Personal Finance

HOLD on Cheques(TD bank)..Do your cheques get put on hold when you deposit?

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  • Sep 15th, 2015 9:58 pm
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Feb 16, 2007
393 posts
17 upvotes

HOLD on Cheques(TD bank)..Do your cheques get put on hold when you deposit?

Does anyone know how to get around the hold on cheques?\
With TD right now and they put a hold on any cheques I deposit , its ridiculous .......5 business days hold
in my experience TD seems to be the strictest on holds

How many here are able to access their funds right away?
45 replies
Newbie
Feb 17, 2009
68 posts
1 upvote
As you build up your tenure with TD I'm sure they'll be more lenient?

I get $600 cleared right away. I know it's nothing but it's not all on hold at least.
Deal Addict
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Dec 16, 2008
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Calgary
I never had a cheque held but I have been with TD Canada Trust since I opened a account with Canada Trust and it merged with TD. If you have a history of the same cheque for the same amount and from the same person deposited all the time and there was no charge backs, you could argue from that point.
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Aug 12, 2007
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Waterloo
it depends on your tenure and your credit rating with your bank. its more or less a scam on the part of the banks to hold on to that money and is a carryover from the olden days when the processing of Bank Cheques was manual.

the only way around that is to get certified cheques and deposit them at the counter, or a cheque from the same branch deposited at the counter.

The 600 release is actually not from the cheque but a bank credit which implies confidence in you( you can put in a iou from your loanshark into a banking machine and have that 600 available to you right away ) .
Deal Addict
May 25, 2009
1878 posts
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I've been TDCanadaTrust for around 15 years and when I deposit a cheque at the teller it almost never gets held. There were a few occassions when new cheques would get held specifically because they were coming from a new tenant from a credit union in Manitoba.

When I deposit a cheque into a bank machine it will usually clear for me if it is under $500 or so. When I deposit cheques between $500 and $1000 into a machine it will usually hold half the amount. I've never deposited a cheque larger than $1000 into a machine because I always take those to the teller.
Deal Addict
Nov 18, 2008
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I get access up to $2K instantly. You might want to ask if they can increase your limit as you may be approved for it, but it doesn't change unless you ask.
Deal Addict
Oct 14, 2004
1474 posts
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Toronto
I also get 2k per week instantly, after that, it is put on hold for a while (5-6 business days).
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Jul 31, 2011
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NORTH YORK
calgaryhhr wrote: I've been TDCanadaTrust for around 15 years and when I deposit a cheque at the teller it almost never gets held. There were a few occassions when new cheques would get held specifically because they were coming from a new tenant from a credit union in Manitoba.

When I deposit a cheque into a bank machine it will usually clear for me if it is under $500 or so. When I deposit cheques between $500 and $1000 into a machine it will usually hold half the amount. I've never deposited a cheque larger than $1000 into a machine because I always take those to the teller.

I had mine hold for 5 days, for amount of $250,000/-. When I asked they said its by procedure.
Deal Addict
Mar 2, 2005
2033 posts
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TDCT like any other bank does soft inquiries every month to make you certain pre-approved offers and also to determine your hold limits etc. I can deposit upto $2,500 without any hold. If the cheque amount happens to be greater, they only hold the balance. Having said that, I haven't deposited a cheque in years, so I can't say if its any different (I doubt it is).
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Dec 16, 2008
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Supahhh wrote: it depends on your tenure and your credit rating with your bank. its more or less a scam on the part of the banks to hold on to that money and is a carryover from the olden days when the processing of Bank Cheques was manual.

How is it a scam with the banks? Cheques can still come back with insufficent funds. They put holds to protect themselves.
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Oct 12, 2005
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Toronto
All banks tend to more or less do the same.

Speaking from experience with RBC, every client is assigned an Unverified Release Limit (which guides the daily release of ABM deposits) and a Cheque Cashing Limit which is supposed to guide whether a hold (full or partial) is placed at the teller. Both limits take into account client tenure, current standing (other funds on which the bank has recourse should something happen) and credit history. The teller has some discretion depending on the client's current standing.

Most cheques deposited will not be sent for clearing until the evening, and then it can still take a few days for the other side to reject (especially if the issuing institution goes through a Pay/No-Pay process). Even if a cheque does clear it can still be returned months later if the issuer puts in a claim (eg. fraudulent item or fraudulent signature).

The tough part is that because of fraud, even certified cheques and drafts are now being held (Cases where a real draft and three fake copies of the same draft circulate. Four different banks negotiating the drafts call and verify that said draft was issued by the issuing bank and they each get a 'Yes' because draft does indeed exist. It is not until the drafts clear in the evening that three of them bounce. The issuing bank verifies that the draft exists but has no responsibility to figure out for the negotiating bank if the draft they have in hand is real or fake).

How to avoid the hold:
-Keep funds in the account to establish a good standing history
-Have your Payroll, Tax or Pension direct deposited where you can.
-Take an Email Money Transfer over a Cheque for one-time payments.
-Become aware of your ABM release limits and plan with them in mind.

I find TD to be the most lenient with holds, followed by CIBC, and then RBC who is actually a little tougher.
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Feb 16, 2007
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emoci wrote: All banks tend to more or less do the same.


The tough part is that because of fraud, even certified cheques and drafts are now being held r.

+1 yea thats crazy!........let me try and get them to raise my hold limit. i think the cashier was just on a powertrip as she put a hold on my 50$ mbna cheque too
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Aug 12, 2007
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Asoul wrote: How is it a scam with the banks? Cheques can still come back with insufficent funds. They put holds to protect themselves.

because it does not take 5 days ( business days? ) to process ( and verify that the amount is available ) the cheque anymore.

