How to switch banks in Canada, step by step
Quick summary
Open the new account first. Then move your pay and your automatic bills, wait for old cheques to clear, and only then close the old account. Closing too early can cause missed payments and bounced-payment fees. To compare what banks charge, read bank fees in Canada.
Checked November 3, 2026. Main source: GetSmarterAboutMoney.ca: How to close a bank account, updated September 22, 2023 (checked November 3, 2026). See all 2 sources.
The six steps
| Step | What to do |
|---|---|
| 1. Open the new account | Do this before you touch the old one, so no deposit or payment is missed. |
| 2. Move direct deposits | Give your employer the new account details. If the government pays you benefits or a tax refund by deposit, tell them too. |
| 3. Move automatic payments | Send the new account details to every company that takes money from you automatically. Your bank may help with this. |
| 4. Stop using cheques | Stop writing cheques from the old account. Make a list of any that have not been cashed yet. |
| 5. Watch both accounts | Check statements or online banking to see that every deposit and payment moved, and that old cheques have cleared. |
| 6. Close the old account | Ask the bank how long closing takes and if there is a fee. Then move the money you have left to the new account. |
Source: GetSmarterAboutMoney.ca (Ontario Securities Commission), How to close a bank account, last updated September 22, 2023, checked November 3, 2026.
Why you should not close the old account first
If an automatic payment hits the old account and there is not enough money, you can be charged a bounced-payment (NSF) fee. The guide above says it is better to pay a little extra for a short time than to miss payments.
Since March 12, 2026, federally regulated banks can charge at most $10 for an NSF fee, but you still want to avoid it.
Why people find switching hard
The Financial Consumer Agency of Canada (FCAC) says the effort of moving accounts and automatic payments can stop people from switching. It also says bundled plans and complex fees make prices hard to compare. Source: FCAC review of banking fees, updated October 23, 2026.
A short checklist helps. Write down every deposit and every automatic payment before you start, and tick them off as they move.
Before you switch
- Read the fee schedule of the new account, including the monthly fee and what it takes to waive it.
- Ask the new bank if it has any sign up offer, and read the conditions.
- Check if you hold a registered account, such as an RRSP. Moving it out can have a transfer fee, so ask first.
- Keep your old account open until the last payment has moved.
- Do not move to a joint account without talking to the other person first.
Questions people ask
How do I switch banks in Canada?
Open the new account, move your direct deposits and automatic payments, stop using cheques on the old account, watch both accounts, and close the old one last.
Should I close my old bank account first?
No. Close it last. If a payment hits a closed or empty account, you can be charged a bounced-payment fee or miss a payment.
How long does it take to switch banks?
It depends on how many deposits and payments you have to move. Keep the old account open until the last one has moved.
Is there a fee to move a registered account, like an RRSP?
There can be. The FCAC lists transfer-out fees for registered products among common bank fees, so ask your bank before you move one.
Is there a fee to close a bank account?
It depends on the bank. Call and ask how long closing takes and if there is a fee before you start.