There is plenty to know about how to transfer money between banks in Canada. There are numerous reasons to transfer and deposit funds in banks. We are here to help you choose the best option for your needs.
In this article, we will provide 10 different methods to transfer money between banks in Canada along with some methods for international money transfers. We will also provide some of the best bank accounts in Canada with free e-transfers and some tips for transferring money between banks in Canada.
10 Methods To Transfer Money Between Banks in Canada
If you need to know how to transfer money between banks in Canada, you are at the right place. There are many ways to transfer money between bank accounts in Canada. Here are 10 different methods to transfer money between banks in Canada:
1. Interac e-Transfers
Interac e-transfer is one of the best ways to transfer money between banks in Canada. It is super-fast, simple, and inexpensive. Interac e-transfers are electronic funds transfers assisted by Interac, an online payment system.
|Payment time||Nearly instant, usually within 12 hours or less.|
|Information needed for an Interac e-transfer||Recipient’s phone number or email address|
|Fees||Free to receive an Interac e-transfer|
|Many checking accounts offer free monthly e-transfers. But your bank may charge you for an Interac e-transfer. You can be asked to pay up to $1.50 per transfer.|
Financial institutions usually have limits on how much money you can send via an Interac e-transfer. So, you need to ask your bank or credit union if you’re sending a significant amount.
Normally, the process of sending an Interac e-transfer is determined by your bank. However, these are the steps you need to follow:
- Log in to your bank’s online platform or mobile banking app.
- Look for “send money” or “send an Interac e-transfer”.
- Provide the recipient’s email address, phone number, and the amount.
- Select “send”.
The money will be deposited instantly if the recipient has enabled the auto-deposit feature. Otherwise, you’ll have to produce a security question. And the recipient will have to answer the question to access the funds. After the recipient receives the funds, you will receive a confirmation email that your recipient has accepted your Interac e-transfer.
When you’re sending money to your own account, you have to log in to your banking mobile app or website. You will need to give an answer to the security question to access the funds. The security question can also be found in your email.
Nearly all banks and credit unions in Canada are partners with Interac to provide Interac e-transfers. Customers send money to each other’s accounts from the same or different banks within Canada. Presently, there are more than 250 financial institutions in Canada offering Interac e-Transfers, including the following:
|TD Canada Trust||National Bank||Simplii|
|CIBC||HSBC||Coast Capital Savings|
|RBC||First Nations Bank||Meridian Credit Union|
|Tangerine||Servus Credit Union Ltd.||Vancity Credit Union|
|Assiniboine Credit Union||Steinbach Credit Union|
2. Money Transfer Apps
How to transfer money between banks in Canada? Another way to transfer money between banks in Canada is to use money transfer apps. Such as PayPal, XE, Wise, or Wealthsimple Cash App. You can send and receive money electronically with the help of these mobile apps. But, both the sender and receiver must have accounts on these platforms to transfer money. Each app has its own process for funds transfer. Transfers are very fast (0-24 hours), often immediate.
|Cost of transfers (Depends on the platform)|
|PayPal||No fees to send or receive money locally through your PayPal account.|
|XE||XE charges a small fee for some transfers, depending on the amount you’re sending.|
|Wise||No fees to receive money. But you need to pay a percentage-based fee for sending money.|
|Wealthsimple Cash App||No charges for sending or receiving funds through the app.|
PayPal, Wise, and Wealthsimple Cash App can be used to transfer funds within or outside of Canada. XE is commonly used for international transfers.
Here are the basic steps that you need to follow for transferring funds through PayPal, XE, Wise, or Wealthsimple Cash App:
To send funds through PayPal:
- Sign up online
- Download the app
- Tap on “Send and Request”
- Enter the amount to transfer
- Enter the recipient’s email or mobile number
- Select “send”
To send funds through XE:
- Download the app
- Sign up
- Provide the currency you are starting with and the currency to convert to
- Enter the amount of the transfer
- Give the recipient’s name and banking details
- Pay for the transfer
- Review details and click “Confirm money transfer”
To send funds through Wise:
- Download the app
- Sign up
- Go to the home screen
- Select “Send Money”
- Give the amount you want to send
- Select the type of transfer
- Enter your personal details
- Provide the recipient’s bank details and email address
- Review details and select “how to pay”
To send funds through the Wealthsimple Cash App:
- Log in to the Wealthsimple mobile app
- Click on the Card icon at the bottom of your screen
- Choose “Send or request”
- Click on “Send Money”
- Choose “Wealthsimple Cash”
- Choose a contact
- Give the amount that you want to send
- Tap “Next”
- Write a message or add an emoji
- Swipe up to send
3. Wire Transfers
Sending money with a wire transfer is quite easy. It can be done by phone, online, or at a bank branch. You can use wire transfers to send money domestically as well as internationally.
|Information required for a wire transfer||Recipient’s name, address, bank account number, financial institution number, routing information, and branch transit number.Sometimes SWIFT code or BIC code too.|
|Payment time||1 to 3 days.May take several days sometimes.|
|Fees||Hefty fees, typically range from $15 to $80|
The fee depends on the financial institution. However, it remains the same irrespective of the transfer amount. Also, you can transfer larger amounts than many other transferring methods. Wire transfers are not suitable for small amounts. But, for larger amounts, they can be a good option.
