Clarification from the Bank of Canada re: Change to legal tender status in 2021

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Hi,

after months of scouring various banks for mutilated banknotes, I was faced with tellers saying to me that:

a.  "After January 1 2021, the old notes will become worthless."
b.  "Banks won't accept them any more."
c.  "Make sure that you know that we won't accept the notes after January if you want to trade them in. (Tellers at an RBC branch AND a CIBC branch both said this.)

I wrote to the Bank of Canada to clarify the situation and seemingly conflicting information I have received from the Chartered banks and the Bank of Canada itself.

Here is the text of my email and the response from the Bank of Canada:

To whom it may concern:

 

Recently, I was told by a bank teller that with the upcoming change in legal tender status for some older Bank of Canada notes, that the bills will become "worthless".

 

The teller also told me that (Chartered) "banks will not accept old banknotes after January 1st 2021" and that their managers have instructed them not to accept any obsolete currency from the public after that date.

 

Would you please clarify the following:

 

1.  After January 1st 2021, will a customer be able to walk into any chartered bank (RBC, CIBC BMO, etc...) to deposit their obsolete banknotes?

 

2.  After January 1st 2021, are the Chartered banks obliged to accept obsolete banknotes at full face value?

 

3.  Is there a "sunset clause" whereby the Chartered banks will cease accepting obsolete Canadian banknotes?

 

I have been receiving conflicting messages from the Bank of Canada ads regarding the upcoming change in legal tender status and what the tellers are saying.

 

Thank you,

RESPONSE from the BOC:

Good day,

 

Thank you for your email.

 

The bank teller was incorrect in telling you that these notes will be deemed worthless.

 

These bank notes will not lose their value as of January 1, 2021. The Bank of Canada will continue to honour them at face value.

 

All that is changing is that these notes will no longer be usable in transactions at stores.

 

Financial institutions can accept these bank notes on behalf of their clients and can continue to do so after their legal tender status is removed as of January 1, 2021. The decision to accept or refuse a note is taken at the bank branch level.

 

You can also redeem your bank notes by sending them to the Bank of Canada Bank Note Redemption Service. You can find information on how to do this on our website.

 

Kind regards,

 

Alex

Public Information | Information publique

Bank of Canada | Banque du Canada

234 Wellington Street | 234, rue Wellington Ottawa

Ottawa, Ontario K1A 0G9

Telephone | Téléphone : 1-800-303-1282

info@bank-banque-canada.ca



So it appears that individual bank branches CAN refuse to redeem obsolete banknotes after all...

Dean

Thanks for sharing Dean.

It is what I've been hearing primarily with $1000 banknotes here:
https://toronto.ctvnews.ca/ontario-man-surprised-after-bank-refuses-to-accept-his-1-000-bills-here-s-why-they-won-t-1.5216263?fbclid=IwAR0wgEMEEENkc39aYEiOTIeXkQDYWxEivC6pIacftAvtil_j19GGcv0m0Vg and via other online forums. 

It's usually not the $1 nor the $2 the chartered banks take issue with but the $1000 banknotes that they don't want to accept (& the reason I posted what I posted after you picked up a couple $1000 under your "Deans Finds" thread). They will likely have to be sent to the BOC Redemption Service. 

I had some old Swedish Krona notes that I had to send for redemption & it cost about 12% fee as well- just FYI (& there was a redemption form that had to be filled out & validated at the bank)

Thanks for sharing Dean.

It is what I've been hearing primarily with $1000 banknotes here:
https://toronto.ctvnews.ca/ontario-man-surprised-after-bank-refuses-to-accept-his-1-000-bills-here-s-why-they-won-t-1.5216263?fbclid=IwAR0wgEMEEENkc39aYEiOTIeXkQDYWxEivC6pIacftAvtil_j19GGcv0m0Vg and via other online forums. 

It's usually not the $1 nor the $2 the chartered banks take issue with but the $1000 banknotes that they don't want to accept (& the reason I posted what I posted after you picked up a couple $1000 under your "Deans Finds" thread). They will likely have to be sent to the BOC Redemption Service. 

I had some old Swedish Krona notes that I had to send for redemption & it cost about 12% fee as well- just FYI (& there was a redemption form that had to be filled out & validated at the bank)

Thanks for the info about the $1000 notes.
I still pick them up, because I like them.  I can see why people who hold them are nervous about redeeming them for full face value.  Who in their right mind wants to pay a service charge on currency?

Just today, I had to turn down 10 x 1954 $1000 notes that the teller had in her cull pile.
She was perfectly willing to sell them to me, but I simply did not have the cash!
My only consolation was that they were the common Lawson Bouey variety and they were all EF condition at best.

Had any of them been a 1935, 1937, 1954 devil's face or the elusive Thiessen Crow signed notes, I would have taken them immediately using borrowed funds! 

I still hold out hope that my hunts will return some rare notes; I have scored some pretty neat stuff lately, but wouldn't it be nice to catch a 1935 $25 or one of the few remaining $500 notes?

I am simply grateful for all of the wonderful tellers I have met in recent months who go above and beyond their job description to feed my obsession with collecting money, which is still seen as a fringe hobby to most of the general public.

I will continue on my banknote rescue runs for as long as I possibly can because I enjoy doing it and it brings me pleasure to help people fill their collections with affordable notes.


Dean

I am glad you are having such success...and a little envious.
In the small town where I live there are only 3 banks and 1 credit union. Only 1 of the banks is willing to let me look at the mutilation pile.  The other three are taking a hard line saying, "we're not allowed to do that...they must be sent back". This includes my own branch that I've banked at your years with multiple mortgages. 

I am simply grateful for all of the wonderful tellers I have met in recent months who go above and beyond their job description to feed my obsession with collecting money, which is still seen as a fringe hobby to most of the general public.

-It is great to know that you do realize (& not take for granted) how fortunate you are.

The other three are taking a hard line saying, "we're not allowed to do that...they must be sent back"

-this has been more in line with my experience in a mid-size burb of TO.  I share your pain "Moneycow" & while I have had some limited success in the past, its actually with another bank I have used & only due to one nice teller (who has been transferred to different branches- likely as a result of his keen service towards me! 

But one thing Dean you hit on is very true: that it is a fringe hobby & that does spell O-P-P-O-R-T-U-N-I-T-Y for anyone who has the funds & energy to pursue it like Dean does.  Also, guys, don't forget the WORLD banknote scene. In another forum, I have seen a member discuss a new error variety on his Belgium 5 Franc (which he bought at a regular price).  Many coin collectors don't get banknotes so it isn't that unusual to get a replacement or special number, short prefix (etc) that slips under the coin dealer's radar.
 
Happy hunting (& all the best in the New Year!)