How to transfer money between banks in Canada

Updated June 2026

Introduction

Understanding how to transfer money between banks in Canada comes down to choosing the right method for your specific situation. Canadians can move funds through Interac e-Transfer®, linked external account transfers, electronic funds transfers (EFT) and pre-authorized debits (PAD), wire transfers, and bill payments in certain cases. Each option carries different fees, processing times, and transfer limits.

This guide is written for individuals, sole proprietors, finance managers, and business owners who need a clear, practical reference for moving money between accounts. Whether you are shifting funds between your own chequing and savings accounts, paying a supplier, or separating CAD and USD cash flows, the best method depends on the amount, urgency, frequency, and whether the transfer is domestic or cross-border.

As you review your options, verify current limits, fees, and processing times directly with your financial institution or banking platform. Details change, and what applies in 2025 may shift heading into 2026.

The Main Ways To Transfer Money Between Banks In Canada

Canadian businesses and individuals have several practical options for moving money between accounts at different financial institutions. The right choice depends on how much you need to transfer, how quickly it needs to arrive, whether you are moving money between your own accounts or sending it to someone else, and whether the transfer is domestic or cross-border.

Interac e-Transfer® is the most familiar option for fast domestic transfers. It works well for smaller amounts and can arrive within minutes when the recipient has Auto-Deposit enabled. Most financial institutions cap individual Interac e-Transfer® transactions at a few thousand dollars, which makes it less practical for larger business cash movement.

Linked external account transfers suit businesses and individuals who regularly move money between their own accounts at different institutions. You connect the external account once, verify ownership through micro-deposits or a void cheque, and then initiate transfers as needed. Processing typically takes one to three business days, but the method handles larger amounts more reliably than Interac e-Transfer®.

EFT and PAD are the standard rails for recurring business transfers. Electronic funds transfers move money between accounts in batch cycles, while pre-authorized debit lets a business pull funds from a linked account on a set schedule. Payroll platforms, supplier payments, and recurring funding arrangements commonly run on these rails.

Wire transfers handle urgent or high-value transactions where certainty matters. They cost more than other methods but settle faster and carry higher limits.

Bill payments let you pay credit cards, loans, or specific payees at another institution directly through online banking, though this differs from transferring cash between two deposit accounts.

Speed, fees, holds, and per-transfer limits vary across financial institutions and business banking platforms. It also helps to understand whether a transfer is a push, meaning you initiate it from the sending account, or a pull, meaning the receiving institution requests the funds. Both approaches are covered in the step-by-step section below.

What You Need Before You Transfer Money

Before you initiate a bank-to-bank transfer in Canada, gather the correct account details for both the sending and receiving institutions. Three identifiers form the foundation of any domestic transfer:

• Account number: the unique number assigned to your specific chequing or savings account, typically 7 to 12 digits

• Transit number: a 5-digit code identifying the specific branch where the account was opened

• Institution number: a 3-digit code identifying the financial institution itself

You can find all three on a void cheque or a direct deposit form provided by your bank or credit union. Most online banking portals also display these details under account settings.

Once you have the right numbers, most platforms require account verification before approving transfers. This often involves micro-deposits, where the receiving institution sends two small amounts to confirm ownership, followed by a security check and name-matching review. Name mismatches between the account holder and the transfer recipient are one of the most common reasons verification stalls or a transfer gets delayed.

For business finance teams, the setup requirements go further. Moving money between accounts at different institutions often requires Pre-Authorized Debit (PAD) agreements, a bank letter confirming account ownership, or documented internal approval records. Standardizing account naming conventions across your organization and building consistent payment workflows reduces errors and speeds up approvals, particularly when multiple team members initiate or approve transfers. These practices apply whether you bank with a Big 5 institution, a credit union, or a modern business banking platform.

Step By Step: How To Transfer Money Between Your Own Bank Accounts

Moving money between your own accounts at different Canadian institutions follows a predictable sequence, but the method you choose affects how fast the funds arrive and how much friction you encounter along the way.

Option 1: Link An External Account In Online Banking

Log in to either Bank A or Bank B and navigate to the external accounts or linked accounts section. Enter the account details for the other institution, including the transit number, institution number, and account number. The bank will verify ownership, typically by sending two small micro-deposits that you confirm, or by asking for a void cheque or direct deposit form. Once verified, initiate the transfer and select the amount and direction. Expect one to three business days for processing, and note that some institutions place a hold on incoming funds until the transfer fully clears.

