How to switch your account to a new bank

by | Oct 1, 2023 | Finance and Business

Are you considering switching banks? Maybe you found a better deal somewhere else? Here are a few things to remember when transferring bank accounts:

Identify your automated transactions
Before making the switch, identify all your automated transactions. Review your transactions over the past year to identify pre-authorized debits and direct deposits, including those related to your work, pension and benefits.

Transfer your funds to your new account
Most banks have processes in place to help you with transfers. This may include wire transfers, Interac e-transfers and bank drafts. Ask your bank about the best way to transfer your funds to your new chequing and savings accounts.

Set up your direct deposits and pre-authorized debits
Provide your creditors and service providers, such as hydro and internet, with your new banking information for any pre-authorized payments. Also ensure that your employer or pension and benefits providers have your new information. Make sure you have the funds in your new account in time to cover your upcoming payments. This may help you avoid unexpected consequences, like interest and penalties for missed payments.

Review your accounts
Before you close your current accounts, make sure you have access to your new one and that you received your new debit card. You may wish to keep your current accounts open for several months. This may help you avoid unexpected fees related to outstanding cheques and pre-authorized debits you may have missed.

Close your account
To close your current chequing and savings accounts, you must make a request to your current bank and you may have to pay a fee. Check the terms and conditions of your account agreement for information on closing fees.

Learn more about banking at canada.ca/money

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