Other Important Information

U.S. Float on U.S. Dollar Current Account

Due to timing delays in dealing with U.S. financial institutions, there is a gap between the time that CIBC gives and receives value for funds in U.S. dollar transactions. This delay is called "float" and affects the way any deposit interest and overdraft fees or interest charges (collectively referred to as "overdraft charges") will be calculated on your U.S. Dollar Current Account. For example, when you make a deposit in U.S. dollars (other than a CIBC draft), CIBC must collect those U.S. funds through the applicable U.S. dollar banking system. In general, CIBC receives credit for those funds at least one, and sometimes several, business days after the U.S. dollar deposit is made to your account, so we will only give you value for deposits one or two days after the deposit is made. Similarly, CIBC usually gives value to the appropriate U.S. financial institution for the amount of a U.S. dollar payment drawn on your account at least one business day before the date the U.S. dollar payment appears as recorded in your usual monthly statement.

Therefore, for the purpose of determining the balance in a U.S. Dollar Current Account for the calculation of deposit interest or overdraft charges payable:

  • Each U.S. dollar deposit made (other than a CIBC draft) that may appear on your account statement on the date of deposit will only be considered received and credited to the account (and available for reduction of any overdraft) on the first or second1 business day immediately after the deposit is made.
  • To ensure same-day credit for deposits of CIBC drafts and cheques drawn on the CIBC branch of account, these items should be segregated from other items and deposited separately.
  • Each cash withdrawal, electronic funds transfer, cheque or any other payment drawn on the account (other than drawn for purchase of one or more items at the CIBC branch of account) (collectively referred to as a "withdrawal") or paid out from your account on the corresponding date shown on your usual account statement will be considered effectively deducted from your account on the first business day immediately before that date.
  • Based on the above, even if your account balance shows a credit balance because of a U.S. dollar deposit you made, if any U.S. dollar withdrawal is made prior to the date on which we give you value for that deposit (as indicated above), you may incur overdraft charges.
  • Saturdays, Sundays and holidays that your CIBC branch of account is closed are not business days for the above purposes. A supplementary float statement will be sent to you after your account statement is sent, to confirm the daily balances, interest and overdraft charges, adjusted as indicated above. This supplementary float statement will not be sent if there has been no activity in your account to report.


Foreign currency transactions

CIBC may, in its discretion, permit transactions in a currency different from that of your account. The foreign currency will be converted to the currency of your account at the exchange rate determined by CIBC on a date determined by CIBC, which may be different from the date you performed the transaction. If a foreign currency Instrument previously deposited and converted to the currency of your account is returned to CIBC unpaid for any reason, you agree an amount equal to the foreign currency Instrument will be converted to the currency of your account based on a foreign exchange sell rate determined by CIBC on a date determined by CIBC and the converted amount will be charged back to your account. CIBC is not responsible for any losses you may incur due to changes in foreign currency exchange rates or the unavailability of funds due to foreign currency restrictions. You agree that any claims CIBC may have against you, and any service or other charges related to your account, can be deducted from your account in the same currency as the account2.

Account conversions

If you change your account type prior to the end of the final business day of the month to an account with a different fee structure, all transactions during that month (including those made before the change) will be subject to the fees under the fee structure that applies to your new account type at the end of the month. However, any fees which have already been paid or deducted from your account during the month (e.g., for money orders) will not be refunded upon conversion.

Need more information?

Contact a CIBC representative or visit a CIBC branch near you.

1-800-465-2422 toll free