In Canada, some banks only offer wire transfers to the U.S. or a limited number of countries. So, make sure your recipient’s country is allowed for the transfer.
A lot of banks don’t allow wire transfers online. They need you to visit their branch. It’s a better idea to check your bank’s policies. Scotiabank allows you to send money through wire transfer online. But most of the banks require you to visit a branch of your bank.
4. Electronic Funds Transfers (EFTs)
Electronic funds transfers are also known as direct deposits. EFTs are used to send money online from one bank account to another. You can easily set up EFTs as recurring deposits. This makes them a practical choice for those who want to automate bill payments or transfer funds on a predetermined schedule. An electronic funds transfer is fast, easy, and protected. A lot of employers use EFTs to pay their employees. You can send direct deposits through a bank’s online platform or mobile app.
|Information required for EFTs||Recipient’s bank account number, financial institution number, branch number, and transit number|
|Fees||No fees to receive an EFTYour bank may charge a sending fee.|
|Payment Time||1-3 business days|
A cheque is one of the oldest ways to transfer money between banks. You can write a cheque to your recipient. They can either withdraw the funds or deposit them into their account.
You can also obtain a certified cheque at your bank branch. Certified cheques are assured by the issuing financial institution. This means that your bank confirms that you have the funds in your chequing account. Also, your bank puts a hold on the funds before issuing the certified cheque.
|Information to fill in a cheque||Recipient’s full name, date, and amountAlso, you need to sign the cheque to endorse its validity.|
|Payment Time||1-7 business daysUsually takes several days to clear|
|Cost||Normally, it’s free.The fee for personalized cheques varies depending on your bank and cheque style.Certified cheques cost $10 to $20.|
|Fee||No fee associated with writing or depositing a cheque.|
The recipient can deposit a cheque at their bank, by ATM, or in their mobile banking app. If you need to transfer money between your own bank accounts, you can do it with your mobile banking app.
6. Bank Drafts
A bank draft works almost similar to a regular cheque. However, the bank draft is issued directly by the bank. And it has a guarantee that the funds are available, as against a regular cheque, which could bounce. When you get a bank draft, funds are withdrawn from your account instantaneously. These funds are then held in a reserve account.
Just like certified cheques, bank drafts are also issued and assured by financial institutions. Mostly, bank drafts are used for large payments. That’s why there is no maximum limit on bank drafts. Moreover, they are available in many different currencies. So, they can also be used for international transfers.
You need to get a bank draft by going to a physical branch of your bank. After obtaining the bank draft, you are responsible for delivering the bank draft to the recipient. The recipient can cash the bank draft at their bank. Some banks allow you to request a bank draft online.
The fee for issuing a bank draft varies with the bank. Typically, it is not more than $12.
7. Money Orders
A money order is a safe substitute for cash or cheque. You can purchase money orders at banks, credit unions, Canada Post outlets, and other financial institutions. They indicate a guaranteed payment because the money is already paid by the person who is sending the money order.
Unlike bank drafts and certified cheques, you can purchase a money order even if you don’t have a bank account. So, if you have money, you can have a money order. It is that simple. Moreover, sending a money order is a lot safer than sending cash.
A money order can be a great option:
- Where a cheque is not acceptable for payment.
- When you’re sending funds through the mail and don’t want to risk sending cash.
- If you don’t have a bank account.
The fee for a money order varies by financial institution. However, Canada Post charges a fee of $8.50 per money order.
8. Standing Order
A standing order is a payment method that you can set up with your bank either online or in person. Standing order helps you to make automated payments at intervals, like weekly, monthly, yearly, etc. Payments will not stop until you cancel them.
You can visit your bank branch or give them a call to set up a standing order. Standing orders are used for loan payments, rent payments, utility bills, or charity. They are also used to send money to family and friends regularly.
|Payment Time||Made automatically on specified dates|
|Information needed for a Standing Order||Recipient’s bank details, transit number, institution number, and the amount you need to send.Also, you need to provide the frequency of payments.|
However, it is important to make sure that you have sufficient funds in your account at the time of payment. Otherwise, you will be charged with a heavy non-sufficient funds fee (NSF fee). Moreover, the transfer will fail resulting in missed payment.
