Deposit in person (at a branch) rather than an ATM or mobile app. In-person deposits tend to have shorter hold periods.
What are cheque hold periods?
A cheque hold period is the amount of time the funds are held before being released. The maximum cheque hold period for federally regulated financial institutions in Canada ranges from four to eight days, depending on the deposit method (in-person or ATM/mobile app) and deposit amount.
Here are the details:
- The first $100 must be made available to you immediately if you deposit the cheque in person, or within one business day if you used an ATM or mobile deposit.
- Amounts below $1,500 may be held for up to four business days if deposited in person or five days if deposited using any other method.
- Amounts above $1,500 may be held for up to seven business days if deposited in person or eight days if deposited using any other method.
Please note that there may be exceptions to the above hold limits in certain circumstances, such as if you’re depositing a foreign cheque, have opened your bank account within the last 90 days, or the cheque is stale-dated (written more than six months ago).
Cheque hold policy by bank
The hold limits above are guardrails put in place by the Government of Canada and are pretty standard across the board. Various financial institutions, however, have different speeds at which they remove holds on funds.
The table below shows the cheque hold policies of some of Canada’s biggest financial institutions:
| Bank | Cheque hold policy |
|---|---|
| RBC | * Four to five business days for Canadian cheques * Up to 15 days for cheques written from US accounts |
| Scotiabank | * Four business days for Canadian cheques * Nine days for USD cheques written from a Canadian bank * 19 days for cheques written from US accounts |
| BMO | * Four to eight business days for Canadian cheques * Up to 30 days for cheques written from US accounts |
| TD | * Four to six business days for Canadian cheques * Up to 15 days for cheques written from US accounts |
| CIBC | * Four to eight business days for Canadian cheques * Up to 30 days for foreign cheques, including US |
| EQ Bank | * Five or eight business days for Canadian cheques |
| Alterna Bank | * Three to eight business days for Canadian cheques * Up to 30 days for foreign cheques, including US |
| Tangerine | * Five business days for Canadian cheques * Up to 30 days for foreign cheques, including US |
| Simplii | * Five business days for Canadian cheques * Up to 30 days for foreign cheques, including US |
FAQ
Can the bank hold a government cheque in Canada?
Generally, most banks don’t put holds on government cheques, but they’re entitled to do so if they believe the cheque is counterfeit or the amount is over $1,750.
How long does RBC hold cheques?
RBC generally processes Canadian cheques within four to five business days, while cheques from US accounts may take up to 15 business days to clear.
How long does TD hold cheques?
TD generally processes Canadian cheques within four to six business days, while cheques from US accounts may take up to 15 business days.
Can you remove a hold on a cheque?
Generally, you can’t personally remove a hold on a cheque, but you can try contacting your bank to ask for a shorter holding period. Some financial institutions are willing to work with you or pre-authorize you for more funds.
Is there a way to speed up a hold on a cheque?
Once a hold has been placed, there’s really not anything you can do to speed up the process. Instead, your best bet is to deposit the cheque in person since they typically clear faster.
Can you tell me how to remove a hold on a cheque with Scotiabank?
Scotiabank doesn’t allow you to directly remove a hold on your cheque. Instead, they recommend reaching out to a customer service representative in person, over the phone, or via chat.
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