How to change banks if you already have an account?

Why you might need to change banks

There are many reasons why you might decide to change banks: poor service, high fees, moving, a change in circumstances, or a desire to take advantage of better terms. In Calgary, where both large national banks and local credit unions and online banks operate, the transition process requires planning and attention to avoid financial complications.

Main reasons for changing banks

  • Financial conditions — lower fees, higher interest rates, favorable loans.
  • Quality of service — speed of support, convenience of apps, absence of technical problems.
  • Geography — convenient location of branches and ATMs.
  • Digital services — convenience and functionality of mobile and online banking.

Planning the transition

  1. Inventory of accounts — list of all products and services (accounts, loans, investments, automatic payments).
  2. Identification of automatic transactions — deposits (salary, payments, dividends) and payments (mortgage, utilities, subscriptions).
  3. Choose a bank — consider branch locations, digital services, fees, and interest rates.

Choose a new bank

  • National banks (RBC, TD, Scotiabank, CIBC, BMO) — large network, wide range of services.
  • Provincial banks and credit unions (ATB Financial, Servus Credit Union) — personalized service, favorable terms.
  • Online banks (Tangerine, Simplii Financial, EQ Bank) — no fees, high interest rates on savings.

Opening a new account

  • You will need two documents (passport, driver's license, PR card, health card).
  • Activate online banking, mobile app, automatic notifications, and overdraft protection.
  • The first deposit can be made via electronic transfer.

Transferring funds

  • Interac e-Transfer — for small amounts.
  • Wire transfer — for large amounts (15–25 CAD commission).
  • Bank draft — for withdrawing large amounts of cash.
  • Direct electronic transfers — between banks with no commission, but with a 3–5 day waiting period.

Automatic payments and deposits

  • Change your salary and payment details through your employer or government portals.
  • Update your details with your service providers (utilities, mobile, subscriptions).
  • Plan changes in advance — sometimes it takes several payment cycles.

Transferring investment accounts

  • RRSPs and TFSAs must be transferred directly between institutions.
  • Fees of CAD 25–150 may apply, which are sometimes reimbursed by the new bank.
  • Avoid withdrawing funds from your TFSA for the transfer — this may have tax implications.

Getting started with digital services

  • Set up two-factor authentication.
  • Enable notifications for all transactions.
  • Check the functionality of the mobile app (check deposits, transfers, bill payments).

Transition period

  • Maintain a balance in your old account to cover payments.
  • Keep a table of account details changes.
  • Check transactions on both accounts daily for the first few weeks.

Closing your old account

  • Wait 3–6 months after the last transaction.
  • Make sure the balance is zero.
  • Get written confirmation of closure.

Special cases

  • Loans and mortgages often cannot be transferred without refinancing.
  • Joint accounts require the consent of all owners.

Financial implications

  • Potential savings of over CAD 200/year in fees.
  • Possible closing and transfer fees.

After the switch

  • Active monitoring for the first few months.
  • Regularly reevaluate the bank's terms and conditions.
  • Consider integrated financial products.

Conclusion: Switching banks in Calgary requires careful preparation, but can significantly improve your financial situation and service conditions.