Leave Big 5 Banks 2026: Save $250+/Year (Step-By-Step)

The average Canadian Big 5 chequing account costs $11–$17/month — around $150/year — and pays 0.01% on savings. Switching to a no-fee bank saves the fee AND adds 4%+ interest on savings. The migration takes 30–60 days and once done, never has to be repeated.

Here’s the exact process I used when switching from TD to EQ Bank, with the missed-payment traps to avoid.

Why switch?

If you’re with RBC, TD, BMO, CIBC, or Scotia, here’s what you’re paying vs the alternative:

	Big 5 chequing	EQ Bank / Wealthsimple Cash
Monthly fee	$11–$17 (sometimes waived with $4K balance)	$0
Interac e-Transfer fee	Free or $1.50 each	Free unlimited
Savings interest	0.01–0.05%	3.5–4.5% (typical 2026)
ATM withdrawals	Free at network, $1–$3 elsewhere	Free network-wide
Annual cost (typical user)	$150–$250	$0

On $25,000 in savings, the difference in interest alone is $875–$1,000/year — money you’re currently giving the Big 5 bank for free.

Step 1: Pick the new bank

The four reasonable options for replacing a Big 5 chequing account:

1. EQ Bank — best for highest standard rate, joint accounts, Notice Account tiers. Read review
2. Wealthsimple Cash — best for Wealthsimple Trade users, high balances ($1M trust coverage), cashback Mastercard. Read review
3. Simplii Financial — best for free CIBC ATM access, broader product line. Read review
4. Tangerine — best for Scotia ATM access, periodic 5–6% promotional savings rates. Read review

For most Canadians: EQ Bank if you want the best standard rate, Wealthsimple Cash if you want the simplest ecosystem with investing.

Step 2: Open the new account (10–15 minutes)

Go to the bank’s website, click “Open Account,” and complete the online application. You’ll need:

• Government-issued ID (driver’s licence, passport, or PR card)
• SIN
• Proof of address (utility bill, lease)
• Employment info

Most users are auto-verified instantly. If not, upload a photo of your ID and wait 1–2 business days.

Step 3: Fund the new account

Once approved, deposit a small amount ($100–$500) to test the account works:

• Interac e-Transfer from your Big 5 account to the new account
• Or: link your Big 5 account in the new bank’s app and pull funds (1–3 days)

Run a few test transactions: send an e-Transfer to a friend, pay a small bill from the new account. Confirm everything works smoothly before migrating real money.

Step 4: Update direct deposits FIRST

Direct deposits = money coming in to your account. Update these before changing pre-authorized debits.

Employer payroll

1. Download a “direct deposit form” or “void cheque PDF” from your new bank’s app (every modern Canadian bank provides this digitally)
2. Submit to your employer’s HR or payroll
3. Most employers process within 1–2 pay cycles (1–4 weeks)

CRA

1. Log into CRA My Account → Profile → Direct deposit
2. Update account info → save
3. Effective immediately for tax refunds, GST/HST credit, Canada Child Benefit

Provincial benefits

If you receive provincial benefits (Ontario Trillium, BC Family Benefit, etc.):

1. Log into your provincial government online service
2. Update banking → save

Other recurring deposits

• Government pensions (CPP, OAS, GIS) — Service Canada online
• Disability benefits (CPP-D, ODSP) — same
• Investment dividends — your brokerage’s banking settings

Important: verify each new direct deposit successfully lands in the new account before stopping the old one.

Step 5: Migrate pre-authorized debits ONE AT A TIME

Pre-authorized debits = money going out. This is where most missed-payment problems happen.

The rule: change one PAD at a time, verify it processes correctly, then move to the next.

Common PADs to update:

• Mortgage payment — bank’s online portal or call mortgage department
• Rent (if PAD) — landlord (often via change-of-account form)
• Utilities — gas/electric/water company online portal
• Internet/phone — Rogers/Bell/Telus account settings
• Insurance — auto/home/life provider online portal
• Gym/subscriptions — each provider’s account settings
• Credit card auto-pay — each card issuer’s website
• Investment auto-deposits — brokerage’s banking settings
• TFSA/RRSP/FHSA contributions — Wealthsimple/Questrade banking settings

For each one:

1. Log into the provider
2. Update payment method to new bank account
3. Note the next billing date
4. Confirm that bill processes from the new account
5. Move to the next PAD

Spread these out over 2–4 weeks. Don’t update everything in one day — if something goes wrong, you’ll have multiple missed payments cascading.

Step 6: Keep both accounts open for 60 days

After all direct deposits and PADs are updated, keep the old Big 5 account open with a small balance ($50–$100) for 60 days.

This catches:

• Forgotten subscriptions you haven’t updated yet
• One-off annual bills (insurance, memberships) that bill from the old account
• Refunds processed back to the old account
• Cheques you wrote that haven’t cleared yet

The Big 5 might charge 1–2 monthly fees during this period — accept it as insurance against missed payments.

Step 7: Close the old account

After 60 days of zero activity:

1. Verify the old account has zero pre-authorized debits hitting it (call the bank for a list)
2. Verify the old account has zero direct deposits coming in
3. Withdraw the remaining balance to your new account
4. Call the bank or visit a branch to formally close the account
5. Get written confirmation of closure

Most Big 5 banks allow online closure for chequing/savings, but some require a phone call. Confirm in writing — closed accounts occasionally re-open if a stray PAD hits, restarting fees.

Common switching mistakes

1. Closing the old account before migration is complete. Causes missed payments and PAD failures. Always overlap accounts for 60 days.

2. Migrating PADs all at once. If something goes wrong, you’ll have a cascade of failures. One at a time, verified.

3. Forgetting one-off annual bills. Car insurance, gym memberships, professional memberships often bill annually. They’ll hit the old account 11 months after you “switched” if you missed them.

4. Closing credit cards with the old bank. Reduces your total credit limit (hurts utilization score) and shortens credit history. Keep credit cards even after closing the chequing account.

5. Forgetting to download statements. Big 5 banks may charge $5/statement for historical records after account closure. Download 7 years of statements before closing for CRA records.

What about credit cards from the old bank?

You don’t need to close them. Credit cards and chequing accounts are independent products at the same bank. You can keep a TD Visa Infinite while moving your chequing to EQ Bank. Just:

1. Update the credit card’s auto-payment to draw from the new bank account
2. Continue using the credit card normally
3. Pay off the balance from the new account

If you want to eventually close the credit card too, do it months after the chequing account closure — and only if you have other long-held cards maintaining your credit history.

The full migration timeline

Week	What to do
1	Open new account, fund $500, run test transactions
1	Update CRA direct deposit
2	Update employer payroll
2	Verify new payroll deposit lands
3	Update high-priority PADs (mortgage, utilities)
4	Update mid-priority PADs (subscriptions, insurance)
5	Update remaining PADs
6	Verify zero recent activity on old account
6–10	Wait 60 days with both accounts open
11	Confirm old account has zero PADs and deposits
11	Close old account

Total elapsed time: ~11 weeks (3 months). Total active work: ~4–6 hours total spread over the period.

Read next

• EQ Bank Review — top no-fee bank
• Wealthsimple Cash Review — best ecosystem
• Best high-interest savings account in Canada — full HISA comparison
• Best credit cards in Canada — pair with the new account