Canada Cheque Hold Rules 2026: Is the New $250 Rule in Effect?
Quick Summary: Canada’s $250 Cheque Rule
As of August 27, 2026, Canada’s new $250 cheque-access rule has been enacted but is not yet in force. Bill C-15 received Royal Assent on March 26, 2026, but Division 15 will take effect only on a date set by the Governor in Council.
For eligible personal cheque deposits today, the current federal rule still generally requires access to the first $100—immediately for an in-person deposit and by the next business day for other deposit methods such as an ATM or mobile deposit.
Is Canada’s $250 Cheque Rule in Effect Yet?
No. As of August 27, 2026, the new $250 immediate-access rule is not yet in force. Parliament passed Bill C-15, the Budget 2025 Implementation Act, No. 1, and it received Royal Assent on March 26, 2026. The enacted legislation replaces section 627.22 of the Bank Act with a new rule that would require the prescribed amount—or, if no amount is prescribed, the first $250—to be available for withdrawal immediately.
However, section 332 states that this change comes into force only on a date fixed by Order in Council. The federal Justice Laws website currently lists Division 15 as not in force. Until that commencement date is set, the existing $100 rule continues to apply.
💡 Why do some older government pages say $150? Some Budget 2025 materials originally described a proposal to increase immediate access from $100 to $150. The final legislation that received Royal Assent uses $250. For the current legal status, the enacted legislation and the consolidated Bank Act are the better references.
Current Cheque Hold Rules in Canada: How Much Can You Access Today?
Under the current federal rules, federally regulated financial institutions must generally give consumers access to the first $100 of an eligible cheque deposited into a personal retail deposit account. The timing depends on how the cheque is deposited.
💡 Current First-$100 Access Rule
- In person with an employee: the first $100 must generally be available immediately.
- ATM, mobile deposit, or another method: the first $100 must generally be available by the next business day.
- If the eligible cheque is $100 or less, the entire amount must generally be made available under this rule.
These federal protections do not apply to every cheque. They generally cover eligible paper-based cheques or similar instruments that are deposited in Canada, issued in Canadian dollars, drawn on a Canadian branch of a covered financial institution, encoded for cheque clearing, and readable by the clearing system.
What Will Change When the $250 Rule Takes Effect?
| Rule | Current Rule | Enacted New Rule |
|---|---|---|
| Amount protected | First $100 | Prescribed amount, or $250 if none is prescribed |
| In-person deposit | Immediate | Immediate |
| ATM / mobile deposit | By next business day | Immediate under the enacted section |
| Status on Aug. 27, 2026 | In force | Not yet in force |
The federal government has also said it is developing regulations intended to shorten cheque hold periods. Those future hold-period changes should not be treated as active until the applicable regulations and commencement dates are officially in force.
Maximum Cheque Hold Periods in Canada
For eligible Canadian-dollar cheques covered by the current federal rules, the amount above the immediately accessible portion may be held while the financial institution verifies the cheque. Subject to the exceptions below, the maximum federal hold periods are:
| Cheque Amount | In Person | ATM / Mobile / Other |
|---|---|---|
| $1,500 or less | 4 business days | 5 business days |
| More than $1,500 | 7 business days | 8 business days |
* The day you deposit the cheque is not counted as one of these business days.
When the Standard Hold Rules May Not Apply
The maximum hold periods and the first-$100 access rule have important exceptions. For example, the standard protections may not apply when:
- the account has been open for less than 90 days;
- the cheque has been endorsed more than once;
- the cheque is deposited six months or more after its date;
- the cheque is not issued in Canadian dollars;
- the institution has reasonable grounds to believe the deposit is connected to illegal or fraudulent activity;
- the cheque does not meet the technical conditions for the federal hold rules, such as being sufficiently readable by the cheque-clearing system.
A cheque over $1,500 is not automatically an exception. It is simply subject to the longer standard 7- or 8-business-day maximum hold period shown above.
Foreign cheques can take substantially longer. FCAC notes that financial institutions often hold cheques drawn on institutions outside Canada for about 30 days, depending on the circumstances and the institution’s policy.
⚠️ “Available” Does Not Mean the Cheque Has Cleared
A bank releasing some or all of the money does not guarantee that the cheque is valid. A cheque can still be returned later because of insufficient funds, a closed account, a stop payment, fraud, or another problem. If that happens, the financial institution may remove the cheque amount from your account even after a hold period has expired. Be especially cautious if someone asks you to deposit a cheque and then send part of the money elsewhere.
What to Do If a Bank Holds Your Cheque Longer Than Allowed
- Ask for the reason in writing. If the institution relies on an exception, ask for the written information required under the applicable rules.
- Start the bank’s formal complaint process. Keep your complaint number, dates, screenshots, deposit receipt, and any written response.
- Escalate to OBSI when eligible. If the bank closes the complaint and you are not satisfied, or it has not resolved the complaint within 56 days, you may take it to the Ombudsman for Banking Services and Investments (OBSI).
- Contact FCAC for information or to report a potential compliance issue. FCAC supervises federally regulated financial institutions and can explain your rights and the complaint process, but it does not resolve individual disputes or award compensation.
Does the Rule Apply to Credit Unions?
Federal banking consumer-protection rules apply to federally regulated institutions, including banks and federal credit unions. A provincially regulated credit union is governed primarily by the rules of its province or territory, so its cheque-hold requirements may differ.
Frequently Asked Questions
1. Is the first $250 of a cheque available immediately in Canada?
Not yet. The $250 provision has been enacted, but as of August 27, 2026 it has not been brought into force. The current federal first-access amount for eligible personal deposits remains $100.
2. What is the current mobile cheque deposit hold rule?
Under the current rule, the first $100 of an eligible personal cheque deposited by mobile app, ATM, or another non-teller method must generally be available by the next business day. The new enacted provision removes this timing distinction, but it is not yet in force.
3. Can a bank hold a payroll cheque?
Yes. A paper payroll cheque can be subject to cheque-hold rules just like other paper cheques. Direct deposit is different because it does not rely on paper-cheque clearing.
4. Can a cheque bounce after the bank releases the money?
Yes. Access to funds is not the same as final settlement of the cheque. If the cheque is later returned unpaid, the financial institution may debit the amount from your account.
5. When will the $250 cheque rule start?
No commencement date is shown in the current federal legislation as of August 27, 2026. Division 15 will take effect on a date fixed by the Governor in Council. Until an official commencement order is made, the current $100 rule remains in force.
Official Sources
Disclaimer: This article provides general information about Canadian banking rules as of August 27, 2026. Cheque-hold policies and legal requirements can change, and provincial rules may differ for provincially regulated credit unions. Check the latest FCAC guidance and your financial institution’s policy for your specific situation.