You can’t use standing orders to transfer money to different bank accounts. They are limited to the accounts within the same bank.
9. Pre-authorized Debits (PADs)
Pre-authorized debits are also used for recurring and automatic payments. You can set up pre-authorized debits in advance for ongoing transactions. Such as utility bills. It is a secure online self-service payment method. In a pre-authorized debit transaction, you give the billing company permission to withdraw funds from your bank account on the date, or dates, you choose.
You need to fill out a form to set up a PAD. You can set up a PAD and forget about the recurring payments that you have to make at intervals. Individuals and businesses pay their taxes through pre-authorized debit (PAD) service. You set the payment amount and allow the Canada Revenue Agency (CRA) to withdraw funds from your account on the specified date or dates. PADs can also be used to pay for mortgage payments, insurance premiums, utility bills, or credit card payments.
The pre-authorized debit service is free of cost.
10. Cash Deposit
The last option to transfer money between banks in Canada is to deposit cash at a bank. The process is the same either you’re depositing into someone else’s bank account or into your own bank account. In case of depositing into your own account, you are the recipient and you need to fill out your details.
|Payment Time||Instantly available for the recipient|
|Information required for a Cash Deposit||Recipient’s full name, address, bank account number, bank name, and the amount you wish to deposit|
Depositing into your own account is quite easy and straightforward. However, depositing cash into someone else’s account can be tricky. Sometimes, people are not comfortable giving their information to others. So, you can just physically give cash to the recipient in this case and they can deposit it themselves.
Here are some features of Cash Deposits:
- You can deposit cash into someone’s bank account even if you don’t have one.
- You don’t need to have an online account to deposit cash.
- You need to visit a physical branch or ATM to deposit cash.
- Carrying cash can bring security risks.
International Money Transfers In Canada
Now that you know how to transfer money between banks in Canada, it’s time to comprehend the international money transfer methods available in Canada. International money transfers are rather more complicated than domestic money transfers. Especially, for larger amounts, this can be tricky. However, there are many methods to transfer money internationally. Most of the international money transfer methods charge a fee to either the sender or the receiver, sometimes both. The payment time can vary depending on the method you choose. Typically, it is from 1 to 14 business days.
Some of the international money transfer methods are:
International Money Transfer Apps
These services make international transfer very easy and seamless. Your amount will be converted into the intended currency within seconds. Some of the international money transfer app services are given below:
It is recognized worldwide. Your international transfer will be as smooth as possible. But there will be a small fee. The maximum limit is $60,000 for PayPal international transfers.
It is free and quite easy to use. There will be a fee too. The fee varies depending on the amount, payment method, and the intended currency. You can send up to $1 million using Wise.
It is one of the most popular apps used in Canada to transfer funds internationally. There is no open fee. But the conversion fee will be a little higher than the average. You can send $500,000 at a time with XE.
International Wire Transfer
International wire transfers are almost the same as domestic transfers. However, you have to provide a little bit more information. You’ll need to visit your bank branch and get a wire transfer request form. To fill out his form, you will need:
- Your bank account information
- Your contact information
- The amount that you wish to transfer
- Recipient’s contact information
- SWIFT Code or BIC Code
- IBAN of the recipient’s bank
- Recipient’s bank account number, institution number, transit number, or routing number
After you fill out the form, you’ll need to submit it to your bank. Then pay the fee and the funds transfer procedure will be started.
International Bank Drafts
International bank drafts are the most protected cheques accepted in most countries. With a regular cheque, there is a risk that the cheque could bounce. Also, there’s no guarantee that there are enough funds in the bank account of the sender. Moreover, the funds are not withdrawn from the sender’s account until the cheque clears.
On the other hand, bank drafts are guaranteed and more secure way. The funds will be deducted from the sender’s account upfront and will be transferred to a reserve account. This guarantees the payment for the recipient.
There is also a fee associated with international bank drafts. Also, it can take a few weeks to complete the transfer. You can visit your bank branch and ask to send an international bank draft. You’ll have to provide the recipient’s name and address along with the amount that you wish to send.
International Money Transfer Services
There are many international money transfer services specially designed to help you send money around the world. It will take from a few seconds to a few days to transfer funds internationally. It depends on your recipient’s location, the funding method for the transfer, and the receiving method of the recipient.
