Personal Finance

FREE way to transfer money electronically between banks in Canada?

  • Last Updated:
  • Mar 19th, 2013 1:28 pm
Tags:
None
Deal Addict
Sep 22, 2009
2760 posts
228 upvotes
Canadia

FREE way to transfer money electronically between banks in Canada?

Is there any costless way to transfer money electronically between financial institutions in Canada? Like say between BMO and RBC. Or RBC and Credit Union. Most other rich countries have this capability in their banking systems, so I was wondering if it's available in Canada? And if not, is there a timeline for the upgrade? Thanks.
[external advertising link removed]
40 replies
Member
Feb 11, 2004
260 posts
21 upvotes
Kamloops
The big 5 banks in Canada never want you to do anything for free. Simplest way is an email money transfer, but I believe it costs $1.50.

The only free way I think it can be done is through an online bank account (such as PC financial). You would need to link both accounts
to it, by means of mailing in a void cheque so they can verify the account is yours, and then you can transfer funds, though it is not instant.
Deal Addict
Sep 22, 2009
2760 posts
228 upvotes
Canadia
dealhunt wrote: The big 5 banks in Canada never want you to do anything for free. Simplest way is an email money transfer, but I believe it costs $1.50.

The only free way I think it can be done is through an online bank account (such as PC financial). You would need to link both accounts
to it, by means of mailing in a void cheque so they can verify the account is yours, and then you can transfer funds, though it is not instant.
Ah my ING account. Why didn't I think of that...

Although RBC is going to skin me alive for a pre-printed cheque. I wish ING would accept something other than a pre-printed cheque to make a link...

Do any of the non-ING online banks make links without a pre-printed cheque?
[external advertising link removed]
Member
Aug 1, 2008
284 posts
50 upvotes
Toronto
nauru wrote: Do any of the non-ING online banks make links without a pre-printed cheque?
Ally has a great tool to link multiple external bank accounts. It does two small (5 to 15 cent) test deposits into each external account (like PayPal) to verify ownership, and then links the account as soon as you report the correct balance.

Ally just needs a single pre-printed cheque to open the account; although you can get free cheques at PC Financial.

Ally puts a five business day hold on incoming transfers; although you can immediately transfer out any funds that were previously in your Ally savings account.
Member
Feb 11, 2004
260 posts
21 upvotes
Kamloops
nauru wrote: Do any of the non-ING online banks make links without a pre-printed cheque?

I don't think so. I think that is part of legislation to prevent money laundering.

There is a cheaper way to get cheques though: (I haven't done this)
Get a starter cheque (doesnt have preprinted name),
then use it as a sample to order these cheques:
http://www.asapchecks.com/shop/p-15589.htm
Deal Addict
Sep 22, 2009
2760 posts
228 upvotes
Canadia
Islington wrote: Ally has a great tool to link multiple external bank accounts. It does two small (5 to 15 cent) test deposits into each external account (like PayPal) to verify ownership, and then links the account as soon as you report the correct balance.

Ally just needs a single pre-printed cheque to open the account; although you can get free cheques at PC Financial.

Ally puts a five business day hold on incoming transfers; although you can immediately transfer out any funds that were previously in your Ally savings account.

Hm! Well I have preprinted checks for 1 of my bank accounts, just not all of them. So all I would have to do is send 1 preprinted check to open the account, and afterward I could link Ally with whatever accounts I want, without preprinted checks?

If this is correct I will switch from ING to Ally.

RE Dealhunt's post: I'm not sure why this "anti-money laundering" argument is still floating around; if that were true, then wouldn't Paypal and other similar institutions that allow quick transferring of money from one account to another require pre-printed cheques?
[external advertising link removed]
Member
Aug 1, 2008
284 posts
50 upvotes
Toronto
nauru wrote: RE Dealhunt's post: I'm not sure why this "anti-money laundering" argument is still floating around; if that were true, then wouldn't Paypal and other similar institutions that allow quick transferring of money from one account to another require pre-printed cheques?

It's for identity verification. By receiving a pre-printed cheque from another bank, it saves ING, Ally, etc. from having to see your physical ID cards (as they don't have branches where you can show ID). ING, Ally, etc. assume that the other bank has already confirmed your identity, otherwise they wouldn't have issued you pre-printed cheques.

You're right, you can use your existing pre-printed cheque -- and link other accounts -- as long as the cheque has your address on it.
Deal Addict
User avatar
Aug 7, 2010
1127 posts
479 upvotes
The purpose of the preprinted cheque is to provide the exact information about the account number and its owner. You can instead provide a pre-authorized payement form that you can get for free from your bank. I have tried it with the big banks and with ING. No need to waste a cheque.
Deal Addict
User avatar
Aug 7, 2010
1127 posts
479 upvotes
nauru wrote: Is there any costless way to transfer money electronically between financial institutions in Canada? Like say between BMO and RBC. Or RBC and Credit Union.


