Switching banks in Canada is more straightforward than most people think — but it does require careful planning to avoid missed payments or interrupted direct deposits. Whether you're moving from a Big 5 bank to a no-fee digital bank, switching between major banks, or adding a second account, this guide walks you through every step of a successful bank transition.
The most common reasons Canadians switch banks include:
Before starting, decide whether you want to fully switch banks or run two accounts in parallel. Many Canadians find a hybrid approach works best — keeping a Big 5 bank account for mortgages and services that require a bank with a physical presence, while using a no-fee digital bank for everyday transactions. This approach captures the benefits of both without the friction of a complete switch.
Open your new account before closing the old one. Never close your old account first — you need it active to transfer pre-authorized payments and receive existing direct deposits while you transition. Opening a new Canadian bank account typically requires:
Most new accounts can now be opened fully online within 10–15 minutes. KOHO, Simplii Financial, Tangerine, and EQ Bank all offer instant online account opening. Big 5 banks also allow online account opening, though some may require a follow-up branch visit for identity verification depending on the account type.
The most important and time-consuming part of switching banks is updating pre-authorized payments and direct deposits. Before changing your banking information, compile a complete list of:
Contact your employer's HR or payroll department and request a direct deposit change. You'll need to provide your new account's transit number, institution number, and account number — all found on a void cheque or in your online banking under account details. Government benefits can be updated online through My CRA Account or My Service Canada Account. Allow 1–2 pay cycles for changes to take effect.
Contact each biller and provide your new banking information. This can be done online, by phone, or in writing depending on the organization. Allow at least 30 days for changes to process before the payment is due. For critical payments like mortgage and insurance, notify the organization well in advance and confirm the change has been processed before closing your old account.
Keep your old account open with a small positive balance (ideally enough to cover any payments you may have missed updating) for at least 60–90 days after beginning the transition. This buffer period catches any payments that were not successfully updated to your new account. Monitor your old account weekly during this period.
Once you've confirmed that all direct deposits and pre-authorized payments have moved to your new account, transfer the remaining balance from your old account. Leave a small buffer ($50–$100) in case any delayed transactions come through.
To close a bank account in Canada, you typically need to:
Banks are not required to close your account over the phone or online in all cases — some may require an in-person visit. Check your bank's specific requirements. There is no fee to close a bank account in Canada.
Registered accounts (TFSA, RRSP, RESP) require a formal transfer process — you cannot simply withdraw funds and redeposit them at a new institution, as this can cause contribution room issues or tax consequences. Instead, use the T2033 (RRSP/RRIF/PRPP direct transfer) or T2030 form to request a direct transfer between financial institutions. The new institution typically handles this paperwork on your behalf. Allow 2–6 weeks for registered account transfers to complete. There may be a transfer-out fee of $50–$150 at the originating institution, though some new institutions will reimburse this fee as an incentive to switch.
If you're switching from a Big 5 bank to a no-fee digital option like KOHO, Simplii Financial, Tangerine, or EQ Bank, the process is the same as outlined above. Key considerations for digital-only banking:
A complete bank switch typically takes 60–90 days from opening a new account to closing the old one. The process can be shorter if you have few pre-authorized payments and a simple banking setup, or longer if you have many automatic payments, registered accounts to transfer, or if you encounter delays with government benefit updates.
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