Here are the top 5 international money transfer services available in Canada:
|Currencies Direct||No transfer feesHighly reasonable exchange ratesIndividual currency expert support|
|XE Money Transfer||Internationally secure serviceFast and easy to useMultiple payment methods are available|
|OFX||Brilliant rates50+ countries allowed24/7 customer support|
|SEND||Fast transaction speed40+ countries allowedNo hidden charges|
|TransferWise||Ideal for small payments52 currencies allowedMulticurrency card available|
Subject to the international money transfer service you choose, your transfer will be funded by any of the following:
- Bank transfer
- Debit card
- Credit card
The funds you transfer can be accessed by the recipient in many ways. Like:
- Directly in their bank account
- Directly in their mobile wallet
- Pickup at an agent outlet
Fees will vary by the money transfer service you select. It depends on the recipient’s location, intended currency, funding method for the transfer, and receiving method of the recipient.
Tips For Transferring Money Between Banks In Canada
There is a lot to know about how to transfer money between banks in Canada. Here are some useful tips that you must consider while transferring money in Canada:
- Compare bank fees and currency conversion rates of different banks. These can significantly impact the total cost of transferring funds.
- Never send money to any stranger. Don’t respond to emails requesting for funds transfer unless you know the person.
- You must inquire about the fees for fast-tracked transfers. It can take from minutes to days for a transfer to complete. If you know about fast-tracked transfers, it can be useful for you in some scenarios.
- You must learn about e-transfer scams. If you have any doubts about transferring funds to someone, you can visit the Canadian government’s website or Canada’s Anti-Fraud website to get useful information. These websites can help you learn about e-transfer scams and how to protect yourself from them.
- You must confirm if a transfer is complete or not.
What Are The Best Bank Accounts In Canada With Free e-Transfers?
Here are some best chequing and savings accounts with free e-transfers:
|Best Chequing Accounts with free e-transfers|
|Simplii No Fee Chequing Account||Monthly Account Fee: $0Free Transactions: UnlimitedNo minimum deposit requirementsSimplii is an online-only provider|
|BMO Performance Chequing Account||Monthly Account Fee: $16.95Free Transactions: Unlimited|
|National Bank Modest Chequing Account||Monthly Account Fee: $10.95Free Transactions: 30 per monthLimited transactionsThere’s a fee for branch transactions|
|RBC Signature No Limit Banking Account||Monthly Account Fee: $16.95Free Transactions: UnlimitedFree Interac e-Transfers|
|Best Savings Accounts with free e-transfers|
|Simplii High-Interest Savings Account||Interest Rate: 6%Account Fee: $0Transaction Fee: $0No physical branches for in-person service|
|EQ Bank Savings Plus Account||Interest Rate: 3%Account Fee: $0Transaction Fee: $0No physical branches for in-person service|
|Mydoh Smart Cash Card||Monthly Fee: $2.99Transaction Cost: $0Rewards: 1-month free trial + $15Backed by RBC, a major Canadian bankTeens can’t deposit cheques or cash into their Mydoh account and also can’t withdraw or deposit using ATMs.|
|Neo Money Account||Interest Rate: 2.25%Account Fee: $0Transaction Fee: $0No minimum balance requirementNo physical branches for in-person service|
|KOHO Earn Interest||Interest Rate: Up to 4.50%Account Fee: $0Transaction Fee: $0Earn cashback on purchases|
How Much Does It Cost To Transfer Money Between Banks in Canada?
The total cost to transfer money between banks in Canada depends on the following:
- Your chosen method: Some methods are free while others are not.
- Particular bank charges: Every bank is unique when it comes to bank charges.
- Amount: The more money you send, the more will be the cost of sending.
- Discounts and Promotions: There may be some discounts or promotional offers that can reduce the total cost of sending money.
What Is The Fastest Way To Transfer Money Between Banks In Canada?
Interac e-transfer is the fastest way to transfer money between banks in Canada. Also, other online payment methods like PayPal or Wise fall into this category. These digital services are fast for various reasons. Like:
- You don’t have to visit a bank branch.
- You don’t need to make a phone call to your bank.
- These services are easy to use.
- You can transfer funds in minutes.
Although these services are not free, still they are quite economical. Moreover, these are incredibly safe as well because these services are regulated by official financial bodies in Canada.
All things considered, the Interac e-transfer is our recommended method. It is reliable and safe. Also, the transfer can be completed with your bank account.
So, that was everything on how to transfer money between banks in Canada. The Interac e-transfer is our recommended method. However, you can choose either method according to your needs and convenience. Make sure you follow the provided tips on how to transfer money between banks in Canada. Whether you’re sending money domestically or internationally, you can refer to this comprehensive guide.
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