How to Transfer Money From One Canadian Bank to Another

Some Canadians are loyal customers who plan to stick with their bank for life. Others choose to take advantage of promotional benefits and switch to a new bank or financial institution. There is no right or wrong answer. But there are logistics. After going through the hassle of opening a savings account at a different bank, your job isn’t over just yet. You still need to transfer your money to the new institution.

Moving funds between banks may sound straightforward, but steps can vary depending on the method you choose. Some options are fast and digital. Others take a few days to process. In this guide, we’ll walk through several ways to transfer money between Canadian banks, discussing how long each method takes, and what fees to expect along the way. You’ll also learn the safest way to move your money and, most importantly, how to choose the right process for your situation.

How bank-to-bank transfers work in Canada

Transferring money between two Canadian banks is easier now than ever before. The method you choose, though, determines how fast the funds move, whether fees apply, and what limits you’ll face. In Canada, several payment systems support bank-to-bank transfers with each made for a different purpose.

At the simplest level, you can move money domestically using electronic transfers such as Interac e-Transfers and linked-account transfers. These rely on Canada’s banking network and follow federal payment rules. International transfers work differently, though. They use wire systems or global payment networks, which often involve additional steps, longer processing times, and higher costs.

Do you have frequent or larger-than-average-sized transfers? If so, you may choose to link accounts between two financial institutions and send your money through an electronic funds transfer (EFT). This allows you to move money directly between banks without using cheques or third-party apps. Simply put, this method is highly efficient.

Understanding how these systems operate helps you choose the safest and most cost-effective option for your situation. In Canada, there are five main methods to transfer money from one institution to the next.

Method 1: Interac e-Transfer

Interac e-Transfer is one of the fastest and easiest ways to send money between two Canadian banks. It works in minutes, and almost every financial institution in Canada supports it.

Here’s how to send yourself money using Interac e-Transfer:

1.  Log in to your online banking or mobile application
2. Select “Interac e-Transfer”
3. Add yourself as the recipient using the email or mobile number linked to your other bank account
4. Enter the transfer amount in dollars and answer the security question (if applicable)
5. Confirm and send the transfer
6. Accept the e-Transfer using the notification sent to you by email or text message. Choose the account at your new bank as the deposit account.

The major benefit of this transaction type is speed. Funds usually arrive in a matter of minutes. On occasion, it can take up to 30 minutes if the bank is performing fraud checks. Either way, it’s quite quick. The downside is the limits placed on the amounts you can send this way. The cap varies based on the bank and account type, so check with your financial institution before trying to send a large transfer.

Cost is the advantage of this transaction type. Some banks charge a small fee of $1 to $1.50 to send an e-Transfer, while others allow it for no additional cost. Either way, receiving money by e-Transfer is almost always free in Canada.

Method 2: Electronic Funds Transfer between linked bank accounts

Electronic Funds Transfers, often called EFTs, are one of the most reliable ways to move money between two Canadian bank accounts. Once you set up the link between your accounts, the funds move directly through Canada’s electronic payments system without needing e-Transfers, cheques, wires, or third-party apps. It’s simple and predictable. It also works well for recurring or large transfers.

How to set up an EFT between two financial institutions:

1. Log in to your bank’s online or mobile banking platform
2. Add an external account by entering its institution, transit, and account number details
3. Wait for two small deposits to appear in the receiving account. This will typically happen within one to two business days
4. Return to your online banking and enter the deposit amounts in order to verify your ownership
5. After verification, you can transfer money between your accounts as needed

While setting up the EFT link between your accounts can take some work, once done, the process is seamless. Then, when you need to move money, the funds usually arrive within the same day or one business day later. It can take up to four business days in some cases, though.

The disadvantage of this transfer method is that it only works for Canadian institutions. This means that if you need to send money to a bank in the US, you will need to select another process. You can, however, send USD transfers this way, provided you link two USD accounts at Canadian institutions.

Method 3: Wire transfers

At times, if you need to transfer large amounts of money or send funds to an international bank, a wire transfer might be your best bet. It’s reliable and works for both in-country and international transfers, with money often arriving the same day for domestic wires.

Steps to send a wire transfer in Canada:

1. Visit your bank branch or log into your online banking
2. Enter in the receiving bank’s information, including their name and branch address
3. Provide the information for the recipient account, including the SWIFT and transit number, as well as your new account number
4. Send the wire and wait for the proceeds to arrive in your new account

The downside to sending a wire is the fees associated with it. The exact costs vary based on the bank and depend on whether you’re sending money domestically or internationally. For example, the cost of sending a domestic wire transfer from RBC starts at $45 for a Canadian dollar account, yet CIBC lists wire fees beginning at $30. Some Canadian banks don’t charge to receive a wire transfer, while others do.

Sending a wire may cost more, but the process is reliable as it moves money directly from one financial institution to another using secure payment networks. Wire transfers don’t use email or mobile phone numbers either. Instead, they move money through the banking system in a formal, traceable way.

Method 4: Bank drafts & certified cheques

If you prefer to use a paper-based option or need to transfer a large amount of money, a bank draft or certified cheque can work well. This option is helpful for making a down payment, paying for a major purchase, or moving a large amount to a new bank.

Your bank issues a bank draft after it withdraws the money from your account and places it into a secure internal account. A certified cheque works differently. Here, the bank stamps a personal cheque to confirm that the funds exist and are available for the recipient. Both options provide stronger security than a regular cheque.

How to transfer money using a bank draft or certified cheque:

1. Visit your bank branch in person and ask for a bank draft. Or, you can request that they certify your cheque
2. Pay the applicable fee, which depends on the bank
3. Take the cheque or bank draft to your new bank
4. Deposit the cheque as you normally would through a bank teller or using an ATM

The main advantage of this type of funds transfer is security and certainty. It also avoids the sending limits associated with e-transfers and EFTs. The drawback is speed. Banks may still place a hold on these cheques even though they come with guaranteed funds. As hold times vary per institution, it’s best to check with your new bank directly for details.

Method 5: Mobile applications & fintech options

Another possible solution is to transfer your money through a third-party fintech application like Wise or PayPal. These platforms act as intermediaries, helping you transfer funds, especially across borders.

The advantage of this method is that it allows for competitive foreign exchange pricing and lower fees compared to traditional bank wires and international transfers. It does, however, require an extra processing step. Your money will need to flow into the application first, then out to the final account at the bank. With this in mind, take note of transfer and foreign exchange fees as well as transfer limits and estimated delivery times.

Speed and fees associated with each transfer method

Every transfer method moves at its own speed, and fees vary by bank. Here is a clear comparison to help you choose a preferred option.

Security tips when transferring between banks

Beyond choosing the right transfer method, it’s essential to take steps to keep your money safe. Begin by double-checking every detail before you send your funds. Always confirm you have the correct institution, transit, and account numbers, as even a single incorrect digit can send the proceeds to the wrong place.

Also, ensure you use a secure, private internet connection when banking online. This means avoiding public Wi-Fi. When possible, also consider turning on two-factor authentication to add an extra layer of protection.

Finally, beware of phishing scams. Fraudsters can mimic bank alerts in hopes that you will click the link. To be safe, sign in to your banking from the institution’s home website rather than clicking an email or text message link.

Takeaway

Transferring money between banks may feel complicated, but it doesn’t need to be. Once you understand your options and the limits of each method, you can choose the transfer type that fits your needs best. Not to mention your timeline. Whether you rely on e-Transfers for their speed, EFTs for recurring transactions, or wires for international money management, there is an approach that can work for you.