When you opened your first bank account, it was likely with the same institution your family used. Many Canadians stay loyal to their first bank: a 2021 Ratehub.ca survey found that 70% of Canadians kept the same bank account for 11 years or more, and 80% had never switched accounts despite potentially paying higher fees than necessary. As your financial life evolves, it’s worth asking whether your bank still fits your needs.
Life changes — careers, relationships, income, financial goals — so your banking needs can change too. Switching banks can lower fees, provide better service, unlock different products, or give you clearer insights into your spending if a new institution has a superior financial app. Below is a practical guide to deciding whether to move and how to make a smooth transition.
How to know when it’s time to switch banks
Start by researching competitors. Many banks — especially online banks — offer welcome incentives like cash bonuses or reward points for new customers. Beyond short-term perks, switching can reduce monthly account fees, broaden access to financial products, and improve customer service or digital tools. Compare offerings and incentives, but also evaluate long-term value: fees, interest rates, and the quality of advice you receive.
Is your bank still meeting your needs? Questions to ask yourself
Review the entire relationship: service, costs, advice, and security. Ask yourself the following to determine whether staying or leaving makes sense.
- Do you still need in-branch service, and are branch hours and locations convenient? Or is full online banking sufficient for your lifestyle?
- How is customer service across channels — in person, by phone, and by chat? Have long wait times or unresolved issues been a recurring problem?
- Does the bank offer the product mix you need? Some institutions bundle services to reduce fees; ask your bank if such programs are available.
- Does the bank support joint accounts if you want to share finances with a partner, roommate, or family member?
- Could you pay lower fees elsewhere? Compare one-time and monthly charges across institutions.
- Do you trust the advisors you’ve been dealing with? Keep in mind advisors may recommend only the products their bank sells, so consider picking services from different providers if necessary.
- Is the institution secure and properly insured? Confirm membership in the Canada Deposit Insurance Corporation (CDIC) and review the bank’s measures for protecting client data from fraud and cyber threats.
Use this checklist to weigh whether your current bank still delivers value or if the benefits of moving outweigh the effort.
Combining finances with another person
Switching banks can make sense when combining finances with a partner or family member. When accounts are spread across multiple banks, transferring money, coordinating bills, and getting a consolidated view of finances can be awkward and time-consuming. Consolidating accounts under one institution simplifies transfers, reduces the number of logins to remember, and can make joint budgeting and bill payments easier.
My husband and I bank with two different institutions and regularly notice differences in service and digital features. Bringing accounts together made it easier to move money and track our shared cashflow. If you’re considering combining finances, visit both banks to compare offerings and service firsthand before deciding.
You can also shop beyond two banks: compare fees, digital tools, interest rates, and customer service. MoneySense maintains regular rankings and tools to help with comparisons, such as lists for the best banks, credit cards, chequing and savings accounts, high-interest savings, mortgage rates, rewards debit cards, student credit cards, RRSP and TFSA options, robo-advisors, and FHSAs.
- The best banks in Canada
- The best credit cards in Canada
- The best chequing accounts in Canada
- The best savings accounts in Canada
- The best high-interest savings accounts in Canada
- The best mortgage rates in Canada
- The best rewards debit cards in Canada
- The best student credit cards in Canada
- The best RRSP rates in Canada
- The best FHSAs in Canada
- The best TFSAs in Canada
- The best robo-advisors in Canada
How to switch banks in 4 simple steps
If you’ve decided to move, the process is straightforward when planned. Follow these steps to switch banks in Canada with minimal disruption.
Step 1: Open an account with the new financial institution
Open your new account online, by phone, or in branch. Typical requirements include photo ID (driver’s licence or passport), your Social Insurance Number (SIN), proof of address, and contact details. Students may need to provide a student card, acceptance letter, or graduation date. Some banks require an initial deposit, so have funds available for transfer or deposit.
Step 2: Transfer money to your new account
Move your funds from the old account to the new one. For small amounts, Interac e-Transfer to yourself is convenient but subject to limits. For larger balances, contact your current bank to arrange a full transfer by branch or over the phone.
Step 3: Set up direct deposits and bill payments
Make a list of all direct deposits tied to your old account and update your employer or clients with your new banking details to avoid interruptions. Review your payee directory and re-establish recurring bill payments — cell phone, utilities, credit cards, subscriptions — and replicate any automated transfers between accounts with your new bank.
Step 4: Close your old account
Wait several weeks after moving everything over to ensure deposits and payments clear with the new bank before closing the old account. Closure methods vary; you might be able to close online, by phone, or by visiting a branch — bring ID if you go in person. Be aware of possible fees such as account-closing fees, transfer fees, inactivity fees, or overdraft charges, and ask if the bank will waive them.
Pro tip: If you have a long-standing credit card with your old bank that charges an annual fee, consider downgrading to a no-fee card and keeping the account open rather than cancelling it. Closing a long-held card could negatively affect your credit score.
So, should you switch banks?
If your research shows your current bank still meets your needs, you can negotiate better terms such as lower monthly fees or higher interest on savings. If another bank offers clearer benefits — lower fees, better service, or digital tools that match your lifestyle — the upfront effort to switch can pay off for years to come. A better fit now can lead to savings, improved service, and a clearer financial picture that benefits you over the long term.
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