Personal Finance

why CIBC holds deposited funds

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  • Jan 27th, 2024 12:17 am
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Deal Addict
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Mar 3, 2005
1087 posts
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Mississauga
AllWheelDrift wrote: It doesn't? I'm pretty sure it does. I don't think you can use the money for anything, not a cheque, not a bill payment, not a withdrawl. If the cheque clears before the hold is dropped it will probably result in the cheque bouncing and an NSF charge.
Exactly - if you write a cheque and the funds are still held; the check will bounce!
Deal Addict
Jan 2, 2015
1633 posts
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Toronto, ON
Responding to old threads is kind of fun.

Cheques should not be used by the financially unsophisticated. You should neither write or deposit cheques. (Get direct deposit if at all possible!) If you don't think banks should hold cheques, then you are not financially sophisticated enough to be using cheques.

By the way, some banks are now holding certified cheques. They should be guaranteed, so why hold them? Because fraudsters know how to write fake certified cheques. The bank still has to "check" if the cheque is good, and won't know for some time. As a result, the main purpose of certified cheques (a trusted document that gives you instant access to your money) is being eroded.
Deal Expert
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Apr 16, 2002
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Toronto
The new CIBC machines (other banks too) no longer use envelopes for deposits. They count/scan whatever gets deposited. Cash deposit funds are available instantly now! Still possible hold on cheques though depending on your account .

Sadly this means no more free envelopes for my letters...
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Deal Addict
Feb 29, 2012
2654 posts
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Richmond
Obviously the banking system is fully capable of verifying funds electronically within seconds, even internationally, for everything except cash-in-an-envelope deposits at ATMs and night depositories. This is what customers are impatiently expecting in all cases, and they should be demanding this.

The holdup is really two things:
- Banks are in an uncompetitive protected market segment that doesn't motivate them strongly to improve outdated computer and communication systems until they have to
- A complicated forest of regulations and agreements originally created back in the days of snail mail are still in place, allowing transactions to be challenged and clawed back days or weeks after they were completed

Eventually this problem will go away, but don't hold your breath.
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Feb 25, 2014
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I got my limits raised after 2 years from $500 to $1000
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Newbie
Jan 25, 2024
1 posts
I just put 2 separate cheques in for 100 each I was able to get the one but the other was held? I thought your allowed 100$ from each cheque
Deal Addict
Jul 8, 2009
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Toronto
Ronnieteresa wrote: I just put 2 separate cheques in for 100 each I was able to get the one but the other was held? I thought your allowed 100$ from each cheque
You think correctly. There must be some other reason for why the cheque is being entirely held. You can call and ask.

That said, I just had a weird experience with Simplii locking my chequing account following a cheque deposit and the "manager" was unable to tell me why, though she was able to release it. I still don't know the reason why - in fact the manager was asking me if I had ever had this happen before (so apparently she couldn't see that information?) You might not get any better answer from CIBC.
Deal Fanatic
Nov 22, 2015
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Ronnieteresa wrote: I just put 2 separate cheques in for 100 each I was able to get the one but the other was held? I thought your allowed 100$ from each cheque
Two separate transactions? Or did you deposit both cheques at the same time?

Pretty sure the hold amount is per transaction
Deal Addict
Jul 8, 2009
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KanataKG wrote: Two separate transactions? Or did you deposit both cheques at the same time?

Pretty sure the hold amount is per transaction
Nope.
https://laws-lois.justice.gc.ca/eng/acts/b-1.01/FullText.html#s-627.22 wrote: 627.22 An institution shall make the prescribed amount of funds deposited or, if there is no prescribed amount, the first $100 of all funds deposited by a cheque or other instrument into a retail deposit account available for withdrawal
(a) immediately, if the deposit is made in person with an employee at one of the institution’s branches or points of service; or
(b) on the business day following the day of the deposit, if the deposit is made in any other manner.
Deal Fanatic
Nov 22, 2015
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Meitnerium wrote: Nope.
Well there you go.

They probably deposited at an ATM and the other $100 won't be available until the next business day

That's what happens when you deposit more than one cheque, unless you do it in person with an employee

Otherwise, anyone can open a brand new account, deposit a stack of fake cheques at the machine and withdraw unlimited money

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