Get Approved for up to $35,000 in 3 minutes
Apply Now
Blog Categories
Loan Calculator
FAQ

How to Transfer Money Between Banks in Canada

Written by Jessica Steer
Reviewed by Janessa Ellis
In Canada, there are plenty of different reasons why you may want to send money. Due to this, there are plenty of different funding methods you can use to send that money. However, it can be a little tricky if you’re looking to transfer to another bank since it’s not as simple as just transferring from account to account.
Table of Contents

    Before you start transferring money to another bank, there’s some information that you’re going to need. That said, the type of information you’re going to need is based on the type of account you’re transferring to and how you’re making the transfer. 

    Ways to Transfer Money

    In actuality, transferring money from one bank account to another is pretty simple. You can actually make cash transfers right at your bank or use your online banking if you prefer to avoid making cash payments. It usually doesn’t cost anything to send money from your chequing accounts, and it only takes one to two business days for the funds to transfer. However, sending money from savings accounts can incur fees. 

    This is so simple because many Canadians use online or mobile banking for paying their bills, paying rent, and other monthly payments. However, before you can do this, you do need to provide the bank with some information. This information includes:

    • The recipients name
    • The recipient's account number
    • The recipient's bank branch and routing number
    • Amount of funds to transfer
    • Memo advising what the funds are for

    Transferring Money Instantly

    If you want to send instant transfers to another bank account, the best method is to use Interac e-transfer, also referred to as an electronic funds transfer. With e-transfers or electronic transfers, you can send funds as domestic wire transfers at a low or no charge. Because e-transfer has become so common in Canada, many banks include free e-transfers with your bank account package. 

    Using email money transfer is pretty straightforward. All you have to do is add the recipient as a payee. Once you have done that, you can send money anytime and anywhere. Plus, all you need to add a recipient is the recipient’s email address and a secret question. 

    When setting up the e-transfer, you’ll add a custom secret question and answer. You want to be sure you’re picking something only the recipient would know so that the wrong person doesn’t have access to the funds. Alternatively, you don’t have to do this. If the recipient has signed up for an auto-deposit, then the funds going to the external account will be deposited immediately. 

    Other Ways to Transfer Funds in Canada

    If you don’t want to go through your financial institution to send the funds, another option is to use third-party money transfer services or mobile apps. These services, like Western Union, provide the ability to transfer money domestically and internationally for a low cost. 

    No matter which transfer service you choose, there’s a fee associated with every transfer, including international transfers. Every company also has their own foreign exchange fees. These transfers aren’t immediate, either. They take a few business days to complete. That said, you are able to track your funds online. 

    Transferring Large Amounts of Money

    When you’re transferring large amounts of money from banks or credit unions to different banks, you don’t want to do a traditional transfer since these often have transfer limits. The best of many transfer options to complete this process is by using a bank draft. 

    Bank draft transfers are a more secure form of transferring funds. They work similarly to cheques, but they’re more secure and regulated by banks. In order to get a bank draft, you have to purchase them through your financial institution. They then write up the draft, and the funds are taken out of your bank account. They’ll stay with the bank until the bank draft is cashed. The cost of a bank draft transfer is dependent on the financial institution from which you purchase it. Alternatively, you can also use a money order. 

    Limits on What You Can Transfer Online

    When you’re making online transfers, your financial institution will often have limits as to how much you send in a certain time frame based on transfer methods. This amount can range anywhere from $4,000 to $10,000. With interac e-transfer, the maximum limit you can direct deposit daily is between $2,000 and $3,000. However, the limit for e-transfer is $3,000 in a 24-hour period and $14,000 in a seven-day period. 

    How To Transfer Money With The Top 5 Banks

    The biggest thing to consider when transferring money from one financial institution to another is your financial institution. Every bank has its own process, and each works a little bit differently. 

    TD

    With TD, if you’re looking to send money electronically to another bank, the simplest way is to do a wire transfer or Interac e-transfer instead of using payment apps. If you’re going to use e-transfer, it’s the same as you would with any other financial institution. For a wire transfer, you’re going to need some information from the recipient, whether you’re looking to send money internationally or not. 