Option 2: Push Money From One Bank To Another

A push transfer means you initiate the movement from the account where the money currently sits. You log in to the sending bank, select the linked external account as the destination, enter the amount, and confirm. The sending bank pushes the funds outward. This approach gives you direct control over timing and is well suited to moving larger amounts between your own chequing or savings accounts on a scheduled basis.

Option 3: Pull Money Into The Receiving Bank

A pull transfer works in the opposite direction. You log in to the receiving bank and instruct it to pull funds from the external linked account. The receiving institution initiates the request. This method requires that the source account has already been linked and approved, since the receiving bank needs permission to access the external account. Some businesses prefer pulling because it keeps funding activity centralized within the destination account.

Option 4: Use Interac e-Transfer® For Smaller Same-Day Moves

Interac e-Transfer® works well for quick, low-friction transfers between your own accounts when the amount falls within your institution's per-transfer and daily limits. Most Canadian banks cap individual Interac e-Transfer® transactions between $3,000 and $10,000, with daily limits varying by institution and account type. For a one-time move of a few thousand dollars, Interac e-Transfer® is often the fastest option. For larger or recurring business cash movement, such as funding a payroll account or shifting operating reserves, the per-transfer caps and manual repetition make it less practical than a linked external account transfer or an EFT arrangement.

How Businesses Usually Transfer Money Between Banks

Most Canadian businesses move money between accounts for a handful of recurring reasons: funding payroll, covering supplier invoices, shifting surplus cash into an interest-bearing account, or keeping CAD and USD cash flows in separate accounts. The method you choose should match the workflow, not just the amount.

For one-off transfers under a few thousand dollars, Interac e-Transfer® works. But for recurring operational transfers, EFT or pre-authorized debit (PAD) is a stronger fit. PAD lets your payroll platform or finance team pull funds on a set schedule without manual intervention each cycle. That consistency matters when you are funding payroll accounts on a deadline or moving money to a supplier payment account every two weeks.

Interac e-Transfer® also carries per-transfer and daily limits that make it impractical for larger business cash movement. EFT handles higher volumes with less friction and integrates more cleanly into accounting and payroll tools.

Multi-currency needs add another layer. Businesses collecting payments from U.S. customers, receiving Stripe, Shopify, or PayPal payouts in USD, or paying suppliers in U.S. dollars benefit from holding a local USD account. Moving funds between a CAD operating account and a USD account through a platform that supports both eliminates unnecessary conversion steps and gives your finance team cleaner records.

Compare The Most Common Transfer Methods In Canada

Method	Best For	Typical Speed	Typical Cost	Common Limits	Main Drawback
Interac e-Transfer®	Fast domestic transfers to individuals or your own accounts	Minutes to a few hours	Free to $1.50+ depending on institution	$3,000 to $10,000 per transfer, varies by bank	Lower caps make it impractical for large business transfers
Linked External Account Transfer	Moving money between your own accounts at different institutions	1 to 3 business days	Often free	Varies widely by institution	Requires upfront verification; slower than Interac e-Transfer®
EFT / PAD	Recurring operational transfers, payroll, supplier payments	1 to 3 business days	Low to free	Generally higher than Interac e-Transfer®	Setup requires banking details and authorization forms
Wire Transfer	Urgent high-value or international payments	Same day to 1 business day	$15 to $50+ per transfer	Typically no hard cap	Higher cost per transaction
Bill Payment	Paying credit cards, loans, or registered payees	1 to 2 business days	Usually free	Payee must be registered	Not suitable for moving funds between two deposit accounts

The right method depends on several factors working together. For urgent, smaller transfers, Interac e-Transfer® is often the simplest choice. For large or recurring business transfers, EFT or PAD typically offers better reliability and higher limits. Wire transfers suit time-sensitive or cross-border payments where certainty matters more than cost. Consider whether the transfer is one-time or recurring, domestic or international, and whether you are moving money between your own accounts or sending funds to a third party. Each of those variables points toward a different method.

Which Account Options Are Worth Considering For Businesses

Choosing where to hold and move business funds affects more than just transfer speed. The right account setup shapes how efficiently your team handles payroll, supplier payments, multi-currency cash flows, and accounting reconciliation. The table below compares the most relevant options for Canadian businesses on a practical, use-case basis.

