Personal Finance

Holds: Be aware of how long your bank holds your funds!

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  • Feb 13th, 2014 10:58 am
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB

Holds: Be aware of how long your bank holds your funds!

Implicity.ca is great for interest rates (1.9% calculated daily) with unlimited ATM access including withdrawls.
But they aren't so great in the hold department. 10 days. Even if you deposit cash! Unbelievable.
Imagine you're moving money around (say several hundred thousand) and you throw it into a bank account. Then you see a good investment and need the money moved there immediately or you lose that opportunity. "Oh sorry sir, you can't have your money for 9 more days." Fail.

Ask your high interest bank for its rules on holds. You'd think we're living in the 1800's the way most banks operate. They've got to devise a faster way of authenticating your fund transfers.
46 replies
Member
Sep 24, 2012
347 posts
30 upvotes
MISSISSAUGA
redflagguy2u wrote: Implicity.ca is great for interest rates, ATM access and unlimited withdrawls.
But they aren't so great in the hold department. 10 days. Even if you deposit cash! Unbelievable.
Imagine you're moving money around (say several hundred thousand) and you throw it into a bank account. Then you see a good investment and need the money moved there immediately or you lose that opportunity. "Oh sorry sir, you can't have your money for 9 more days." Fail.

Ask your bank for its rules on holds. You'd think we're living in the 1800's the way most banks operate. They've got to devise a faster way of authenticating your fund transfers.
I believe that is for new users only and after number of years it gets reduced to 5 days.
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2992 upvotes
I'm with BMO, have been for a long time, and have absolutely no holds at all. Depends on your banking relationship.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
Nobody in their right mind will wait for years to get that reduced. 5 days is way too long anyway. And they don't mention that on their website anyway.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
BMO is not even in consideration for a high interest savings account. At RFD, we're looking for the best possible return on our money. I don't think many of us use the big banks for much of our money. They give nothing in return. I didn't mention that in the original post but I thought it might be obvious. I just added the relevant info now.
Newbie
May 17, 2013
36 posts
3 upvotes
Scarborough
Why would they hold cash for 10 days?
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2992 upvotes
redflagguy2u wrote: BMO is not even in consideration for a high interest savings account. At RFD, we're looking for the best possible return on our money. I don't think many of us use the big banks for much of our money. They give nothing in return. I didn't mention that in the original post but I thought it might be obvious. I just added the relevant info now.
So here's where it is relevant. I just deposited a mid to large five figure cheque into my BMO account and, as there is no such thing as "high" interest with them (or anybody else for that matter), immediately transferred the money out to a linked account that does have higher interest options. Because I have no holds on my account, I could do that same day and not have to wait for any hold period to expire.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
Who knows? Its rather incredible. Maybe they hate cash!
What they don't grasp is that people with money usually invest their money. And that means pouncing on opportunities when available. Time is of the essence.
Perhaps one of the reasons they implement the 10 day hold is they want to ensure a more stable, consistent balance on the account. It must be hard to be a business that lends out money and you have no idea how long funds are going to be in customer's accounts. But then again, we are in a world of fractional banking. Others can perhaps explain this to us better than I.

The point is to be aware of this when choosing your deposit institution. Once in a while it can really bite you if you're careless. If you have multiple accounts you would put it in the other account with fast access and sacrifice the interest rate if needed.
Deal Addict
User avatar
Aug 1, 2009
1291 posts
90 upvotes
TD doesn't hold my deposits also. Called TD and ask them about how much I can withdraw after I deposit a cheque and they told me you can withdraw the whole amount of the cheque. Last time I tried depositing a $5,000 cheque and was able to withdraw the whole amount.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
Now remember that if you have had $10,000 in your account for weeks and you deposit $1000, of course you can withdraw up to $10,000 right away.

To Conquistador: Sure you can deposit to a major (no interest) bank and get access to it. But what's the point? You might as well leave it in the original place (say your trading account that gets no interest). What matters is getting it into an account that gives you the highest interest possible (about 1.9% right now) AND access to it as soon as possible.
Member
Sep 24, 2012
347 posts
30 upvotes
MISSISSAUGA
I wouldn't really care about hold time as I put my money there to earn some interest and pay bills. Not to take it out asap. I have other accounts for that.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
MehtabSingh, what bank has a short hold with good interest? That's the point of this thread I thought. That's why I mentioned the 1.9% interest. No mainstream bank is going to come close to that.
Deal Addict
User avatar
Oct 16, 2008
4731 posts
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Nothing to "beware" of as most banks always tell you all of this information upfront before you even sign the dotted line on the deposit agreement.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
I didn't say beware. I said be aware. Many people have no clue until their funds are frozen for way too long. Of course they'll tell you. Most of us just forget.
Member
Jun 10, 2010
336 posts
111 upvotes
redflagguy2u wrote: MehtabSingh, what bank has a short hold with good interest? That's the point of this thread I thought. That's why I mentioned the 1.9% interest. No mainstream bank is going to come close to that.
If you're going to be taking out your money within a day or two, why do you care about the interest rate? If you're going to be leaving it in the account long enough that the interest rate is relevant, why do you care about hold times? You really need to understand that different products are useful for different things.
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
My post if for people that care about hold times (maybe they're moving their money around and don't want it held up unnecessarily) AND want the highest interest possible. Because you can get both if you shop around enough or close to ideal.
Deal Expert
User avatar
Dec 11, 2005
20136 posts
2964 upvotes
Conquistador wrote: I'm with BMO, have been for a long time, and have absolutely no holds at all. Depends on your banking relationship.
Same here. I have yet to figure out what my hold is at TD, if I have any. The other day I deposited a US cheque for 12K, no holds at all. Of course, it was on a big US bank not a personal cheque, that likely has something to do with it.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Sr. Member
Jun 27, 2012
913 posts
100 upvotes
Winnipeg, MB
Brunes, when you deposited that 12k cheque, did you have any other money in the account?
Realize that at TD the interest rate is almost zero.
This post was to try to find both a decent interest rate and minimal hold times.
Sr. Member
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Mar 13, 2012
865 posts
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Planet Earth
redflagguy2u wrote: Nobody in their right mind will wait for years to get that reduced. 5 days is way too long anyway. And they don't mention that on their website anyway.
I call BS on you for not reading the FAQ... It clearly states:
Are there holds placed on deposits?

Yes. There is a ten-day hold placed on all deposits.
https://www.implicity.ca/AboutUs/FAQ/
If at first you don't succeed, destroy all evidence that you even tried.
Sr. Member
Feb 5, 2013
592 posts
109 upvotes
Every bank and account has a hold policy. Usually it is 5 business days which means, in practice, 7 days at least, more with statutory holidays.

That said, almost every account has a discretionary exemption, and that can be unlimited. An exemption does not mean that the bank can't place a hold in their discretion, though, if they sour to the account's holder, suspect a fraudulent deposit, receive new information, etc.

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