Transfer money in Canada

How to Transfer Money between Banks in Canada

Online banking in Canada has simplified the process of transferring money from bank to bank. It is more convenient to move funds from one bank to another via electronic means with a few financial tools.

Although each option has its advantages and drawbacks, they ultimately get the job done. Read on to find out the various ways to transfer money between banks in Canada.

Cash Transfer

Today, most banking transactions are carried out electronically and online, but you can still transfer funds in cash. Withdrawing and depositing cash isn’t always a fantastic idea, especially when you’re transferring considerable sums of money, but it could be the best choice in some circumstances.

Cash can also be an excellent option if you need to move the money at once. To avoid service charges, withdraw the funds in person. If you withdraw funds via ATM, you may be subject to transaction fees. Also, ATMs often have withdrawal limits, and the same goes for personal accounts.

Bank to Bank Transfer

If you own multiple bank accounts, then a bank-to-bank transfer is an excellent idea. You can set up the transfer using either the sending or receiving bank with the funds arriving at its destination within 48 hours to 72 hours.

The time of arrival varies from bank to bank, but it’s often quicker domestically than internationally. Many banks provide free transfers between linked accounts, but it’s always good to err on the side of caution, so check to make sure.

Before you consider bank-to-bank transfer, ensure you link both accounts. Doing this can take seven days, so ensure it is done before attempting a transfer.

How to link your bank accounts

  • Log into your sender bank account dashboard and find the feature “add account” or “add external account” or “link account.” You might see these options or something similar in your bank’s transaction menu. 
  • You need to enter the recipient bank’s routing number, including your account number at the bank. If the number is inaccessible, you can get it from a check, bank rep, or online account.
  • Once you submit the information, you’d likely have to verify that the external account is yours. Provide the username and password for that account or by testing a transfer between both banks. The latter is easier if the two bank accounts are in your name. However, transferring money to another person may require the use of third-party apps like PayPal or transfer by wire. Consult your bank for the most viable solution.

Apps and Online Payment Solutions

If your bank doesn’t have bank-to-bank transfer features and you want to send money to another person, your other option is a person-to-person transfer. You can start by linking your account to the app, using your bank account and routing number similar to linking two bank accounts.

For instance, if you’re using Stripe or PayPal, the money sent emanates from your account; PayPal now transfers the money into the receiver’s PayPal account before they can spend the money through PayPal or forward it to a bank account. Some of the options include:

  • PayPal is the benchmark for P2P transfers. It is also one of the most convenient to use because of its popularity worldwide. That means the sender and receiver are likely to own active PayPal accounts. PayPal doesn’t charge a fee to transfer between friends and family if the money emanates from your bank account. However, transferring funds through your credit card, debit card, or PayPal credit may incur charges. Businesses may also be subject to transaction charges if they provide payment options Vai PayPal for the customers.
  • Most bank accounts in Canada offer free Interac e-Transfers or other similar services. These services are included in your chequing account package forming part of the features. You can search for personal payments or a similar feature once you’re logged into your account.
  • Venmo is another financial tool, a subsidiary of PayPal, which you can use to transfer money. It has zero charges except if you’re transferring money from your credit card.

Wire Transfer

If you want to transfer funds into another person’s account, and you need to do it fast, wire transfer is likely your best choice. Depending on the time of day you make the transfer, the funds can arrive on the same day or the next.

You’ll likely be needing the bank account and routing numbers for both banks to complete the transaction. A wire transfer isn’t only good for sending money between banks in Canada; it’s also ideal for sending money internationally. Some of the information you’d need includes a SWIFT code, National ID, or IBAN of the recipient bank.

The downside to a wire transfer is that it’s expensive. Wire transfers can cost up to C$40 or more depending on the bank and the amount of funds being transferred.

Interac e-Transfer

Interac e-Transfer is a money transfer service between participating banks in Canada as well as other financial institutions. Most Canadians who bank online can transfer funds through Interac e-Transfer. Participating banks include the BIG FIVE, Tangerine, National Bank, Desjardins, PC Financial, and other credit unions and financial institutions.

How it works

An Interac e-Transfer is similar to an electronic cheque in a few respects. The money isn’t sent via email, contrary to many beliefs. It is the instruction to receive the funds that are sent by mail.