Option	Best For	Domestic Transfer Tools	International Or Multi-Currency Support	Integrations Or Extra Tools	Trade-Offs
Big 5 Banks	Established businesses needing branch access and a full product suite	Interac e-Transfer®, EFT, PAD, wire transfers	International wires available; FX fees and conversion markups typically apply	Varies by bank; some accounting connections available	Higher account fees; cross-border workflows can be slower and more costly
Credit Unions	Businesses that value relationship banking and local support	Interac e-Transfer®, EFT, PAD	Limited; international capabilities vary significantly by institution and province	Generally limited integrations	Capabilities inconsistent across provinces; fewer digital-first tools
Venn	Businesses wanting transfers, expense management, and accounting workflows in one platform	Interac e-Transfer® for vendor payments, EFT, PAD, ACH	Local CAD and USD accounts; GBP and EUR account capabilities for international needs	QuickBooks and Xero integrations; OCR receipt capture; Mastercard charge card with tiered cashback	Not a bank; eligible funds covered under CDIC insurance protection; available to businesses outside Quebec
Wealthsimple Business Chequing	Sole proprietors and small teams wanting a simple, low-fee operating account	Interac e-Transfer®, EFT	Limited multi-currency support	Minimal business operations stack	Less suited to complex or high-volume business workflows
Wise Business	Businesses with frequent cross-border payments and currency conversion needs	Domestic transfers supported	Strong multi-currency support across numerous currencies	Some accounting integrations available	Not a complete domestic business banking workflow for every company

A few details worth noting on Venn's cashback structure: the Essentials plan offers 1% cashback on the first $5,000 in monthly card spend, Plus offers 1% up to $25,000 monthly, and Pro offers 1% unlimited cashback. These tiers make the charge card more or less valuable depending on your monthly spending volume.

For businesses that regularly move money between CAD and USD accounts, pay international suppliers, or want to reduce the friction between banking and bookkeeping, the account platform itself matters as much as the transfer method.

Fees, Timing, Limits, And Delays

Transfer timing in Canada depends heavily on the method you choose. Interac e-Transfer® typically settles within minutes, while linked external account transfers and EFT payments usually take one to three business days. Initiating a transfer after your financial institution's daily cutoff time, often between 3:00 and 5:00 PM ET, pushes processing to the next business day. Weekends and federal bank holidays extend that window further, so a transfer submitted Friday afternoon may not complete until Tuesday.

Many transfers show a pending status before funds become available. Banks and platforms commonly apply hold periods to incoming deposits, particularly for new accounts or large amounts, which means the money arrives but remains temporarily inaccessible.

On cost, Interac e-Transfer® is often included in personal and business account packages at no per-transaction fee, though business account service fees vary by institution. Domestic wire transfers typically carry a fee ranging from $15 to $30 or more per transaction. International wire transfers cost more and may involve correspondent bank charges on top of the sending fee.

Transfer limits add another layer of planning. Most institutions set per-transfer, daily, weekly, and monthly caps. A large bank transfer in Canada may exceed standard online limits entirely, requiring you to initiate a wire transfer, request a manual limit increase, or obtain advance approval from your institution. Some platforms flag high-value transfers for fraud review, which can add processing time even when everything is legitimate.

Fee schedules and transfer limits change. Before initiating any high-value or time-sensitive transfer in 2026, confirm current limits and costs directly with your financial institution or banking platform.

Common Problems And How To Fix Them

Even straightforward bank-to-bank transfers in Canada can run into friction. Knowing what causes delays and how to respond saves time and prevents costly mistakes.

Transfer pending longer than expected. Most transfers process within one to three business days, but weekends, statutory holidays, and bank cutoff times all extend that window. A transfer initiated Friday afternoon may not begin processing until Monday. If your transfer shows as pending beyond three business days, contact your bank or platform directly to confirm whether a hold or review is causing the delay.

Account will not link. The most common causes are an incorrect transit number, institution number, or account number. Some platforms also do not support all Canadian financial institutions. Name mismatches between the account holder and the profile on file will block verification. Failed micro-deposits usually mean the account details need to be re-entered and resubmitted.

Large transfer gets flagged. Banks and platforms apply fraud prevention checks to high-value transfers. If your transfer is held, you will typically need to complete identity verification or call the institution to confirm the transaction. This is standard practice, not a sign of an error on your end.

Money sent to the wrong place. Confirm the recipient's full name, account number, transit number, and institution number before sending. Recovery depends on the transfer method, how quickly you act, whether the recipient cooperates, and the policies of both institutions involved. Reversal is not guaranteed.

