Switching bank accounts in Canada is easier than most people expect — but it requires a methodical approach to avoid missed payments or disrupted direct deposits. This step-by-step guide walks you through switching safely from a Big 5 bank to a no-fee online bank.
KOHO is the fastest account to open in Canada — no credit check, entirely online, instant virtual card. Use code 45ET55JSYA for a signup bonus. Open it before you start the switching process.
Open KOHO Free — Use Code 45ET55JSYABefore closing or stopping use of your current account, audit it thoroughly. You need to identify every inflow and outflow connected to the account:
Review 3 months of bank statements to catch every recurring charge. Subscription services in particular can be easy to miss.
Open your new account before touching your old one. For a no-fee chequing account, open Tangerine or Simplii. For everyday spending with cash back, open KOHO. For savings, open EQ Bank. Most online accounts can be opened entirely online in 10–15 minutes. KOHO requires no credit check and approves instantly.
Before redirecting any payments, make sure your new account is fully functional:
Contact your employer's HR or payroll department and provide your new account's banking information. Most employers need a void cheque or a pre-printed direct deposit form. For online banks without paper cheques, download a void cheque image from your new bank's app — most online banks provide this. Allow one full pay cycle for the change to take effect before relying on it.
For government payments (CRA, CPP, OAS, EI), update your banking information through your CRA My Account or by calling Service Canada.
Contact each biller with your new banking information. Work through your list systematically:
Allow at least one full billing cycle before assuming a PAD has been updated. Keep your old account funded until you've confirmed every biller has processed at least one payment from the new account.
If you pay bills through your bank's online bill payment system, recreate those payees in your new bank. Log in to your old bank, screenshot or write down every bill payee and account number, then add them to your new bank.
Keep your old account open and minimally funded for 1–2 months after starting the switch. This buffer period protects you if any payments haven't been updated yet. Monitor both accounts weekly.
Once you've confirmed all payments are running smoothly through your new account for at least 2 billing cycles, you can close the old account. Visit the branch, call the bank, or use their online closure process. Request written confirmation of the closure. Ensure the account balance is $0 before closing — any remaining balance should be e-Transferred out.
Mortgages, loans, credit cards, and investment accounts at your old bank don't need to move when you switch chequing accounts. You can keep a mortgage at CIBC while using Simplii (also CIBC) or any other bank for chequing. You can keep a credit card at RBC without keeping a chequing account there.
When your mortgage comes up for renewal, compare online bank rates (Motusbank, Tangerine) at that time — you may be able to switch and save.
Opening a new account: 10–15 minutes. Full transition period (safe to close old account): 30–60 days. The process isn't instantaneous but it's not complicated — it just requires systematic follow-through over a few weeks.
Switching bank accounts in Canada is a one-time 30-minute effort spread over 60 days, after which you'll never pay a monthly bank fee again. The savings — $180–$360 per year at most Big 5 banks — compound over time. Start by opening KOHO or Tangerine today, and begin the transition at whatever pace suits you.