I have free transfer from CIBC to Desjardins. I just asked Les Caisses Desjardins and they set it up. It works only one way, but when I do a transfer at 3am in the morning, the money shows immediately in my account. Very convenient!
Deal Addict
Sep 22, 2009
2760 posts
228 upvotes
Canadia
Islington wrote: It's for identity verification. By receiving a pre-printed cheque from another bank, it saves ING, Ally, etc. from having to see your physical ID cards (as they don't have branches where you can show ID). ING, Ally, etc. assume that the other bank has already confirmed your identity, otherwise they wouldn't have issued you pre-printed cheques.


Ok... this still doesn't address the inconsistency with Paypal though. Paypal was able to take the account and identity information I gave them over the internet, and then allows me to transfer money wherever I want, whenever I want. They make a couple of deposits in my accounts and I verify the amounts. No need to show photo ID, no need to send a cheque, very quick and simple. Assuming Paypal is not breaking the law by having a quick and painless account opening process, it casts significant doubt on the notion that the cumbersome processes of other institutions are legally necessary.

Another hole: the bank wouldn't have opened an account for me without confirming my identity. So if I already have an account, can't they by the same logic as you have described be confident that my identity has been confirmed? Furthermore, non-pre-printed cheques are not issued without confirmation of ID, so why the insistence on pre-printed cheques? What actual security value is added by the pre-printing, since no additional ID verification is necessary to get pre-printed cheques compared to non-pre-printed cheques?
[external advertising link removed]
Deal Expert
User avatar
Dec 11, 2005
20136 posts
2964 upvotes
PCF lets you transfer to and from them via EFT, but you have to first mail them a void cheque for the account you want to link. ING and Ally also do this.

The new ING chequing account lets you send email money travsfers for free, so that is an option with them.

Most BMO banking plans have 1 or two free Email money transfers / month as well.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Addict
Sep 22, 2009
2760 posts
228 upvotes
Canadia
brunes wrote: PCF lets you transfer to and from them via EFT, but you have to first mail them a void cheque for the account you want to link. ING and Ally also do this.

The new ING chequing account lets you send email money travsfers for free, so that is an option with them.

Most BMO banking plans have 1 or two free Email money transfers / month as well.

ING chequing doesn't seem to be available yet... or am I missing something here? It seems to be in preview mode. I am with ING Direct already. Registered for the preview, but it doesn't appear that I can just get going with the account.
[external advertising link removed]
Deal Addict
User avatar
Aug 7, 2010
1127 posts
479 upvotes
Ing Chequing started to be available on sept. 14. I successfully conducted a couple of transactions on that very same day. I seems you were left out of the loop!
Member
Aug 1, 2008
284 posts
50 upvotes
Toronto
nauru wrote: Ok... this still doesn't address the inconsistency with Paypal though. Paypal was able to take the account and identity information I gave them over the internet, and then allows me to transfer money wherever I want, whenever I want. They make a couple of deposits in my accounts and I verify the amounts. No need to show photo ID, no need to send a cheque, very quick and simple. Assuming Paypal is not breaking the law by having a quick and painless account opening process, it casts significant doubt on the notion that the cumbersome processes of other institutions are legally necessary.
Will PayPal let you transfer more than $1K in an EFT without triggering an identity check? That seems to be the threshold for customer verification at FINTRAC. Perhaps ING and Ally assume that most customers will routinely transfer over $1K in an EFT, whereas PayPal personal accounts tend to handle smaller amounts.
nauru wrote: Another hole: the bank wouldn't have opened an account for me without confirming my identity. So if I already have an account, can't they by the same logic as you have described be confident that my identity has been confirmed?
Ally only needs your pre-printed cheque once, when you open the account:

"By providing us with a personalized cheque as part of the application process, you consent to us confirming that you have a deposit account with a financial institution in Canada, for the purpose of confirming your identity to help us process your application."
-- Source: Ally Terms and Conditions
nauru wrote: Furthermore, non-pre-printed cheques are not issued without confirmation of ID, so why the insistence on pre-printed cheques? What actual security value is added by the pre-printing, since no additional ID verification is necessary to get pre-printed cheques compared to non-pre-printed cheques?
When pre-printed cheques are ordered via your bank, Davis & Henderson receives your address directly from the bank. When you order via a third party printer, such as ASAP Cheques, the printer will contact your bank to verify your address information. I know that, because my bank called me, seeking permission to release my personal information (address), after they were contacted by the printer.
Sr. Member
Jul 11, 2005
956 posts
76 upvotes
dealhunt wrote: The only free way I think it can be done is through an online bank account (such as PC financial). You would need to link both accounts
to it, by means of mailing in a void cheque so they can verify the account is yours, and then you can transfer funds, though it is not instant.