  • The sender starts an online banking session, selects the recipient, the amount of money to send, including a security question and answer. The money gets deducted instantly, often for a surcharge. The security answer is sent separately to the beneficiary through another means as a secondary protective measure.
  • A text message or email is sent to the beneficiary with instructions on answering the security question and collecting the funds via a secure portal.
  • It would be best to answer the question correctly, or the money will revert to the sender. If the recipient banks online at a participating bank, they will receive the funds without charge. However, the recipient will be charged C$4 if the deposit account doesn’t have online banking features or subscribe to  Interac e-Transfer.
  • Autodeposit enables the sender to transfer funds without the receiver answering a security question. However, this feature isn’t available for all banks, and the recipient must enable it in their account settings.
  • If a transfer isn’t accepted after a period, it will not go through. The transfer duration is subject to the bank. Some transfers expire in 24hts while others are valid for 30 days.

Write a Cheque

If you’re not in a hurry to transfer money, you can try writing a cheque. If you have some cash lying around in your chequing account, you can use a cheque to transfer the funds into another bank account.

Sometimes, it’s hard to justify the effort of signing up for a new app and inputting routing and bank account numbers to transfer spare cash. If you have a checkbook, you can put down your name as the payee and deposit the cheque into your other Bank account.

You can even carry out the transaction from home if you know how to deposit the cheque online. If you don’t have a cheque and you’re in the banking hall, the bank rep can print one for you. Be mindful that it’d cost you a small fee for the service.

If you bank with a credit union that’s affiliated with a shared branching network, you can walk into an afflicted credit union to request a cheque. You can move your money from one credit union in Canada to another if they both belong to the same network.

Bank to Bank Transfer using a Big Five Bank  

Scotiabank Money Transfer to Another Bank

Transferring your money to Scotiabank is free courtesy of the Scotia Money Master Savings Account that allows you to move your funds from another bank into a Scotiabank account.

The Money Master Savings Account is excellent for customers who enjoy DIY banking, earning interest with the first dollar they save. Some of the perks include zero monthly fees, unlimited ABM, online and mobile banking transfers.

Before you transfer your funds, Scotiabank needs to verify your bank account at the other bank. Follow the steps below to move your funds:

  • If you are using Scotia Online alongside a Money Master Savings Account, sign in to Scotia Online.
  • Proceed to “Accounts” and select your Money Masters Savings Account
  • Press the Quick Menu button
  • Choose “Transfer funds from another bank.”

BMO Money Transfer to Another Bank

Transferring funds just got easier with BMO, enabling you to move your funds seamlessly between Canadian and US dollar accounts. BMO provides three ways to transfer funds interbank. They are; mobile, computer, and ATM.  Follow the steps below to send or receive funds using BMO:

Mobile

  • Log into your BMO online portal and search for the Pay & Transfer menu located at the bottom of your screen.
  • Enter your transfer information, provide the bank account where you want the money to go, how much you’re sending, and how frequent you’ll be sending it
  • Review all the information and select “Confirm TRANSFER” to complete the transaction

Computer

  • Log in to your online banking and select the Payments & Transfer icon from the menu at the top of your dashboard.
  • Enter your transfer information, provide the bank account where you want the money to go, how much you’re sending, and how frequently you’ll be sending it.
  • Review all the information and select “Confirm TRANSFER” to complete the transaction.

ATM

  • Insert your card and PIN, and select “Other Banking”. Find Transfers at the bottom of the screen.
  • Enter your transfer information, provide the bank account where you want the money to go, how much you’re sending, and how frequently you’ll be sending it.
  • Review all the information and select “Confirm TRANSFER” to complete the transaction.

TD Bank Money Transfer to Another Bank

TD Bank enables customers to transfer funds using Easyweb and provides a simple step by step guide as seen below:

  •  Login to the EasyWeb platform and go to the “Transfers” page.
  • Select the “Transfers” option from the Accounts Screen
  • Select the account you want to send funds from using the dropdown menu and choosing “Select From Account”
  • Select the account you want to send funds to using the dropdown menu and choosing “Select To Account”
  • Enter the amount of funds (C$) you want to transfer.
  • Review all the information to ensure correctness and select the “Finish” button.

Information required to Transfer money from one Bank account to Another

Depending on the method of moving funds, you need to provide specific information to complete the transfer. For starters, you must know how much you want to send and if your bank account has sufficient funds to cover the transfer.

Insufficient funds may trigger overdraft protection or an NSF charge. You also need to know the routing and bank account numbers for your bank and the recipient bank. You should also know the name of your bank as well as the bank you’re sending the funds to.

FAQs

How long does it take for a bank transfer to another bank?

If you transfer funds from one account to another in the same financial institution, it will take 24 hours. However, Money transfers between two financial institutions can take up to four days to go through.

Can I transfer money from TD Bank to another bank?

TD provides external money transfer services for customers, but you’d need to have an Online Banking profile, a Canadian address, a unique Canadian phone number, and a unique email address.

Leave a Reply

Your email address will not be published. Required fields are marked *