The 6-step switch.
Switching banks is the most valuable thing most Canadians never get around to. A typical switch from Big Bank chequing to a no-fee challenger bank saves ~$200/year in fees AND earns you 3% on your balance. Here's the exact sequence so nothing falls through the cracks.
Switching chequing accounts
Total time: about 3 hours spread over 60 days. Net savings: $200+/year in fees plus interest on your balance.
Open the new account (don't close the old one yet)
15 minApply online at whichever no-fee challenger bank you've chosen from the Compare page. Takes 5-15 minutes. You'll get an account number instantly; physical debit card arrives in 3-5 business days.
Tip: Keep your old account open for 2-3 months in parallel — this is essential for catching stragglers (forgotten subscriptions, surprise debits).
Move your payroll direct deposit
10 min + 1-2 pay cyclesUpdate your direct deposit info with HR or your payroll system. Most employers use PD7A or ADP — the update typically takes 1-2 pay cycles to fully switch.
Tip: Do this right after payday, not right before. You want time for the change to take effect before your next deposit.
Re-direct incoming government payments
10 minCRA (GST credit, Canada Carbon Rebate, tax refunds, CCB), EI, CPP, OAS — all use direct deposit. Log into CRA MyAccount → Personal → Direct deposit, and update each one separately.
Update pre-authorized payments (bills, subscriptions)
1-2 hours spread over 2 weeksThe hard part. Make a list of every recurring charge on your OLD account statement (use the Statement Analyzer if you haven't already). For each one: log into the biller or provider, change the bank account on file, wait for confirmation.
Tip: Common payees: utilities, phone, internet, streaming, insurance, gym, mortgage, property tax, car payment, credit card autopay, investment contributions.
Move your savings gradually
5 min/week for 2-4 weeksTransfer your cash balance in chunks, not all at once. Leave enough in the old account to cover any stragglers ($500-1,000 buffer). Move the rest to the new HISA — top challenger banks currently pay ~3% compared to 0.05% at most Big Banks.
Wait 60 days, then close the old account
30 min60 days is enough to catch all monthly recurring charges at least twice. Review the old account statement, confirm zero recent activity, then close. Some banks charge a 'dormant account fee' — closing cleanly avoids this.
Tip: Ask for written confirmation of closure in writing. Some Big Banks reactivate 'closed' accounts when a stray debit comes through.
Switching credit cards
Switch when you have a better rewards structure lined up. DO NOT close old cards — keep them active for credit score.
Apply for the new card and wait for approval
10 min + 5-10 days for mailMost Canadian card issuers give an instant decision. For the best welcome bonuses, apply through the issuer's main site (not a third party) and meet the minimum spend in the first 3 months.
Activate and set autopay to full balance
5 minBefore using the new card, set autopay to the FULL balance (not minimum). This eliminates interest charges and protects your credit score if you ever miss a login.
Tip: Autopay minimum + forget = compounding debt. Autopay full = never carry a balance. Pick full.
Migrate recurring charges to the new card
1-2 hours over 2 weeksSame pattern as the chequing move. List every recurring charge, update each one via the provider's website. Common: streaming, Amazon Prime, phone bill, insurance auto-pay.
Keep the old card open (even if unused)
OngoingDo NOT close old credit cards. Keeping them open preserves your credit utilization ratio (total used / total limit) and your account age — two big credit score factors. Put a $5/mo subscription on the old card and set autopay so it stays active.
Tip: Only close old cards with annual fees you're sure you won't use. Even then, ask to downgrade to a no-fee product first.