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How to switch banks

How to switch banks in Canada

Chris Clark
Tyler Wade

Fact checked by Scott Birke

Updated Jun 10, 2025

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Nervous about switching banks? Here's our easy step-by-step guide on how to switch banks in Canada.

Switching banks in Canada is easier than you think. Sure, loyalty is important. But when it comes to money and banks, loyalty can also cost you, especially when it comes to not switching banks.  

Canadians are surprisingly stubborn when it comes to parking their cash, but you don't have to be. Welcome. 

Switching banks in Canada: Step-by-step

banks in Canada<\/a>. Consider factors like account types, fee structures, interest rates, digital banking features, and branch accessibility. Don't forget to look into credit unions and online banks, as they often offer competitive advantages. Choose a bank that best meets your identified needs from Step 1."]},{"id":"3c32de1c-b372-4845-82e0-cd76a55f6f93","error":{},"title":"3. Open an account","paragraphs":["Once you've chosen a new bank, the next step is to open an account. This can typically be done online, in-person at a branch, or over the phone. You'll need to provide personal identification and possibly some financial information. Ensure you understand the terms and conditions of the account, including any fees or minimum balance requirements."]},{"id":"aa380ce5-97f4-403c-806a-b24fb8261d41","error":{},"title":"4: Transfer direct deposits, debits and use your new account","paragraphs":["Transition all your direct deposits (like your work salary) and automatic bill payments to your new account. This involves informing your employer and service providers of your new banking details. It's crucial to ensure all recurring payments are updated to avoid missed bills or service interruptions.","Begin actively using your new bank account. Familiarize yourself with the online banking system, mobile apps, and any other services your bank offers. It\u2019s a good time to set up any new automatic savings plans or budgeting tools available through your new bank."]},{"id":"29275216-57d3-4512-b23b-a8c1b8951e2c","error":{},"title":"6: Withdraw money and officially close your old account","paragraphs":["Finally, transfer any remaining funds from your old account to your new one. Once all direct deposits and automatic payments are successfully rerouted and the balance is zero, contact your old bank to close the account. Ensure you receive a confirmation of the account closure to avoid any future issues."]}])" class="w-full col-start-1 col-end-[-1] mx-auto" >

Before moving your hard-earned money, clearly define your reason for the change. Are you seeking lower fees, better customer service, higher interest rates, or more convenient branch locations? Understanding your primary motivation will guide your decision-making process and ensure that your new bank aligns with your financial needs and goals.

Research and compare different banks in Canada. Consider factors like account types, fee structures, interest rates, digital banking features, and branch accessibility. Don't forget to look into credit unions and online banks, as they often offer competitive advantages. Choose a bank that best meets your identified needs from Step 1.

Once you've chosen a new bank, the next step is to open an account. This can typically be done online, in-person at a branch, or over the phone. You'll need to provide personal identification and possibly some financial information. Ensure you understand the terms and conditions of the account, including any fees or minimum balance requirements.

Transition all your direct deposits (like your work salary) and automatic bill payments to your new account. This involves informing your employer and service providers of your new banking details. It's crucial to ensure all recurring payments are updated to avoid missed bills or service interruptions.

Begin actively using your new bank account. Familiarize yourself with the online banking system, mobile apps, and any other services your bank offers. It’s a good time to set up any new automatic savings plans or budgeting tools available through your new bank.

Finally, transfer any remaining funds from your old account to your new one. Once all direct deposits and automatic payments are successfully rerouted and the balance is zero, contact your old bank to close the account. Ensure you receive a confirmation of the account closure to avoid any future issues.

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What to consider before switching banks
  • Better rates and rewards: Look for higher interest on savings, lower fees, stronger loan rates, or more valuable credit card perks.
  • Specialized services: Need investment advice, foreign currency accounts, or business banking? Make sure your new bank has the tools.
  • Convenience: Prefer face-to-face service? Choose a nearby branch. Going digital? Prioritize a slick app, strong security, and easy access to bill pay and transfers.
  • Fees (the fine print): Check for monthly account fees, ATM charges, transfer fees, and any penalties for closing your current account—especially if you’ve got loans or mortgages tied up.

Why people switch banks

People switch banks for all kinds of reasons, but it usually comes down to getting more for their money and feeling better taken care of. Lower fees, higher interest rates, and smoother digital banking all play a role. Some want better advice and real support, not a recent grad with no training and labelled as a financial advisor there to upsell you products. Others are chasing stronger rewards, credit card perks, and a full suite of financial tools that actually fit their lives.

