My bank now "freezing funds" on all $US cheque deposits

[fenian]

Just advised today by my bank (technically a credit union) that all $US and GBP funds covering anything other than cash (i.e. cheques, money orders etc) will be held (read "frozen and inaccessible") for 15 days from the date of deposit. I'm told that this is now to be standard practice for all Canadian financial institutions. As a fair whack of my sales are in non-Canadian dollars, I'll have to keep track of not just my balance(s), but also will have to set up a calendarized accounting sub-system to show when I can actually access my money. Of course, they can still charge back whatever they want at any point after 15 days - it just hampers they cash flow! Anyone else running into this ??? >>>>>>>> Michael

[whoscloset]

I'm with BMO. When I lived in the city I had to wait 30 days for MO's deposited to my US$ account to be released. Now that I live in a small town they deposit them without any hold.

[3jcc14]

Hi, I'm with BMO as well. For US Dollars, if I deposit anything but US Cash or Canada Post Money Orders in US Funds they put a 30 day hold at my branch in Dryden ON (population 9000). If I go up the road to Sioux Lookout ON (population 5400) - about an hour away and where I work 2-3 times a week, that BMO branch does not put a hold on any US Dollar deposit.

[recped]

Most Canadian banks by standard policy will hold non domestic cheques for 15 - 30 days.

Have a chat with the manager and explain your situation, all he/she needs to do is give or increase your "cash back" allowance and you should have immediate access to funds. It's strictly manager discretion in these situations. If you don't get the answer you want then let them know you'll be looking for an alternate bank.

If you do seek out an alternative make this a condition of switching. If you have a good history and a reasonable flow of cash through the account you will find someone who will co-operate.
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