Personal Finance

Banks with fewer holds on cheque deposits

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  • Jul 21st, 2020 5:17 am
[OP]
Sr. Member
Dec 26, 2015
579 posts
350 upvotes
Manitoba

Banks with fewer holds on cheque deposits

So I'm currently using a credit union, and while most things are great otherwise, the annoying feature is absurdly long holds with cheque deposits (even cash via ATM). Funds are always stopped for teh 5 business days. I remember in the past with Scotia I didn't have any holds on most cheques I deposited and same with Tangerine (however they have them now).

Which banks tend to do less holds or are more likely to remove them with a relationship? Its not super frequent, but frequent enough that its annoying to deal with
23 replies
Deal Addict
Jan 2, 2015
1633 posts
638 upvotes
Toronto, ON
It's not really about the particular bank/credit union, but about you, the customer. Furthermore, no bank actually offers "no holds". If you went to Scotiabank with a $1 million cheque, they would put a hold on it. Your previous bank offered an uncleared release limit higher than the value of the cheques you deposit, so you never noticed any holds.

If you have been with the credit union for over six months, ask for an account review. That should increase your uncleared release limit (and let you take more cash out of an ATM, if you are so inclined).
How much money do you have deposited with them? If you have a decent savings account, larger than the cheques you regularly deposit, then it's not much of a risk for the bank. If the cheque bounces, they just take it out of your savings. A regular direct deposit also helps with this (since they feel new money will be coming in predictably, so they can take the risk).
I assume your credit rating has stayed about the same, but if it's low, that could be a factor.

In addition to all this... you have an account with Tangerine. They are free, and they aren't putting (noticeable) holds on your cheques. So why not just use Tangerine?
Jr. Member
Feb 6, 2019
177 posts
262 upvotes
Veeshmack wrote: So I'm currently using a credit union, and while most things are great otherwise, the annoying feature is absurdly long holds with cheque deposits (even cash via ATM). Funds are always stopped for teh 5 business days. I remember in the past with Scotia I didn't have any holds on most cheques I deposited and same with Tangerine (however they have them now).

Which banks tend to do less holds or are more likely to remove them with a relationship? Its not super frequent, but frequent enough that its annoying to deal with
Simplii allows me access up to $1000 for each deposit - maybe check with them?
Deal Expert
Aug 22, 2011
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rychicken wrote: Simplii allows me access up to $1000 for each deposit - maybe check with them?
+1 for Simplii allowing immediate access to the first $1000 of a deposit.
Deal Addict
Oct 27, 2012
2767 posts
4516 upvotes
Toronto
It’s set by your individual profile with each bank.

I get the first $5K from my deposits with Scotia. You can check what that limit is through online banking. They just increased it through the years with regular account activity (started at $200 when I opened the account with them in 2012).

Other limits I have are $2K weekly with TD, $3K with CIBC, $2.5K with RBC and $300 with BMO (LOL). Motive is the best with $10K of each deposit at the ATM not held, but my online transfers from other banks are still held the full week.
Deal Fanatic
Jan 19, 2017
7199 posts
4211 upvotes
try apply for a LOC(line of credit), then deposit your cheque into the LOC and move the same amt from LOC to saving/chequing acct.
Newbie
Jul 16, 2020
21 posts
21 upvotes
It's not the bank.
It's your credit and history with the bank.
Member
Oct 11, 2013
217 posts
61 upvotes
Almost American
$5k in deposits hold free for me (per week)
Deal Addict
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Jan 16, 2007
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ozzie16 wrote: It’s set by your individual profile with each bank.

I get the first $5K from my deposits with Scotia. You can check what that limit is through online banking. They just increased it through the years with regular account activity (started at $200 when I opened the account with them in 2012).

