Transferring Your Products and Services When Switching Banks
Published on June 16, 2025 | By WealthFusions Finance Team
Switching banks doesn’t have to be stressful. Whether you’re moving from a big bank to a challenger or consolidating credit cards, a clear transfer plan ensures your cash flow and bills stay uninterrupted. This comprehensive guide walks you through 6 essential steps to transfer your accounts, loans, credit cards, and services smoothly—complete with timelines, checklists, and a comparison of major Canadian bank Switch Kits.
1. Make an Inventory of All Your Financial Products & Services
Start by listing every product linked to your current bank, including:
- Chequing and savings accounts
- Credit cards and lines of credit
- Mortgages, personal and auto loans
- Pre-authorized bill payments (utilities, subscriptions)
- Payroll direct deposits and government benefits
- Investment accounts like TFSA, RRSP, GICs
Tip: Review recent statements or your online dashboard for hidden fees or automatic renewals.
2. Compare Bank “Switch Kits” and Their Transfer Timelines
Many banks provide free “Switch Kits” to automate transfers. Here’s how major Canadian banks stack up:
| Bank | Switch Kit Fee | Estimated Timeline | Auto-Transfer Payroll? | Bill Pay Migration |
|---|---|---|---|---|
| RBC Royal Bank | $0 | 7–10 business days | Yes | Yes (up to 20 vendors) |
| TD Canada Trust | $0 | 5–7 business days | Yes | Yes (unlimited) |
| Scotiabank | $0 | 7–14 business days | Yes | No (manual update required) |
| Alterna Bank | $0 | 5–10 business days | No | Yes (up to 10 vendors) |
Information accurate as of June 2025.
3. Open and Fund Your New Accounts First
To avoid interruptions:
- Open your chequing, savings, credit card, and loan products at the new bank.
- Make an initial deposit to meet minimum balance requirements (usually $100–$500).
- Order new debit and credit cards and register for online banking immediately.
Example: Funding your new account with $500 may qualify you for fee waivers and enable smooth pre-authorized payments.
4. Set Up Pre-Authorized Payments and Direct Deposits
Switch your recurring payments and deposits by:
- Completing your new bank’s Direct Deposit Form and submitting it to your employer or the CRA (for government benefits).
- Notifying each biller (utilities, insurance, phone) of your new account details or providing a void cheque.
- Using your new bank’s online “Bill Pay Switch” service, or updating payments manually if unavailable.
Checklist: Keep track of each vendor’s name, old account, new account, and the date of update to confirm all payments have transferred.
5. Transfer Loans, Mortgages, and Investments
These products may require special attention:
- Mortgages: Check for pre-payment penalties before breaking your mortgage; explore “porting” options if staying with the same lender.
- Lines of Credit: Apply at your new bank and request payoff of your existing balances.
- Investments: Initiate a “Transfer In Kind” for RRSPs and TFSAs to avoid capital gains taxes. Transfers typically take 7–14 days.
Example: A $25,000 RRSP in-kind transfer may cost $0–$150 CAD and take about 10 business days.
6. Close Old Accounts and Confirm Completion
After all transfers clear:
- Verify old accounts have zero balances (including overdrafts and interest).
- Submit written closure requests (some banks require in-branch visits or signatures).
- Obtain confirmation receipts or emails for your records.
Warning: Closing accounts too early can risk missed payments or deposits.
Conclusion & Call to Action
Switching banks and transferring all your financial products can be seamless with a clear, organized plan. Inventory your products, use free Switch Kits, and follow our step-by-step checklist to avoid missed payments and penalties. Ready to make the switch?
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Frequently Asked Questions
- 1. How long does a Switch Kit take?
- Typically between 5 and 14 business days, depending on the bank and number of services transferred.
- 2. Are there fees to transfer my RRSP?
- Most institutions charge between $0 and $150; fees may be waived if you meet minimum transfer amounts.
- 3. Can I keep my old credit card?
- Yes, but closing it might affect your credit score. Keeping at least one card open with low or no annual fee is often recommended.
- 4. What if my direct deposit doesn’t switch?
- Contact your employer’s payroll department and submit new direct deposit forms to both your old and new banks.
- 5. Do I need to visit a branch to close accounts?
- Some banks allow online or mail closures; others require in-branch visits. Check your bank’s policy.
- 6. Will automatic bill payments transfer?
- Most Switch Kit services handle this, but always verify each vendor to avoid missed payments.
- 7. How do I transfer my mortgage?
- Discuss porting options with both lenders and consider consulting a mortgage broker to avoid penalties.
- 8. Can I switch banks mid-month?
- Yes, but plan around billing cycles to prevent double payments or late fees.