How Long Can a Canadian Bank Hold a Cheque? The Rules, the Exceptions and What to Do
You deposit a cheque, the app says “received,” and then the money sits there. Federal rules cap how long a bank can make you wait, but the cap has exceptions, and the money being available is not the same thing as the cheque being good.
- Rules checked October 16, 2026
- By Paul H
- 9 min read
On this page
- The short answer
- Maximum cheque hold periods at Canadian banks
- A worked example: a $2,000 cheque deposited by app on a Friday
- When the normal limits do not apply
- “Available” does not mean “cleared”
- A simple rule for large or unexpected cheques
- Why banks hold cheques at all
- Ways to get your money sooner
- What to do if your bank holds a cheque too long
- Frequently asked questions
This guide walks through the actual limits in the federal Access to Funds Regulations, the cases where they do not apply, and what to do if your bank holds a cheque longer than it should.
The short answer
A federally regulated bank can hold a Canadian-dollar cheque for no more than 4 business days if it is $1,500 or less and you deposit it with a teller, or 5 business days if you use an ATM or the mobile app. For cheques over $1,500 the limits are 7 and 8 business days. In every case, the first $100 must be available immediately for an in-person deposit, or on the next business day for other deposits.
Those limits come from the federal Access to Funds Regulations and are explained by the Financial Consumer Agency of Canada (FCAC). Many banks release funds faster than the maximum. The rules only set the longest they can make you wait.
Maximum cheque hold periods at Canadian banks
| Cheque amount | Deposited with a teller | ATM, mobile app or other |
|---|---|---|
| $1,500 or less | 4 business days | 5 business days |
| Over $1,500 | 7 business days | 8 business days |
| First $100 of the day’s cheque deposits | Right away | Next business day |
Source: Access to Funds Regulations, sections 3 and 4, current to September 30, 2026. Business days exclude Saturdays and holidays (Sundays count as holidays). Limits are counted from the day after the deposit.
If the cheque is $100 or less, the whole amount falls under the $100 rule, so it should be available right away at a branch or the next business day by app.
A worked example: a $2,000 cheque deposited by app on a Friday
Say you deposit a $2,000 Canadian cheque through your bank’s mobile app on Friday, October 16, 2026. It is over $1,500 and was not handed to an employee, so the 8-business-day limit applies. Here is how the days fall:
Hypothetical example. The weekend of October 24 and 25 does not count. A statutory holiday inside the window would push the last day out by one.
So $100 should be usable on Monday, October 19, and the remaining $1,900 by Wednesday, October 28, at the latest. If the same cheque had been for $1,400 and handed to a teller, the whole amount would be due by Thursday, October 22, with $100 available on the spot.
When the normal limits do not apply
The regulations list specific situations where both the maximum hold and the first-$100 rule can be set aside. This part is easy to miss: the FCAC’s summary page mentions new accounts under the hold limits, but the regulation itself (section 6) applies the exceptions to the $100 rule as well.
- Your account has been open for less than 90 days. This catches many newcomers and students, who often deposit their first large cheques in the first few weeks.
- The bank has reasonable grounds to believe the deposit is illegal or fraudulent.
- The cheque has been endorsed more than once, for example a cheque signed over to you by the original payee.
- The cheque is six months old or more when you deposit it.
The limits also only cover cheques that meet basic conditions. The cheque has to be in Canadian dollars, drawn on a bank branch in Canada, paper-based (a mobile deposit of a paper cheque counts), printed with the magnetic ink line at the bottom, and readable by the clearing system. A damaged or foreign cheque falls outside the rules.
US and other foreign cheques
A cheque drawn on a bank outside Canada, including a US-dollar cheque from a US bank, is not covered by the 4 to 8 day limits. The FCAC says institutions often hold these for 30 days, and if the cheque does not clear, the money is taken back out of your account. Some banks will ask for a bank draft or cashier’s cheque instead.
Credit unions follow their own policy
The federal limits apply to federally regulated institutions such as the big banks and online banks like EQ Bank and Tangerine. Credit unions and caisses populaires are regulated by their province and set their own hold policies, so check the policy your credit union gave you when you opened the account.
“Available” does not mean “cleared”
This is the part that costs people money. When a bank lets you withdraw the funds, it has not confirmed that the cheque is good. The FCAC says a cheque can still be returned to your bank, and this can happen even after the maximum hold period has passed.
If that happens, the bank reverses the deposit. If you already spent the money, your balance can go negative and you may pay overdraft charges. This is how overpayment scams work: someone sends a cheque for more than they owe, asks you to send the difference back by e-Transfer, and the cheque bounces days later.