Other limits I have are $2K weekly with TD, $3K with CIBC, $2.5K with RBC and $300 with BMO (LOL). Motive is the best with $10K of each deposit at the ATM not held, but my online transfers from other banks are still held the full week.
How did you manage to acquire such a release limit with Motive?
🏦 Banking: Alterna Bank (2.0%, No fees), Motive Financial (3%, No fees)
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Deal Addict
May 1, 2018
1662 posts
1157 upvotes
Vancouver
Tangerine provides $1000 accessible funds for me as well. The rest are on hold for the 5 business days. Like another user said, it's based on your credit history/score and your history with the bank.
Deal Addict
Nov 8, 2017
1556 posts
885 upvotes
BMO gives me 25k release limit
I've had loans, and LOC with them
Been with them ten years
Rbc is still 2500
Deal Addict
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May 19, 2005
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It depend son your relationship with the banks. I’ve had my bank accounts with TD and RBC before I was a teenager and by the time I got my first job they were already giving me $25K no holds. I made then that that at the time. i also used this to leverage for the same no holds when I opened an account at another bank.
Some people just don't get that online forum posts shouldn't always be taken seriously.
Deal Addict
Oct 27, 2012
2767 posts
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Toronto
hvwkzq wrote: It is not their official policy, but RBC's system removes all holds the next business day unless the deposit looks unusual.
Experience is the same here. I did once make a withdrawal of the held funds after the day passed and they froze all of my accounts within a few hours. Was a chore to get them to unlock the accounts but they did after 2 weeks.
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May 8, 2009
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Going to the Moon
It depends on one's DEPOSIT LIMITS, which will vary based on account holder (and FI).
  1. Simplii and Tang are great since they're no fee banking that allow ramping up deposit limits to $5k over time. Simplii even starts most people at $250-1k, so it's not bad
  2. Big banks usually grant higher deposit limits since they generally have higher risk tolerance
  3. The uLOC/PLOC is a great hack. Deposit a cheque to uLOC, and even without deposit limits, you can withdraw up to your CL immediately. If you don't withdraw above the amount deposited, you'll incur no interest
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Deal Addict
Oct 27, 2012
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joshnet wrote: How did you manage to acquire such a release limit with Motive?
No idea tbh. I only noticed when I was depositing cheques at the ATM that anything under 10K per deposit was available immediately. And another 10K was available from a further deposit on the same day. Anything above that, 7 business day hold it seems.

But they did impose a manual hold once when I made a number of ATM deposits to the account, and they held the entire amount.
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Jan 16, 2007
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Very interesting! Have you verified that lately?

Awhile ago, over a year now I think, I noticed that their hold policy changed/was more enforced for (at least) me. Previously money pulls in would get released in 2-3 days for me, but then they started sticking to a hold of 5 days.
🏦 Banking: Alterna Bank (2.0%, No fees), Motive Financial (3%, No fees)
📈 Investing: National Bank Direct Brokerage
💳 Spending: Scotia Amex Gold (5 pts/dining, 1 pts/rest), Scotia Scene Visa (1 pts)
📱 Mobile: Eastlink 10GB Rollover ($45/mth)
Deal Addict
Oct 27, 2012
2767 posts
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Toronto
joshnet wrote: Very interesting! Have you verified that lately?

Awhile ago, over a year now I think, I noticed that their hold policy changed/was more enforced for (at least) me. Previously money pulls in would get released in 2-3 days for me, but then they started sticking to a hold of 5 days.
Indeed I have. I deposited a 50K cheque two weeks ago. Had access to 10K immediately, the rest was held for 7 business days. And I have had the same experience with pulls, used to be 2-3 days and now 5 business days.
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Jan 16, 2007
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Good to know! Thanks for the information.
🏦 Banking: Alterna Bank (2.0%, No fees), Motive Financial (3%, No fees)
📈 Investing: National Bank Direct Brokerage
💳 Spending: Scotia Amex Gold (5 pts/dining, 1 pts/rest), Scotia Scene Visa (1 pts)
📱 Mobile: Eastlink 10GB Rollover ($45/mth)
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Jul 16, 2019
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Do deposit limits ever apply to deposits from places like PayPal or Transferwise? I don't think I've ever had holds on deposits made from those two FIs.
titaniumtux wrote: The uLOC/PLOC is a great hack. Deposit a cheque to uLOC, and even without deposit limits, you can withdraw up to your CL immediately. If you don't withdraw above the amount deposited, you'll incur no interest
Do lines of credit never put holds on deposits? Or are there exceptions?

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