How to Switch Banks in Canada 2026 — Step-by-Step Guide

Updated March 2026 · 10 min read

Switching banks in Canada is easier than most people think — but the process requires some planning to avoid missed payments or lost direct deposits. This step-by-step guide walks you through switching banks without disruption, whether you're moving from a Big 5 bank to a no-fee digital bank or switching between traditional institutions.

How Long Does It Take to Switch Banks?

A full bank switch — from opening your new account to closing the old one — typically takes 4–8 weeks if done properly. Rushing the process risks missed payments or disrupted direct deposits. The timeline:

• Week 1: Open new account, get account details
• Week 2–3: Update direct deposit sources
• Week 3–4: Update all bill payments and pre-authorized debits
• Week 4–6: Confirm all payees have updated, monitor old account
• Week 6–8: Close old account once confirmed quiet

Step-by-Step Bank Switching Guide

Step 1: Open Your New Account

Open your new account and obtain your new banking coordinates (transit number, institution number, account number). For digital banks like KOHO, EQ Bank, or Simplii, this takes 5–15 minutes online. For Big 5 banks, you may need to visit a branch.

Step 2: Get Your New Direct Deposit Form

Download your new bank's direct deposit form PDF from their online banking or mobile app. This is what you'll submit to your employer, CRA, and any government benefit programs. How to get a void cheque or direct deposit form →

Step 3: Update Your Employer's Payroll Direct Deposit

1. Contact your HR or payroll department and provide your new direct deposit information.
2. Allow 1–2 pay cycles for the change to take effect (payroll is typically processed 5–10 business days in advance).
3. Keep your old account open until at least one full paycheque has arrived in the new account.

Step 4: Update CRA Direct Deposit

1. Log into CRA My Account at canada.ca.
2. Navigate to Profile → Direct Deposit.
3. Update to your new bank account information.
4. The next CRA payment (tax refund, GST credit, CCB) will go to your new account.

Step 5: Update Pre-Authorized Debits and Bill Payments

This is the most time-consuming step. Create a list of every company that withdraws from or charges your current account:

Step 6: Monitor Your Old Account

Keep your old account open (with a small balance) for at least 4–6 weeks after initiating all changes. Payments from companies that didn't update in time will still route to your old account. Monitor weekly and manually transfer any surprise direct deposits or cover any pre-authorized debits you missed updating.

Step 7: Update Online Bill Payments

In addition to pre-authorized debits, you may have bill payees set up in your old bank's online banking. Either:

• Transfer the payees manually to your new bank's online banking, or
• Set up bill payments directly with each payee using your new banking information

Note: Bill payee lists don't automatically transfer between banks. You must re-enter them in your new bank's system.

Step 8: Close Your Old Account

Once you're confident all direct deposits and bill payments have migrated:

1. Confirm your account balance. Transfer any remaining funds to your new account.
2. Contact your bank to close the account (in-branch, by phone, or online — varies by bank).
3. Request written confirmation of closure for your records.
4. Cut up or shred your old debit card.

Can I Automate the Switching Process?

Some Canadian banks now offer a "banking switch" service where they help migrate your direct deposits and bill payments. RBC and TD have offered versions of this service. Payments Canada's formal bank switching regime has also been in development — check with your new bank whether they offer a concierge migration service.

Switching Banks Checklist

• ☐ New account opened and account numbers obtained
• ☐ Direct deposit form obtained from new bank
• ☐ Employer payroll updated
• ☐ CRA direct deposit updated
• ☐ Service Canada benefits updated (EI, CPP, OAS if applicable)
• ☐ Provincial benefits updated (if applicable)
• ☐ Mortgage/rent PAD updated
• ☐ Insurance premiums updated
• ☐ Utilities updated
• ☐ Telecom (phone/internet) updated
• ☐ Loan/HELOC payments updated
• ☐ Streaming subscriptions updated
• ☐ Gym/memberships updated
• ☐ RRSP/TFSA contributions updated
• ☐ Online bill payees re-entered in new bank
• ☐ Old account monitored for 4–6 weeks
• ☐ Old account formally closed and card destroyed