A simple rule for large or unexpected cheques
If a cheque comes from someone you do not know, or for more than you expected, do not send money back or spend it just because the funds show as available.
- Call your bankAsk whether the cheque has actually cleared, not just whether the hold has ended.
- Contact the sender independentlyUse a phone number you found yourself, not one printed on the cheque or in the email.
- Wait it outA real payer can wait a few more days. A scammer usually pushes you to act fast.
Why banks hold cheques at all
A cheque is a promise to pay, not money. Before the funds are final, the cheque has to travel through the clearing system to the payer’s bank, which then confirms there is enough money in the account, that no stop payment was placed and that the cheque has not been altered. The FCAC lists those as the main reasons for a hold. If the bank gives you the money before that process finishes, the FCAC notes it is effectively extending you credit.
Ways to get your money sooner
- Deposit in person with a teller. Under the rules this gets you $100 right away and shortens the maximum hold by one business day.
- Deposit early on a business day. Each bank sets its own daily cut-off, and a deposit after that time can be treated as the next business day’s.
- Ask the payer to send an Interac e-Transfer, direct deposit or wire instead. Electronic payments are not covered by the cheque hold rules and usually arrive without a multi-day hold, though banks can still delay any payment they suspect is fraudulent.
- Ask your bank to release the hold. Banks can choose to make funds available sooner, especially for long-standing customers with a good history.
- For government payments, sign up for direct deposit. Government of Canada cheques can be cashed free at any bank, including one where you are not a customer, if the cheque is $1,750 or less and you show acceptable ID, but direct deposit avoids holds entirely.
What to do if your bank holds a cheque too long
- Check the dates. Count business days from the day after your deposit, skipping Saturdays, Sundays and holidays, using the table above.
- Ask for the reason in writing. The FCAC says that if your bank will not follow the maximum hold or the first-$100 rule, it must give you written notice. Ask for it if you did not get one.
- Read your bank’s cheque hold policy. Federally regulated institutions must give you a written hold policy when you open an account, and must give notice before changing it.
- Make a complaint to the bank. Start with the branch or customer service, then the bank’s complaints office.
- Escalate if needed. If the bank does not resolve it, you can take the complaint to the external complaints body your bank belongs to, and report a possible breach of the rules to the FCAC.
Frequently asked questions
How long can a bank hold a cheque in Canada?
For a Canadian-dollar cheque drawn on a Canadian branch, a federally regulated bank can hold it for up to 4 business days if it is $1,500 or less and deposited with a teller, or 5 business days by ATM or mobile app. Over $1,500, the limits are 7 and 8 business days. Exceptions apply to new accounts, suspected fraud, cheques endorsed more than once and cheques six months old or more.
Do weekends count in a cheque hold?
No. The regulations count business days, which exclude Saturdays and holidays, and Sundays are treated as holidays. A cheque deposited on a Friday starts counting on Monday.
Can my bank hold a mobile cheque deposit longer than an in-branch deposit?
Yes, by one business day. A mobile or ATM deposit can be held up to 5 business days for cheques of $1,500 or less and 8 business days for larger cheques, and the first $100 is available the next business day instead of immediately.
Why is my cheque on hold if my account is new?
The maximum hold limits and the first-$100 rule do not apply to accounts open for less than 90 days, so a bank can hold cheques longer while the account is new. Ask your bank for its specific policy.
How long do US cheques take to clear in Canada?
Cheques drawn on banks outside Canada are not covered by the Canadian hold limits. The FCAC says institutions often hold them for 30 days, and the funds are taken back if the cheque does not clear.
Can a cheque bounce after the hold is over?
Yes. The FCAC says a cheque may be returned to your bank even after the maximum hold period has expired. The deposit is then reversed, which can leave your account overdrawn if you spent the money.
- Sources, checked October 16, 2026: Access to Funds Regulations (SOR/2012-24), current to 2026-09-30, sections 2 to 6; FCAC: Cashing a cheque (modified 2025-10-17); FCAC: Cashing a cheque, know your rights (modified 2025-10-15).
- Method: Business-day dates in the example were counted by script from Friday, October 16, 2026, skipping weekends. No statutory holidays fall in that window.
Important: This guide is general information, not legal or financial advice. Hold rules for credit unions and caisses populaires are set by each province. Your bank’s own hold policy may release funds sooner than the legal maximum. Gizly is not paid by any bank mentioned here. See our affiliate disclosure.
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