Do they use notes received in deposits for withdrawals? Or, more specifically, can you withdraw any denomination of notes instead of only $20s?
Based on my TD experience I can say that the general answer to that question is: no. But there are machines in specific branches where there are no "people" tellers or CSRs but only machine tellers. These machines allow you to withdraw any denominations - although I have tested them and it is not the notes that were just deposited. Also these machines are accessible only when the "branch" is open.
The other distinction between the "branch" machine tellers and the regular ATMs is that the regular ATMs will not allow you to withdraw any random amount - say for example 160. The "branch" machine tellers will allow you to withdraw any amounts.
There is one more distinction: the "branch" machine tellers can allow you to deposit I believe 200 notes. On the other hand the regular ones limit you to 50 at a time. So to do 200 you will have to do it 4 times all be it in one login.
Some other differences between TD and CIBC ATM's without envelopes:
CIBC is more environmentally friendly because it uses much less paper for receipts compared to TD. If you were to deposit 100 notes TD will have to print you two separate receipts while CIBC will do it only on one although in both you have to do it in batches of 50's.
CIBC is more convenient because you can combine cheques and notes in one pile and in one slot. For TD you have to choose and then insert it in different slots separately.
I have tried TD with paper notes. So far have not had a problem with any denomination of journey series including per-security 5's and 10's.
There is an interesting error I got once on TD machine which said "Forced Deposit". I was trying to see if the machine would accept polymer bank notes that according to BoC standards would be considered unfit. It did take the notes but it had me ask how much deposit I made in dollars.
