How to Switch Banks in Canada Without Losing Money (2025 Guide)
Updated June 16, 2025 | By WealthFusions Finance Team
Switching banks in Canada can feel overwhelming—worrying about missed payments, hidden fees, or credit score damage. But with the right steps, it’s safe, simple, and even financially beneficial. This complete guide breaks down how to switch chequing or savings accounts in 6 easy steps, with expert tips, printable checklists, and the latest data from Canadian financial institutions.
Step 1: Choose the Right Bank & Account Type
Before you switch banks, research the best chequing or high-interest savings accounts based on:
- Monthly fees and waiver rules (e.g., minimum balances or direct deposits).
- Interest rates on both chequing and savings balances.
- Mobile app quality, branch access, and customer service ratings.
Pro Tip: Read our full comparison of Canada’s top financial institutions.
Step 2: List All Pre‑Authorized Payments & Deposits
Before closing your old account, make a full list of recurring transactions so you can move them safely.
| Payee | Type | Amount | Frequency | Next Withdrawal |
|---|---|---|---|---|
| Hydro One | Utilities | $120.00 | Monthly | July 5, 2025 |
| Netflix | Streaming | $16.99 | Monthly | June 28, 2025 |
| Employer | Payroll Deposit | Varies | Bi-weekly | June 20, 2025 |
Tip: Use your online banking history to identify all automatic deposits and debits from the past 60 days.
Step 3: Open Your New Account & Initiate Transfers
Open your new account online or in-branch. Activate key services like:
- Direct deposit enrollment (CRA, employer, pensions).
- Pre-authorized payment updates (e.g. mortgage, utilities, subscriptions).
- e-Transfer and mobile deposit features.
Many Canadian banks offer automated switch kits to help transfer up to 20 recurring payments in under 10 business days. Scotiabank, TD, RBC, and CIBC offer these tools online or via mobile apps.
Step 4: Transfer Your Funds Carefully
Use this timing strategy to avoid bounced payments and overdraft fees:
- Leave a $100+ buffer in your old account until all pending debits clear.
- Transfer large sums via Interac e‑Transfer (daily limits $3,000–$10,000) or linked external transfers.
- Schedule your final transfer at least 1 business day before account closure.
Stat: 92% of Canadians who wait 5–7 days after opening their new account report zero payment disruptions.
Step 5: Close Your Old Account & Request Refunds
Once all debits clear and deposits are confirmed, contact your old bank to close the account. Ask about:
- Refunds on recent monthly fees or account closure charges.
- Confirmation that the account is closed in writing or email.
- Destroying unused cheques and debit cards.
| Bank | Notice Required | Fee Refund Policy | Closure Method |
|---|---|---|---|
| RBC | 30 days | Up to $12 refunded | Written or in-person |
| TD | None | Up to $10 refunded | In-branch only |
| Simplii | None | Annual fee refunded if closed early | Online request |
Keep your old account open for 30 days if unsure—just monitor it weekly to avoid dormant fees.
Step 6: Monitor Your Accounts for 30–60 Days
After switching banks, continue tracking activity:
- Check both old and new statements for unexpected charges or missed payments.
- Confirm that all direct deposits (CRA, employer, EI) are active at your new bank.
- Set up alerts or calendar reminders to monitor recurring transactions.
If a payment fails, call the vendor immediately to avoid late fees or service interruptions.
Final Thoughts: Switch Smart and Save Money
Switching banks in Canada is easier than ever—especially with online tools and no-fee options. By tracking your payments, using a bank’s switch kit, and timing your transfers wisely, you can avoid fees, protect your credit, and upgrade your banking—without losing a cent.
Frequently Asked Questions (FAQ)
- 1. Will switching banks affect my credit score?
- No—chequing and savings accounts don’t appear on your credit report.
- 2. How long does it take to switch banks in Canada?
- About 7–14 business days if using an Automated Account Switch Kit.
- 3. What happens to outstanding payments on my old account?
- They’ll still go through until the account is closed. Keep it open with a balance for at least 2 weeks after switching.
- 4. Are there fees for closing a bank account?
- Some banks charge $10–$15 unless waived; others refund fees if you request them.
- 5. Do I need to notify CRA when switching banks?
- Yes—log in to MyCRA to update your direct deposit details to ensure tax refunds or benefits aren’t delayed.
- 6. Can I switch banks entirely online?
- Yes—most Canadian banks support online openings, e-signatures, and digital switch kits in 2025.