accounts at different banks
There are 2 ways to transfer money between accounts at different banks:
1. Send yourself e-transfers.
Remember, when you transfer money from an account, you use the e-transfers related to that account. This is important because your savings account usually has fewer free e-transfers than your chequing. Frequent additions to savings are easy. Withdrawals should be carefully considered.
2. When online in your chequing account, set up your savings account and its bank as a ‘payee’ to link the accounts. Then do the same the other way around, setting up your chequing account as payee from your savings account.
- Banks use different terminology – also look for ‘add an account’ / ‘external accounts’ / ‘transfer money in/out’.
If you didn't set up online banking when opening your savings account, you can do it yourself from home.
- Grab your debit card and google your bank’s online banking.
- Near the 'Sign-in' button there should be a 'Register' button
- You'll be asked for your debit card number, its expiry date, and the three-digit security code on the back.
- The system will send a verification code to either the email address or phone number associated with the account.
- You'll create a password and acknowledge you've read the online banking agreement.
accounts at the same bank
You can transfer money between your accounts online.
- Login to your online / mobile banking.
- If your savings account doesn't show up automatically, follow instructions on the site to link your accounts - look for My Accounts or Add an Account and link them to see them together on the site.
What if your bank goes bankrupt?
If a bank goes out of business, your money will be fine. A government agency called the Canada Deposit Insurance Corporation (CDIC) or its provincial equivalent automatically insures deposits up to $100,000 per account.
If you ever need to keep more than $100,000 in your savings account, open another one. Make sure you do it at a different bank so that all your money is protected - because only one account per bank can be insured.
monitor your account
Monitor your account online:
- Regularly check for unexpected fees / charges.
- Always double check that the money went through when you transfer money between your accounts.
- What else can you do to reduce the risk of fraud in your savings account?
You don’t have to worry about income tax if this is a TSFA account.
If your savings account is not a registered account, the interest you earn is taxable.
- Each January / February look out for income tax slips from your bank. They will show how much interest you need to report in your annual income tax filing.
- Consider learning about investing and tax.
link your accounts
Link your savings to your chequing account to transfer money easily.