Safety Tips Before You Move Money

Before you send any transfer, confirm the account number, transit number, and institution number against a void cheque or official direct deposit form. A single transposed digit can send funds to the wrong account, and recovery is not guaranteed.

Always access your online banking through your institution's official website or mobile app. Use a secure, private network and enable strong authentication on your account. For Interac e-Transfer®, turn on Auto-Deposit where available to reduce the risk of interception.

Businesses face specific threats worth knowing. Email invoice fraud, vendor bank-account change scams, and supplier impersonation attempts are common. If a supplier, contractor, or payroll recipient sends updated banking details by email, do not act on that message alone. Call the contact directly using a phone number you already have on file, not one provided in the same email, to confirm the change before processing any payment. Apply this verification step to large domestic transfers and cross-border payments alike.

Treat any urgent payment request with extra scrutiny. Pressure to move money quickly is a reliable warning sign of fraud.

Conclusion

The best way to transfer money between banks in Canada depends on how much you're moving, how quickly you need it to arrive, how often the transfer repeats, and whether you're sending funds domestically or across borders. Interac e-Transfer® works well for fast, smaller transfers. Linked external accounts and EFT or PAD setups suit recurring business payments. Wire transfers serve urgent, high-value needs.

Before settling on a method, compare both the transfer options and the account setup behind them. If your business regularly moves funds between CAD and USD accounts, pays suppliers, manages team expenses, or needs accounting integrations with tools like QuickBooks or Xero, the platform you bank with matters as much as the transfer method you choose.

Take time to evaluate which combination of transfer tools, account types, and workflows fits your actual operating needs. If you want banking, payments, and expense management in one place, sign up for a Venn account and see whether it fits your business.

FAQ

Q: What is the cheapest way to transfer money between banks in Canada? A: Interac e-Transfer® is typically the lowest-cost option for smaller transfers, and many Canadian banks include it at no extra charge with standard chequing accounts. For larger or recurring transfers between your own accounts, linking accounts via EFT or PAD is often free, though processing takes one to three business days.

Q: How long does a bank transfer take in Canada? A: Interac e-Transfer® usually arrives within minutes if the recipient has Auto-Deposit enabled. Linked external account transfers and EFT payments generally take one to three business days, and wire transfers can settle the same day domestically if submitted before the bank's cutoff time. Weekends and holidays extend all timelines.

Q: Can I transfer a large amount between banks in Canada? A: Yes, but Interac e-Transfer® has per-transfer and daily limits that vary by institution, making it impractical for large amounts. Wire transfers or linked external account transfers are better suited for high-value moves, though your bank may require identity verification or a manual review before processing.

Q: Is Interac e-Transfer® the same as an EFT? A: No. Interac e-Transfer® is a real-time messaging network that moves funds between Canadian deposit accounts using email or phone number. An electronic funds transfer, or EFT, is a broader category that includes pre-authorized debits, direct deposits, and batch payroll payments, typically processed through the banking system over one to three business days.

Q: What details do I need to link two bank accounts in Canada? A: You need the account number, transit number, and institution number for the account you want to link. Most banks also accept a void cheque or a direct deposit form as an alternative. Some platforms verify ownership through micro-deposits, which involves two small test transactions you confirm before the link activates.

Q: What is the best way for a business to move money between CAD and USD accounts? A: The right approach depends on transfer volume and frequency. Businesses that regularly handle both currencies benefit from holding separate local CAD and USD accounts to avoid unnecessary conversions on every transaction. Venn, a Canadian business banking platform, offers local CAD and USD accounts alongside EFT capabilities, which can simplify cash flow management for businesses with cross-border suppliers or U.S. clients.

--- **Disclaimer:** This publication is provided for general information purposes only and does not constitute legal, tax, financial, or other professional advice from Venn Software Inc., its subsidiaries, or its affiliates, and is not a substitute for advice from a qualified professional. All comparisons and competitor information reflect publicly available information believed accurate as of June 1, 2026; features, pricing, rates, and terms referenced are subject to change and may differ at the time you read this. All product names, logos, and brands referenced are the property of their respective owners; their mention does not imply affiliation with or endorsement by Venn. Any comparative statements reflect Venn's views and are provided to help readers evaluate options. We make no representations, warranties, or guarantees, express or implied, that the content is accurate, complete, or up to date.