Quick answer: At a federally regulated bank or credit union, the first $100 of an eligible cheque deposit is available immediately when you deposit with a teller, or on the next business day when you use an ATM or mobile deposit. The usual maximum hold for the rest is four to eight business days after the deposit day, depending on the amount and method. These are the current rules described by the Financial Consumer Agency of Canada (FCAC).
What this means: You may be able to use the first $100 before the full cheque amount is available. A hold can be longer when an exception applies, and funds made available before a cheque clears can still be withdrawn if the cheque is returned unpaid.
What to do next: Check the deposit date, amount, method and your institution’s written cheque-hold policy. If an eligible deposit remains on hold beyond the usual limit, ask the institution to explain which rule or exception it is applying.
Standard cheque availability rules
Federal cheque-hold rules set a maximum schedule for federally regulated banks and credit unions. These rules apply to eligible machine-readable paper cheques drawn on a Canadian branch and denominated in Canadian dollars. The “business day” count starts the day after you deposit the cheque.
For the first $100 of the cheque amount, funds are available immediately if you deposit at a teller. If you deposit via ATM or mobile deposit, the first $100 is available the next business day. For cheques of $100 or less, the entire amount is available immediately at a teller or the next business day via ATM/mobile.
Availability schedule by cheque amount
These are the usual latest availability dates for eligible cheques. Count business days from the day after deposit:
- $100 or less: The full amount is available immediately at a teller or by the next business day after an ATM or mobile deposit.
- More than $100, up to $1,500: The amount above the first $100 must be available within four business days after a teller deposit or five business days after an ATM or mobile deposit.
- More than $1,500: The amount above the first $100 must be available within seven business days after a teller deposit or eight business days after an ATM or mobile deposit.
Source: FCAC: Cashing cheques
When the standard rules do not apply
Banks may delay availability beyond the standard schedule if specific exceptions apply. The FCAC lists several common reasons why a bank might hold a cheque longer:
- Your account has been open for less than 90 days.
- The cheque is deposited six months or more after its date.
- The cheque is drawn on a foreign bank or branch, or is in a foreign currency.
- The cheque has been endorsed more than once.
- The cheque is damaged, altered, or not machine-readable.
- The bank has a reasonable suspicion of fraud.
Provincially or territorially regulated credit unions may have different hold policies. Federal credit unions are covered by the federal rules. FCAC also identifies an exception to the first-$100 access rule for eligible enterprises, including some small and medium-sized businesses. Ask your institution about its policy if you are depositing to a business account.
What if the cheque is returned?
Even after funds are made available, the bank can reverse the deposit if the cheque is dishonoured (returned unpaid) by the issuing bank. This can happen if the issuer does not have enough funds in their account. If this occurs, the bank will typically debit your account for the amount of the cheque. If your account balance drops below zero, you may incur overdraft fees, depending on your account terms. It is important to monitor your account balance after depositing a cheque, especially if you plan to spend the funds immediately.
Worked example: How to calculate availability
Let’s look at a hypothetical scenario to illustrate how the business-day count works. Suppose you deposit a $2,000 cheque at a bank teller on a Tuesday.
- Day 0 (Tuesday): You deposit the cheque. The first $100 is available immediately. You can use this $100 right away.
- Day 1 (Wednesday): This is the first business day after deposit.
- Day 2 (Thursday): Second business day.
- Day 3 (Friday): Third business day.
- Day 4 (Monday): Fourth business day. (Weekends are not business days).
- Day 5 (Tuesday): Fifth business day.
- Day 6 (Wednesday): Sixth business day.
- Day 7 (Thursday): Seventh business day.
Since the cheque is over $1,500 and deposited at a teller, the remaining $1,900 must be available by the seventh business day, which is the following Thursday. If you had deposited the same cheque via mobile deposit, the remaining funds must be available by the eighth business day, the following Friday. The bank may release them sooner. This example assumes no holidays and no exceptions apply to your account.
What to do if your bank delays funds
If your bank refuses to make funds available according to the standard schedule, you have the right to ask for an explanation. Here are the steps you can take:
- Ask for a written notice: If the bank refuses to release the maximum available amount or the first $100, request a written notice explaining why. This helps you understand if an exception is being applied.
- Check your bank’s policy: Banks are required to disclose their cheque availability policies. Review your account agreement or ask your branch manager for a copy of their specific policy.
- File a complaint with the bank: If you believe the bank is not following its policy or the FCAC guidelines, start by filing a complaint directly with the bank. They are required to provide a detailed written response within 56 calendar days.
- Contact the Ombudsman for Banking Services and Investments (OBSI): If you are not satisfied with the bank’s response, or if they do not respond within 56 days, you can escalate your complaint to OBSI. OBSI is an independent dispute resolution service. Note that the FCAC guides consumers but does not resolve individual complaints.
Source: FCAC: File a complaint with a financial institution
Frequently asked questions
- Can I use the first $100 immediately if I deposit via mobile?
- No. If you deposit via ATM or mobile, the first $100 is available the next business day. Immediate availability only applies to teller deposits.
- Do these rules apply to credit unions?
- The federal rules apply to federal credit unions. A provincially or territorially regulated credit union may use a different policy, so ask that institution about its cheque-hold terms.
- What if the cheque is for a foreign currency?
- A foreign-currency cheque is outside the usual maximum-hold schedule. Ask the institution for its policy and the hold it will apply to that deposit.
- Is there a fee if the cheque is reversed?
- The FCAC does not specify a standard reversal fee. Fees depend on your bank’s specific account terms. Check your account agreement for details on returned item fees.
Rules and process basis
The hold periods and first-$100 access rule above come from FCAC’s current guidance for federally regulated institutions and eligible cheques. The exceptions matter: the standard schedule cannot establish the release date for every cheque. FCAC’s complaint route starts with the bank and allows escalation to the Ombudsman for Banking Services and Investments (OBSI) after a detailed closed-file response or once more than 56 calendar days have passed. A provincial credit union may have a different complaint process.