    When it comes to sending money through wire transfers with TD, the bank will require some information, including:

    • Name of the account holder
    • Address
    • Account number
    • Branch number
    • Routing/transit number
    • Institution number

    Just like with other brick and mortar banks, there are some wire transfer fees as well that you will be charged for every transaction.

    If neither of those options works, then the best alternatives for bank-to-bank transfers would be a bank draft or a cheque. With either of these options, there are no limits as to how much you can transfer, and only the recipient can cash the funds. The most reliable method is the bank draft, though, because the funds are automatically withdrawn from your account when the draft is purchased. However, none of these methods allow for recurring transactions or ongoing transactions from the sender’s account. 

    RBC

    Just like with TD, RBC online banking offers the ability to send funds using wire transfer or interac e-transfer. Interac e-transfers are included with your bank account and are the best option if you’re looking to send funds domestically. Wire transfers come with a fee and are best used for international transfers.

    In order to send funds to another institution, you can also use cheques and bank drafts. Bank drafts are often used for large sums of money and cost a total of $9.99. Cheques are purchased in a book of 50, and the cost is based on what type of bank you choose. 

    CIBC

    Sending funds using your CIBC account is actually pretty simple. You can do it all directly from your online or mobile banking. All you need to do is choose whether you want to send an Interac e-transfer or Global Money Transfers. If the recipient's information is already there, then all you need to do is send the funds. If they’re not, then you can quickly add them online. 

    Bank drafts are also an option with CIBC. For just $9.95, you can send as much money as you like. If you’re looking to send smaller amounts, then a traditional cheque is also an option. You can purchase one for $5, but it can be much cheaper to get a book of 50, and then you have them whenever you need them. 

    BMO

    BMO is another Canadian bank that offers the ability to send funds to other institutions quickly and easily. You can do a Global Money Transfer to send the funds internationally, or you can use one of the many free e-transfers to send the money using an interac e-transfer. If those don’t work, there’s also the option of a cheque or bank draft. The cost of a bank draft is $9.95.

    Scotiabank

    If you bank with Scotiabank, it’s also relatively easy to send funds to a different financial institution. If you’re transferring money to another person in Canada, then the best option is a free interac e-transfer. However, if you aren’t comfortable using online banking, you can also write a cheque to the person. 

    If you want to transfer money internationally, then using a global transfer is probably your best bet. How much this costs ultimately depends on how much you’re sending, where you’re sending it to, and whether or not you have an account package that includes global transfers. 

    For any other transfers or for large transactions, one of your best bets is a bank draft. The cost of this is $9.95.

    How To Transfer Your Bank Account to Another Bank

    Transferring your bank account from one financial institution to another is a bit of a process. It starts when you go to a different financial institution to open your new account. From there, you need to transfer all of your direct deposits from your old account to your new account. 

    Once you have everything transferred to your new account, you’ll then need to transfer your money and close the old account. Depending on how much money you need to transfer, you can either write a bank draft or send the money using an interac e-transfer. 

    E-Transfering to Yourself Between Banks

    If you have more than one bank account, you can definitely transfer money to your own accounts with different banks. The easiest way to send money to your own bank accounts is with an interac e-transfer. Plus, if you register for auto-deposit, then the transaction is instantaneous and makes moving money way easier.

    Final Thoughts

    In Canada, the evolution of technology has made transferring money to the same bank or different bank so much simpler. With most large banks, you can send money either by wire transfer or Interac e-transfer. The main difference is that wire transfers are better for international transfers, and e-transfers can only be sent to other Canadian banks. 

    In the case of larger transfers, if you don’t feel comfortable wire transferring or sending through an e-transfer, bank drafts are a good idea. While bank drafts do come with a fee, it’s often worth it since it’s a secure method of transferring funds and is often used for large transactions. No matter how you choose to send funds and how much, most financial institutions are able to accommodate these requests. 

    Online Loans from 9.99%*

    Skip the branch visits, apply online in minutes and get the financing you want today.

    Get a Loan Quote
    TOP

    Subscribe to receive special offers and financial tips

    Subscribe
    Subscribe To Our
    Newsletter

    Receive Special Offers, and Learn Tips and Tricks to Improve your Finances.

    Subscribe