How long can a bank hold my cheque in Canada?
You deposited a cheque and the money is "pending". Rent is due Friday. Here is what the federal rules say your bank can and cannot do, and how to plan around a hold.
The maximum hold times
The Financial Consumer Agency of Canada (FCAC) lists the maximum holds for Canadian-dollar cheques drawn on Canadian institutions. These limits apply to federally regulated institutions such as banks. Credit unions and caisses populaires are regulated provincially or territorially, so ask them for their policy.
| Cheque amount | In person | ATM, mobile or other |
|---|---|---|
| $1,500 or less | 4 business days | 5 business days |
| Over $1,500 | 7 business days | 8 business days |
These are maximums. Many cheques clear sooner, and your bank may release the funds earlier at its own discretion.
The first $100 rule
Institutions must make the first $100 of your cheque deposits available right away. If the cheque is $100 or less, the full amount is available. Timing depends on how you deposit: immediately with a teller, or the business day after for ATM and mobile deposits.
A worked example (illustrative)
| Step | Number |
|---|---|
| Cheque you deposit in person | $2,000 |
| Available right away (first $100) | $100 |
| Held until the maximum hold ends | $2,000 - $100 = $1,900 |
| Maximum hold (over $1,500, in person) | 7 business days |
| Same cheque deposited by mobile | 8 business days |
So a $2,000 cheque deposited on a Monday could leave $1,900 locked for up to 7 business days. Weekends do not count as business days, so check how your bank counts them.
When the normal limits do not apply
FCAC lists exceptions, including accounts open fewer than 90 days, cheques endorsed more than once, cheques deposited six months or more after their date, foreign-currency cheques, cheques from foreign bank branches, suspected fraud, and damaged cheques or ones without magnetic ink character recognition. Foreign cheques are often held about 30 days.
Why a hold is a loan risk
If your bank releases money before the cheque clears, it is extending you credit. If the cheque bounces, you may have to repay it, and an overdraft could cost you more. Spending held money early is how people end up with the fees in our NSF fee guide.
What to do
- Find your bank's written cheque hold policy. Federally regulated institutions must give you one when you open an account.
- Do not spend money you do not yet have. Plan bills around the maximum hold date, not the first day it shows up. A small emergency fund helps.
- Ask for written notice if your bank refuses to honour the standard limits. Then you can use its complaints process.
- For faster options, see Interac e-Transfer limits and compare accounts in our hidden bank fees guide.
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