When scouting a new bank, prioritize your financial lifestyle.
  • Do low fees, high-interest savings, or robust digital services top your list? Compare offerings from both major and local banks, not overlooking online banks for potentially better rates and lower fees.
  • Don't undervalue customer service; read reviews and consider banks that are known for their customer support. Lastly, explore bonuses or incentives for new customers, which can add value to your switch. Remember, the right bank should not only meet your current needs but also support your long-term financial goals.
  • And if daily chequing is important, look for banks that make it easy for your money to come and go for routine transactions with as little fees as possible.

What documents do I need to switch banks?

To open a bank account, you will be asked for your personal details, including your full name, address, and contact information. Additionally, you are required to present valid proof of identification. For opening a savings account, your Social Insurance Number (SIN) is also necessary.

Enroll in online and mobile banking

Online and mobile banking when switching banks is essential for modern financial management. You can monitor accounts, transfer funds, and pay bills anytime, anywhere. This digital access is crucial for keeping track of your finances, especially during the transition period.

Finding online banks

The Canadian Bankers Association reveals a significant shift towards digital banking, with 78% of Canadians opting for online and mobile app-based banking solutions. In 2021, mobile app usage for banking activities increased to 65% from 56% in the previous year, highlighting a growing preference for online banking services.

Fortunately, Canada's best online banks are actively vying for customers by enhancing their offerings in terms of features, pricing, and convenience. In our comprehensive guide to the best digital banking, we've evaluated the top online banks in Canada. 

Summary

How much money are bank loyalists leaving on the table by not making the switch? If you’re open to change, you can find some great benefits by switching banks for better customer service, lower fees, higher interest rates on savings accounts, or more suitable financial products.

If you’ve recently thought about moving your money, it’s time to walk through each step above, from evaluating your banking needs to successfully transferring your financial activities – ensuring a seamless transition to a bank that better suits your financial goals.

Switching banks FAQs

  • Do I need to change banks when I move

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    Most Canadian banks have branches and ATMs across the country, along with robust online and mobile banking platforms that make it easy to manage your finances from anywhere.

  • Can I switch banks if I have a loan?

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    You can switch banks even if you have an existing loan. Some loans, like personal loans or car loans, may be transferable to another bank. You will need to negotiate with your new bank to see if they are willing to take over the loan. This process can involve credit checks and may come with certain fees or changes in interest rates.

  • Does switching banks affect credit score?

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    Switching banks in Canada doesn’t directly affect your credit score. There are some indirect ways your score could be affected: If you apply for new credit products (like a credit card or a loan) at your new bank, the bank will likely conduct a hard inquiry into your credit report. Hard inquiries can slightly lower your credit score, though the impact is usually small and temporary.

  • Are there any fees for switching banks?

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    Fees will largely depend on the policies of both your old and new bank. Some charge a fee for closing an account, especially if it's closed soon after opening. It's important to check the terms of your account for any such fees. There might also be charges for transferring money from your old account, particularly if you are moving a large sum or conducting wire transfers. Also watch out for monthly fees for certain types of accounts, though these fees can sometimes be waived if you maintain a minimum balance or have multiple products with the bank.

  • Do you need to change your bank after you retire?

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    There’s no mandatory requirement to switch banks when you retire. But retirement brings some special considerations. Some banks offer specific products and services tailored for retirees, like accounts with lower fees or higher interest rates on savings, which can be more beneficial during retirement.

    As your lifestyle changes in retirement, you might value different aspects of banking, such as more accessible branch locations, better customer service, or superior online banking features. If your financial focus shifts towards managing your retirement savings and investments, you might prefer a bank with strong wealth management and financial advisory services.

  • Is it easy to switch banks in Canada?

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    Yes. Switching banks in Canada is a straightforward process, and most banks make this move customer-friendly. Canadian banks offer easy-to-navigate online and in-person procedures, making the transition smooth. Key steps like opening a new account, transferring funds, and setting up automatic payments are efficiently managed with minimal hassle.

    Additionally, the presence of comprehensive digital banking services allows for seamless management of financial activities. The Canadian banking system supports this transition, ensuring that customers can switch banks with ease and confidence.

Chris Clark Freelance Contributor

Chris Clark is freelance contributor with Money.ca, based in Kansas City, Mo. He has written for numerous publications and spent 18 years as a reporter and editor with The Associated Press.

Tyler Wade Personal finance content strategist & writer

Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.

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