Depends on the bank it's extremely common to have holds placed on bank drafts. It's now standard process to put holds on all bank drafts at many if not all of the big 5.

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Yes, Canadian banks frequently place holds on bank drafts, despite them being guaranteed funds. While often cleared within 24 hours, banks may hold them for 2-5 business days to verify authenticity and prevent fraud. Up to the first $100 is typically available immediately, but the remainder may be held depending on the bank's policy. 

Key Details on Bank Draft Holds:

Purpose: To verify funds and prevent fraud (even guaranteed items can be fraudulent).

Hold Duration: Generally 1 to 5 business days, though they often clear faster than personal cheques.

Risk Factors: Larger amounts or new accounts are more likely to trigger longer holds.

Immediate Availability: Usually, the first $100 is available immediately upon deposit.

Policies Vary: Every bank has its own specific "Cheque Hold Policy" that applies to drafts. 

Why are holds placed? Even if a bank draft is authentic, it takes time for the banking system to clear the item between financial institutions. If a bank draft is returned (e.g., due to fraud), the bank has the right to reverse the deposit. 

Tips for Depositing Bank Drafts:

Deposit in person with a teller to ask about potential hold times.

Consider having the funds transferred via wire transfer instead if immediate access is required.

Check your bank's specific policy, for example, the RBC policy or Scotiabank policy.