Could you provide more details on this? Can you supply the information page from PCF? I couldn't find any info on this in PCF website.
Sr. Member
Jul 11, 2005
956 posts
76 upvotes
brunes wrote: PCF lets you transfer to and from them via EFT, but you have to first mail them a void cheque for the account you want to link. ING and Ally also do this.
.
PCF EFT is not free.
Deal Fanatic
Feb 21, 2006
5148 posts
101 upvotes
PCF, ING and Ally all offer free online transfers between your linked accounts at other banks (in this context we mean EFT = Electronic Funds Transfer, not EMT = Email Money Transfer, which is not free if you mean the Interac type).

The online banks want you to provide a pre-printed cheque with your name and address on it to open your account initially, because this removes the responsibility from them for verifying your ID and puts it on the other bank.

You can link your other accounts subsequently by just providing the detailed account information, since your identity has already been verified. Ally makes this process especially easy by having a simple online procedure involving two deposits of small random amounts, as described earlier in this thread. ING and PCF are a bit more difficult - they want either a pre-printed personal cheque (same as opening an account), or a detailed account information form to be filled out and mailed in. ING is particularly snooty and difficult about it.

Caveats:
- It takes 1-2 days to transfer money between banks.
- Only accounts in your name are allowed. To transfer money between accounts in different names, you need EMT, payment to the other person's credit card account using online bill payment, or one of the free inter-customer transfer methods offered by banks like RBC.
- When the transfer is between institutions, there's always a holding period of several days.
Deal Fanatic
Mar 6, 2004
9318 posts
204 upvotes
Aske001 wrote: PCF, ING and Ally all offer free online transfers between your linked accounts at other banks (in this context we mean EFT = Electronic Funds Transfer, not EMT = Email Money Transfer, which is not free if you mean the Interac type).

The online banks want you to provide a pre-printed cheque with your name and address on it to open your account initially, because this removes the responsibility from them for verifying your ID and puts it on the other bank.

You can link your other accounts subsequently by just providing the detailed account information, since your identity has already been verified. Ally makes this process especially easy by having a simple online procedure involving two deposits of small random amounts, as described earlier in this thread. ING and PCF are a bit more difficult - they want either a pre-printed personal cheque (same as opening an account), or a detailed account information form to be filled out and mailed in. ING is particularly snooty and difficult about it.

Caveats:
- It takes 1-2 days to transfer money between banks.
- Only accounts in your name are allowed. To transfer money between accounts in different names, you need EMT, payment to the other person's credit card account using online bill payment, or one of the free inter-customer transfer methods offered by banks like RBC.
- When the transfer is between institutions, there's always a holding period of several days.
Stupid question - I guess this means we cannot use the "free cheques" given out by some banks (which have your account number but not your name/address [you have to manually write those in])?
vero95: :facepalm:
Member
Oct 19, 2004
405 posts
17 upvotes
Use free EFT between banks and online broker

Bank A <-> Online Broker <-> Bank B

For example,

TD Bank <-> iTrade <-> RBC
Deal Addict
User avatar
Oct 12, 2005
1747 posts
61 upvotes
Toronto
The cost-effective (non-free) ways to do this (if it doesn't happen too often...and you can tolerate some delay):
-Email Money Transfer: Cost $1.50, Instant
-HyperWallet: Cost $0.75, 24-48 hours each direction (so about 4 days for a complete transfer)
-Zoompass: Cost $0.5, 24-48 hours each direction
-PayPal: Cost Free as long as you're transfering above $150, delays can vary as long as 2 weeks

(None of the above require pre-printed cheques as long as you have acct. info available. However they are meant to be payment rather than transfer services...with the exception of Hyperwallet I guess. All of them have limits on the maximum you can move in and out at any one time)


Free Ways:

PC Financial:
-Requires a Pre-Printed cheque for each account you need to transfer from and to... (your current adress and that on cheque must match)
-Check with them on the phone if they'll accept a direct deposit form instead of a Pre-Printed cheque
-Delay for inbound funds is 24 hours...transferring out varies depending on other institution. Holds apply based on your acct. clearance limits

ING
-Requires a cheque for each bank acct. you need to add. Unless things have changed though, when I originally opened my acct. it did not have to be pre-printed.
-More likely to accept a direct deposit form rather than a cheque.
-Delays in each direction about 24-48 hours. Holds may apply.

Ally (no personal experience with this)
-Seems to require a cheque for the first external acct. you add to establish your Ally acct.
-Appears to not require further cheques for other external accts except the first (as per posts above)
-Normal transfer delays and 5 day holds seem to apply.


Any Bank>> Linked Credit Card>> Acct. with same bank as CC (this is a little less solid than PC/ING/ALLY)

I've personally tried these:

Any Bank>> pay to TD Visa>>Withdraw from Visa to TD Account
-There were no cash advance fees...
-I always tried while having no other transactions on the card...
-I did have an occurrence when moving a large amount (above $5000) where they held the amount on the Visa for about two weeks

Any Bank>>Pay to CIBC Visa>> Withdraw to CIBC acct.
-Cash advance fee (of $2.50) applied but was then credited
-I always tried while having no other transactions on the card...
Feedback:
Heat|e-Bay|RFD

Top