How to Transfer Money Between Banks in Canada

Transferring money between different banks in Canada is a common financial activity for individuals and businesses alike. Understanding the various methods available simplifies these transactions, whether managing personal finances, making significant purchases, or sending funds to family. Canadian financial institutions offer several secure options for moving funds, each with distinct features regarding speed, cost, and necessary information. This guide provides an overview of how to effectively manage these interbank transfers within Canada.

Common Transfer Methods and Their Requirements

Several methods facilitate money transfers between Canadian banks, each suited for different needs regarding speed and security. Interac e-Transfers typically complete transfers almost instantly or within 30 minutes. These transfers are ideal for everyday amounts and often come with low or no fees, depending on the bank and account type. To send an Interac e-Transfer, you need the recipient’s email address or mobile phone number, along with a security question and answer if auto-deposit is not set up.

For larger sums or when a guaranteed payment is required, wire transfers and bank drafts are common choices. A wire transfer electronically moves funds directly between bank accounts. Domestic wire transfers in Canada process within a few hours to one business day. Sending a wire transfer costs between CAD 10 and CAD 50, with fees varying by bank and whether the transfer is domestic or international. To initiate a wire transfer, you will need:
The recipient’s full name and address
Their bank’s name and address
The bank account number
The 5-digit transit number
The 3-digit financial institution number

Bank drafts function similarly to cheques but are guaranteed by the issuing bank, as the funds are immediately withdrawn from your account and held by the bank. They are used for significant payments like down payments on property. Obtaining a bank draft costs around CAD 9.95 to CAD 25. To acquire a bank draft, you must provide the recipient’s full name and potentially their address, as this information will be printed directly on the draft.

Certified cheques offer another guaranteed payment option, where the bank verifies the availability of funds in your account and places a hold on that amount. While similar to bank drafts, some major Canadian banks have phased out certified cheques for personal accounts in favour of bank drafts or electronic transfers. If available, certified cheques cost between CAD 10 and CAD 25. To request a certified cheque, you must visit your bank branch with your identification, and the bank teller will confirm funds and certify your personal cheque.

Initiating Your Chosen Transfer Method

For an Interac e-Transfer, begin by logging into your online banking portal or mobile banking application. Navigate to the “e-Transfer” or “Send Money” section within the platform.

Select the recipient from your contacts or add them using their email address or mobile phone number. Input the amount you wish to send, up to a daily limit of CAD 3,000 to CAD 10,000, and include a security question and answer if required. After reviewing the details, confirm the transaction.

To send a domestic wire transfer, you will need to visit your bank branch in person. Provide the bank representative with the recipient’s banking details. You will also specify the amount to be transferred and confirm any associated fees, which range from CAD 10 to CAD 50 for domestic transfers. The bank will then process the transfer, directly debiting the funds from your account.

For a bank draft, visit your financial institution’s branch. Inform the teller that you wish to obtain a bank draft and provide the exact amount and the full name of the intended recipient. The bank will withdraw the specified funds from your account, along with the applicable fee, which is around CAD 9.95. The bank draft, a physical document resembling a cheque, will then be issued to you with the recipient’s name printed on it, ready for you to deliver to them.

Similarly, if you opt for a certified cheque, you must go to your bank branch. Present the cheque you have written to the teller, along with your identification. The teller will verify that sufficient funds are available in your account to cover the cheque amount and will then certify it with a stamp or signature. A fee, between CAD 10 and CAD 25, will be charged for this service. The funds will then be put on hold in your account, guaranteeing the payment to the recipient once they deposit the certified cheque.

Confirming and Tracking Your Transfer

For Interac e-Transfers, you will receive an email or text notification confirming that the funds have been sent and that the recipient has been notified. You can also check your online banking transaction history, where the e-Transfer will appear with a status indicating whether it has been deposited.

For wire transfers, domestic transfers are completed within a few hours to one business day, while international transfers may take longer. Your bank’s online banking platform or a call to their customer service may allow you to confirm the status of the transfer.

Bank drafts and certified cheques, being physical documents, require direct delivery to the recipient. Once the recipient deposits the bank draft or certified cheque, it can take one to four business days for the funds to be fully processed and available in their account. You can confirm that the funds have been debited from your account by checking your transaction history.