Everything you need to know: how e-transfers work, limits by bank, fees, auto-deposit, and how to send money for free.
Interac e-Transfer is Canada's primary person-to-person money transfer system, processing over 1 billion transactions per year. Whether you're splitting a bill, paying rent, or sending money to family, this guide covers everything you need to know — including which banks offer free unlimited e-transfers.
You log into your bank's app or website, select "Send e-Transfer," enter the recipient's email address or phone number, the amount, and an optional security question and answer.
Interac sends the recipient an email or text message letting them know money is waiting. The notification includes your name but NOT your account details.
If auto-deposit is enabled, the money lands in the recipient's account automatically — no security question needed. Otherwise, they click the link, log in, answer the security question, and deposit to their chosen account.
With auto-deposit: typically within minutes. Manual acceptance: usually the same day, sometimes up to 30 minutes. Money comes from your chequing/savings account in real time.
You receive a notification when the money has been deposited. If not accepted within 30 days, the transfer expires and funds return to your account.
Unlike wire transfers or EFTs, Interac e-Transfer is designed for Canadian consumers and small businesses. It's built on existing banking infrastructure, uses email/phone as identifiers (no account numbers needed), and is operated by Interac Corp — a Canadian cooperative owned by major financial institutions.
| Institution | Send Limit / Transaction | Daily Send Limit | Monthly Limit | Fee Per Transfer |
|---|---|---|---|---|
| RBC | $3,000 | $100 | $20,000 | Free (Signature No Limit+) |
| TD | $3,000 | $100 | $20,000 | Free (Unlimited+) |
| Scotiabank | $3,000 | $100 | $20,000 | Free (Preferred+) |
| BMO | $3,000 | $100 | $20,000 | Free (Performance+) |
| CIBC | $3,000 | $100 | $20,000 | Free (Smart+) |
| Simplii Financial | $3,000 | $100 | $30,000 | Free (always) |
| Tangerine | $3,000 | $100 | — | Free (always) |
| EQ Bank | $3,000 | $100 | — | Free (always) |
| KOHO | $3,000 | $100 | — | Free (always) |
| Credit Unions | Varies ($1,000–$3,000) | Varies | Varies | Usually free with membership |
| RBC/TD/Scotia Basic Plan | $3,000 | $100 | $20,000 | $1.00–$1.50/transfer (basic plans) |
RBC, TD, Scotiabank, BMO, and CIBC charge $1.00–$1.50 per e-transfer on their basic/entry-level plans. To get free unlimited e-transfers, you need to be on their middle-tier plan or above (which has a monthly fee of $15–$17). Simplii, Tangerine, EQ Bank, and KOHO all offer free e-transfers on their free accounts.
Auto-deposit automatically deposits incoming e-transfers to your account without you needing to accept them manually or answer a security question. This is more convenient and actually more secure (no shared security question).
Navigate to the e-Transfer section in your banking app or online banking portal.
Look for "Autodeposit" or "Auto-deposit" under e-Transfer settings. Not all banks label it the same way.
Add the email address or phone number you want associated with auto-deposit. Interac will send a confirmation.
Choose which account (chequing or savings) incoming e-transfers should automatically deposit to.
Any e-transfer sent to your registered email/phone now deposits automatically — no manual acceptance required.
Your email address can only be registered for auto-deposit at one financial institution at a time. If you have multiple bank accounts, you'll need to use different email addresses or phone numbers for each — or choose one as your "primary" auto-deposit destination.
All e-transfer data is encrypted with 128-bit SSL encryption during transmission — the same standard used for online banking globally.
The recipient never sees your account number, bank name, or any financial details. Only your name is shared.
For manual acceptance (non-auto-deposit), a security question protects the transfer. Never share the answer via the same channel as the transfer notification.
Unclaimed e-transfers expire after 30 days and funds return to the sender automatically. You can also cancel pending transfers.
Once the recipient accepts an e-transfer, the transaction cannot be reversed. Only send to people you trust — there is no chargeback mechanism.
Your bank's own security (2FA, biometric login) protects against unauthorized sends. Enable 2FA on your banking app.
Small businesses in Canada widely use Interac e-Transfer for collecting payments. The maximum single transfer is $3,000 for most banks, with a $100 daily limit. For larger business payments, Interac e-Transfer for Business allows transactions up to $25,000.
Business accounts at major banks typically include unlimited e-transfers as part of their monthly business banking plans ($20–$100+/month depending on the bank).
If you're currently paying $1–$1.50 per e-transfer on a basic big bank plan, here are your free options:
| Method | Speed | Max Amount | Fee | Best For |
|---|---|---|---|---|
| Interac e-Transfer | Minutes (auto-deposit) | $3,000/transfer | Free–$1.50 | Personal payments, rent |
| Wire Transfer | Same day–3 days | Unlimited | $15–$50+ | Large/international amounts |
| EFT (pre-authorized) | 2–3 business days | Varies | Free–$2 | Recurring payments |
| PayPal | Instant (within PayPal) | ~$60,000/yr | Free (bank transfer) | Online purchases, international |
| Cash | Instant | No limit | Free | In-person small amounts |
| Cheque | 2–5 business days | Unlimited | Free | Large formal payments |
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