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How to Switch Banks in Canada | Complete Checklist

Updated

How to Switch Banks: Overview

Phase Timeline Key Actions
1. Prepare Day 1-3 Open new account, gather info
2. Move money Week 1 Transfer savings, set up direct deposit
3. Update payments Week 2-3 Move pre-authorized debits and credits
4. Verify Week 4-6 Monitor both accounts
5. Close old account Month 2+ Close when confident no missed payments

Step 1: Choose Your New Bank

Compare Key Features

Feature What to Look For
Monthly fees $0 is ideal
Interest rate 4%+ for savings
e-Transfer limits Higher is better
App quality Check reviews
ATM access Free network size
Customer service 24/7 preferred
Type Best Choice Why
No-fee chequing Simplii, Tangerine $0 fee, full features
High-interest savings EQ Bank 4%+ interest
All-in-one Wealthsimple Banking + investing
Big 5 (if needed) TD, BMO Branch access

Step 2: Open Your New Account

What You Need

Document Required
Government ID Yes (driver’s license, passport)
SIN Yes (for tax reporting)
Address proof Sometimes
Existing bank details For transfers

Opening Process

  1. Apply online (5-10 minutes)
  2. Verify identity (upload ID or visit branch)
  3. Fund account (e-Transfer or link old bank)
  4. Receive debit card (3-7 business days)

Step 3: Create Your Switch Checklist

Direct Deposits to Update

Source How to Update
Employer payroll HR department or portal
CRA (tax refunds, benefits) CRA My Account
CPP/OAS Service Canada
Child benefits (CCB) CRA My Account
EI payments Service Canada
Pension Contact administrator

Pre-Authorized Debits (PAD)

Compile a list from your last 3 months of statements:

Category Common Examples
Utilities Hydro, gas, water
Insurance Car, home, life
Subscriptions Netflix, Spotify, gym
Phone/Internet Telco providers
Loans Mortgage, car loan, student loan
Property tax Municipal payments

Pre-Authorized Credits

Source How to Update
Investment dividends Brokerage settings
Rental income Tenant or property manager
Side business income Update payment processor

Step 4: Transfer Your Money

Savings Transfer Options

Method Speed Cost Best For
e-Transfer Instant Free Under $3,000
EFT transfer 3-5 days Free Large amounts
Wire transfer Same day $15-45 Very large amounts
Bill payment 1-2 days Free To some banks

Steps

  1. Link accounts using account numbers
  2. Initiate transfer from new bank (usually fastest)
  3. Verify funds arrived
  4. Keep minimum balance in old account until switch complete

Step 5: Update Direct Deposits

Priority Order

Priority Update Why
1 Employer payroll Main income source
2 Government benefits CCB, GST, etc.
3 Other income Rental, pension, etc.

CRA Benefits Update

  1. Log into CRA My Account
  2. Go to “Direct deposit”
  3. Enter new banking info
  4. Changes apply to next payment

Employer Payroll

Most employers need:

  • New bank name
  • Transit number (5 digits)
  • Institution number (3 digits)
  • Account number

Find these numbers on a void cheque or in your new bank’s app.

Step 6: Update Pre-Authorized Payments

Update Approach

Method When to Use
Online portal Most bills, subscriptions
Phone Utilities, insurance
In-person Some services
Pre-filled form Mortgages, loans

Timeline Strategy

Week Action
Week 1 Update largest/most important bills
Week 2 Update remaining subscriptions
Week 3-4 Verify all payments processing correctly
Week 5-8 Monitor old account for any missed items

Common Updates

Service Typical Method
Netflix Account settings online
Gym Front desk or online
Insurance Phone or online portal
Utilities Online or phone
Phone/Internet Online account
Mortgage Contact lender (may require forms)

Step 7: Monitor Both Accounts

Keep your old account open for 1-2 months:

What to Monitor Why
Old account debits Catch missed PADs
Old account credits Catch missed deposits
New account debits Verify successful transfers
NSF or bounced payments Act immediately

Set up alerts on both accounts for all transactions.

Step 8: Close Your Old Account

When to Close

Condition Ready to Close?
All PADs moved ✓
All deposits moved ✓
No activity for 1 month ✓
Zero balance ✓
No pending transactions ✓

How to Close

Method Instructions
Online Some banks allow online closure
Phone Call customer service
In-branch Visit with ID

Before Closing

  1. Download statements (last 7 years for records)
  2. Withdraw remaining balance
  3. Cancel any linked services
  4. Return or destroy debit card and cheques
  5. Get closure confirmation in writing

Common Mistakes to Avoid

Mistake Consequence Prevention
Closing old account too early Missed payments, NSF fees Wait 2 months
Forgetting annual payments NSF when payment attempts Review 12 months of statements
Not updating e-Transfer contacts Contacts send to old account Notify frequent senders
Missing government benefits update Benefits go to old account Update CRA immediately

Switching Services Some Banks Offer

Bank Switching Service
Tangerine Account Switch Kit
Simplii Switch Kit
TD TD Account Move
BMO Account Switch Journey

These services help identify and switch PADs automatically.