In a long-overdue move, the Canadian government is putting pressure on the banks to improve their glacial cheque-clearing time:
Ottawa is cutting the amount of time banks can hold cheques up to $1,500 to four business days from seven for consumers and small- and medium-sized businesses.
The measures detailed today, part of last year’s budget, will also give consumers “immediate access” to the first $100 deposited by cheque. There will be a 30-day period for comment.
“Lower-income seniors, Canadians without significant balances in their accounts, younger Canadians who do not have a long banking history, and people who receive cheques from newer employers or clients are often subject to longer cheque hold periods,” the Department of Finance said. “These are often the Canadians who most need quick access to their funds.”
This is great news for me personally: I’m self-employed. I bill my clients directly for a month’s work, they take time to process my invoice and issue a cheque, then I deposit it into my business account. Seven business days later after that, I can actually get some of that money into my personal account. It’s amazing how long seven business days can seem when you’re juggling the mortgage, property tax bills, utilities, and all the other things that can’t be postponed to a time when the bank lets you get at your own money.
H/T to Elizabeth for the link.
