In this article, we’re sharing how to transfer money between banks in Canada. This will include all of the available methods for both resident and non-resident account holders.
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Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How to Transfer Money Between Banks in Canada?
- How Can I Transfer Money Between Canadian Banks?
- How Do I Open a Canadian Bank Account as a Non-Resident?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
How to Transfer Money Between Banks in Canada?
To transfer money between banks in Canada you can either send an Interac e-transfer, a wire transfer, an electronic funds transfer, a cheque, a bank draft, or a money order. Each method to transfer money has different fees, restrictions, drawbacks, and timing. So, it’s important to consider your needs before deciding on the method that is best for you.
That said, in most cases, Interac e-transfer is the fastest and most cost-effective way to transfer funds between banks compared to a money order vs bank draft. However, if you are sending larger amounts above daily transfer limits, or if you are sending money to or from outside of Canada, other alternatives should be considered.
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How Can I Transfer Money Between Canadian Banks?
As mentioned, there are several ways to transfer money between Canadian banks. In this section, we’ll take a look at a few of the most popular options, along with their pros and cons.
Online Banking
When it comes to sending money via online banking between Canadian banks, the most cost-effective option is an Interac e-transfer. In most cases, e-transfers have a daily limit of CAD 2,000. However, they are free and immediate. Additionally, if the recipient has direct deposit enabled on their account, funds can be sent without the recipient needing to accept the deposit.
Wire Transfers
Wire transfers are another popular method for sending money between Canadian banks. However, like elsewhere in the world, banks charge transfer fees for sending wires. The exact charge for a wire will depend on the bank. But, it’s important to note that Canadian banks typically charge a wire when sending and receiving a wire. So, both parties in a wire transfer will be charged for the transaction. Additionally, unlike Interac e-transfers, wire transfers are not immediately available and usually take two business days to clear.
Alternative Ways for Transferring Money
In addition to online transfers and wire transfers, individuals can also consider sending money via money orders, cheques, or bank drafts. That said, these options are typically reserved for special situations or large transfers.
How Do I Open a Canadian Bank Account as a Non-Resident?
Of course, the first step in being able to send money from a Canadian bank account is having a Canadian bank account. With this in mind, let’s take a look at the requirements you will need to open an account in Canada as a foreign non-resident.
Requirements for Opening a Non-Resident Canadian Bank Account
- Canadian address
- Canadian phone number
- Passport (foreign or Canadian)
- Government-issued ID (foreign or Canadian)
- Qualifying deposit
- Be willing to visit a branch in person
If you can meet these requirements, banks in Canada will open an account for most individuals. However, it’s important that you look to open accounts with banks that provide the services you need and (where possible) understand your client profile.
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking into how to transfer money between banks in Canada. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Is the Best Way to Transfer Money Between Banks?
The best way to transfer money between banks depends on the amount of money being sent and whether you are prioritizing cost, delivery time, or ease of use. In most cases, when sending money between Canadian banks, Interac e-transfer is the most cost-effective and fastest way. But, when sending larger transfers, e-transfers are not necessarily suitable because of daily limits.
How Do I Transfer Large Amounts Between Banks in Canada?
To transfer large amounts between banks in Canada, most individuals choose to issue cheques or bank drafts. However, depending on the amount, wire transfers can be a cost-effective solution as well. That said, if the amount is less than the daily allowance for Interac e-transfers, this would be the most effective option available.
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