Even if the cheque is from the same branch and is deposited into a teller machine its held. On the other hand the same cheque deposited OTC will not get withheld.
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Jun 23, 2009
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YUL
WTH? How old are you people? Do you regularly deal with an account manager? I get 2K cleared automatically, the bank manager can do more at their discretion. (I bank with RBC and my salary etc are all paid into my overseas account).
.
Deal Addict
Oct 9, 2005
1884 posts
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I find TD to be the worst at holds, especially with ATMs where apparently holds are released only on Thursdays. Pretty stupid. However I've also had a cheque drawn on TD from another branch deposited with no hold after the teller was able to verify the account balance and signatures through her computer.
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Nov 28, 2010
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One of the reasons for your cheque not to be hold is that "bank" written on the cheque has to be the same as yours (where you are deposting it)..that is how I see it when I deposit. But TD is wack, they tend to hold anything.

I have no problem with CIBC :)
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Mar 24, 2005
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Toronto
It's all about standing reputation. Have good credit and responsible balances and the higher your limit increases for hold cheques. Cashing a TD cheque with TD almost should never be on hold unless it is a business cheque, because like a poster said above. You can look in the computer to see if there are sufficient funds in the account. It's to protect the bank, the payee, and the account it's drawn against. Holding funds might be an inconvenience but in the grand scheme of things, it's there to protect everyone involved. Bank doesn't have to reimburse from their own overage accounts, payee doesn't have the cheque bounced and withdrawn from their account, which can possibly put them in overdraft if they don't know where there's a nice charge for that. As well as the drawer, where they get hit with a $42.50 NSF fee.

If you think it's stupid, it's there to protect everyone involved and it's actually in the best interest for everyone involved. You could argue why do people have insurance, when they're perfectly healthy.
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May 17, 2006
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Just speak to the branch... my cheques below 20k are usually avail immediately, as someone suggested its probably tenure based and also on the amount you transfer back n forth.
Same with PCF and other banks.
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Sep 18, 2008
232 posts
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Toronto
TD Bank is crippling my small business by holding my cheques while charging me fees. You too?

I’m trying to run a small business in Canada, and I'm getting absolutely no help from TD Bank.

My firm employs two people who would no doubt be unemployed, or under employed, if it wasn’t for my start-up. And like most small businesses, I struggle to pay them on time, and to find a small profit at the end of the month on which I myself can live.

TD Bank policies prevent me from succeeding. Their 'cheque hold' policies are designed to protect and grow their enormous profits, at the expense of my small business. The milk of human kindness is NOT present anywhere in this monied institution.

On Friday April 27th 2012, I stood at the teller and deposited a cheque for $8500 into my business account (for which I pay almost $24 month in fees) at the TD Bank at 25 Mill Street. And they put it on hold. HOWEVER I explained politely that I need that money to start a project for my client, and the project is already overdue. But I have learned, as I'm sure all TD customers eventually come to learn, you can expect NO help from this bank.

The teller and then the bank manager explained how they must hold my funds, paralyzing my business, for five days in order to guarantee the funds... yet I've brought the same cheque (the same amount from the same company) to the same bank on two occasions prior to this one. They held those cheques too. But there is NO reason to hold them ! The cheques are good. There is an established history of the deposits with two previous precedents. And furthermore in the entire time I have banked here, there has NEVER been any problems with any of my deposits. But of course they're not worried about their own financial stability, its assured. And my account is small potatoes. This action is more about making sure I stay financially unstable, and not just me, but all Canadians in my situation, for their profits to increase.

You think I'm overreacting? I'm not. I believe its systemic. This is another reason why people are Occupying the streets. I honestly believe TD Bank has set in place a policy deliberately designed to harm small business and make them pay more in fees for being 'risky'.

Think about it - the only reason to hold the money is so that I cannot proceed with my business, and so that I will incur more debt, and ultimately bounce cheques and be subject to their $45 NSF fees. They can sit back and look at the data and see the growing profits from these policies as they affect small business across Canada, without burdening their conscious about the crippling effects these policies have on the actual day-to-day operations. The effect is ruinous.

In the coming week, with a five day hold on all my funds, my business will incur great difficulties. I have the onerous task of calling suppliers and merchants and asking them to wait until the following Monday to cash their cheques. Should I miss one, then I will incur NSFs fees . And I will be deemed a risk again ,and that’s perfect for the bank - they can charge me higher fees going forward, in addition to the NSF fees they will collect.

TD Bank is certainly NOT a friend of my small business.

TD Bank Cheque Hold Hurts My (All) Small Business in Canada
Deal Addict
Oct 30, 2008
2120 posts
59 upvotes
Toronto
shapeshifter: cheque holds are standard with all banks. If the bank decides to release the funds to you until the cheque clears, it is a credit decision. If you have an established relationship with your bank and your credit is good, most banks would allow an instant release up to a certain amount until the cheque clears. For most consumers who qualify, the limit is usually around $500. Exceptions can be made by the teller or branch manager in some cases. For example, if you received a company cheque and that company is a well-known entity like a big corporation, the teller and/or manager may be able to make an exception and cash the entire amount. But this is purely on a case-by-case basis. Government cheques are not subject to a hold. If you have a cheque hold on your account, make sure you deposit government cheques (i.e. income tax refund) through the teller because any deposit done through the machine will be held.

Arob: what you need is a business LOC. If you don't have one, you can't expect the bank to cash a $10,000 cheque carte blanche. If this is a problem for you, perhaps you should ask your clients to provide you with a certified cheque.
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