Did you know that when you deposit a cheque at a caisse or at an ATM, a hold may be placed on all or part of the funds for a few days?
Holding funds is a routine procedure for all financial institutions in anticipation of returned cheques (stop payment orders, NSF cheques or postdated cheques). When you cash a cheque, the caisse waits for a certain amount of time before processing it to make sure it is valid.
The Caisse populaire holds funds for 5 business days when you deposit a cheque at a caisse and for 7 business days when you deposit a cheque at an ATM. A hold is also placed on cash deposited at an ATM (for verification purposes).
When a hold is placed on your money, you can still withdraw as much from your account as your authorized transit allows.
The authorized transit is a maximum amount you can withdraw right after you deposit a cheque. It is determined when you open your account and based on several criterias.
For example, if you deposit a $700 cheque at the ATM and your authorized transit is $500, you can withdraw $500 immediately. However, the remaining $200 will be held for 7 business days.
You can avoid having a hold placed on your funds by asking your employer to deposit your pay directly into your account. Government cheques can also be deposited directly into your account.
Depending on your situation, your caisse may help you out if needed and your authorized transit can be reviewed if your circumstances change.