Switching banks in Canada streamlines your finances toward better rates, digital tools, or service aligning with life changes like relocation or family growth. The process takes 1-4 weeks with minimal hassle using tools like Powerswitch from BMO or Scotiabank's bill switcher.
| Step | Key Actions | Timeline |
|---|---|---|
| 1. Research & Choose | Compare fees, apps, branches via Ratehub or bank sites | 1-3 days |
| 2. Open New Account | Online/branch with 2 IDs (driver's license + utility bill) | Instant-2 days |
| 3. Transfer Funds/Direct Deposits | Update payroll, gov't payments (CRA), bills | 1-2 weeks |
| 4. Close Old Account | Confirm zero balance, cancel linked services | After 30 days |
Research Your Needs
List pain points—high fees, poor app, limited ATMs—then compare Big 5 (RBC, TD, Scotiabank, BMO, CIBC), credit unions (Vancity), or digital banks (Tangerine, Simplii). Check no-fee chequing, savings rates (4-5% promo), and perks like unlimited transactions. Tools like NerdWallet checklists match options; e.g., KOHO suits mobile users.
Gather Documents
Prepare two IDs: primary (passport/driver's license) with photo/DOB, secondary (utility bill, SIN for some). No SIN needed for basic chequing, but have bank statements ready for transfers. Digital banks verify via app selfies; branches process same-day.
Open New Account
Apply online (TD EasyWeb, Scotia app) or visit branches in major cities. Deposit initial funds via e-transfer from old bank—many offer $300-500 switch bonuses. Activate debit/credit cards immediately; test with small transactions.
Update Direct Deposits
Compile master list: payroll (notify HR 2 weeks ahead), gov't benefits (CRA My Account portal), pensions. Provide new institution/transit numbers. Banks like BMO Powerswitch auto-reroute pre-authorized debits (PADs) for bills, subscriptions (Netflix, gym), loans. Update apps: PayPal, Google Pay.
Redirect Automatic Payments
Review 6-12 months statements for PADs—mortgage, utilities, insurance. Contact payees (e.g., Rogers) with new details or use bank's switch tool (Scotiabank "Switch my bills"). Set calendar alerts for annuals like property tax.
Transfer Funds Safely
Move bulk via EFT (free, 1-3 days) or wire ($15-50 fee). Leave $100-200 in old account for stragglers. Monitor both 30 days; overdraft old to avoid bounces hurting credit.
Monitor and Close Old Account
After 4 weeks, verify no activity via statements. Request closure letter (avoids dormancy fees). Shred cards/checks; update estate docs, RRSP links. Credit unions may reimburse old ATM fees.
Minimize Fees and Risks
Time switch mid-month to dodge NSF; leverage promos (e.g., Scotia $700 bonus). No penalties for closing—banks compete fiercely. Digital switches cut errors; e.g., Wealthsimple integrates seamlessly.
Special Considerations
Immigrants use newcomer programs (TD, RBC); self-employed update CRA for GST/HST. Multi-account holders (chequing + savings + GICs) phase separately. Quebec residents check Desjardins perks.
Canada's open banking push (2026 rollout) will automate further, but current manual steps ensure control. Most complete hassle-free, saving $200+ yearly on fees for pros like you managing service inflows.
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