Personal Finance

Clever way to transfer money between the Big 5 banks?

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[OP]
Deal Addict
Feb 20, 2006
1181 posts
47 upvotes
Vancouver

Clever way to transfer money between the Big 5 banks?

Looking for any clever ways to transfer money between the big five banks. The best ways would be free and quick, but even ones that don't meet those criteria may be interesting if they are better than some of the alternatives.

Here are the ways I know:

1) Use Interac (or Visa) money transfer. This way is fast (usually a couple hours), but most banks have a limit of only a few $1,000, so to transfer more money would be both annoying (e.g., 10x transfers for 30K) and cost more. Most banks charge a $1.50 fee per transfer.

2) Use a virtual bank like PC financial, tangerine, et al, as a "middle man" - transferring first from the source Big 5 bank to the virtual bank, then on to the destination bank. Unfortunately, this often takes close to 10 business days. A couple days for the transfer, then a 5 day hold (typical, although it can vary by bank and by customer), and then another couple days for the transfer. Additionally, this isn't fire and forget - you have to come back to do the second half of the transfer (although you could potentially set it up as a future transfer if the interface allows it and you have the timing down).

This method is usually free, and can be initiated at any time, online. No particular limits, unless your intermediary bank imposes some type of deposit or withdrawal limits for EFT (this is rare, but some do, such as Interactive Brokers).

3) Bill payment to LOC or credit card. If you have a LOC or credit card at the destination bank, you can probably do a bill payment from the source bank directly to the LOC, or credit card. This doesn't exactly get your money in your chequing account, but in the case of a LOC that allows a positive balance, you can transfer as much as you want and then move it immediately into your chequing account. For LOCs that don't allow positive balances, or credit cards, this technique probably doesn't work as well.

This takes a couple days generally.

4) Wire transfer. This usually happens the same day, but costs $30-$50 on the sending end, and sometimes $20 or so on the receiving end (varies by account). Some banks allow you to set this up over the phone, but some require you to visit a branch. No limit on the amount that can be transferred this way.

5) Cheque. Write a cheque to yourself from the source bank, and deposit it at the destination bank. This works best if the destination bank has cheque deposit by photo (do all the big 5 have it now?). The cost is only the cost of a cheque, which may be free depending on your account. However, if you don't have cheques, and don't have a way to get free ones, this may be expensive. In principle, you could print your own cheque and take a photo of that (perhaps even skipping the photo step entirely), but I haven't been able to find any good templates for Canadian cheques.

This approach is "fast" in that the money nominally appears in your account immediately, but the amount you can actually spend or transfer out depends on your hold limits.

6) Draft. Get a draft at the source bank and deposit it at the destination bank. This will cost you a trip to each bank (can you deposit drafts via the image-deposit option for cheques?), and probably $5-$8 for the draft. Some may get free drafts if they have a premium account plan. As it turns out, drafts are not as good as cash any more, at least based on the last time I deposited one: they said there would be a 5 day hold for them to verify the draft. You may be able to ask them to call the issuing branch to validate it, but it my case it didn't work because the issuing branch never picked up (and never returned any calls, either).

So what else is out there?
40 replies
Deal Fanatic
Aug 3, 2014
5649 posts
3567 upvotes
Not quick, but free. Order credit card cheques (always free). Overpay your credit card so you have negative balance. Write a cheque to yourself and go deposit it. Some (very few) banks charge a fee for using convenience cheques, make sure yours is not one of them.
[OP]
Deal Addict
Feb 20, 2006
1181 posts
47 upvotes
Vancouver
hvwozq wrote: Not quick, but free. Order credit card cheques (always free). Overpay your credit card so you have negative balance. Write a cheque to yourself and go deposit it.
True, although many cards have a 1% fee for the amount the cheque is written for (cash advance fee, regardless of whether you have a positive or negative balance).
Deal Fanatic
Aug 3, 2014
5649 posts
3567 upvotes
Sanchez wrote: True, although many cards have a 1% fee for the amount the cheque is written for (cash advance fee, regardless of whether you have a positive or negative balance).
No, it's the opposite of that.
No fee at Scotiabank, RBC, Capital One, and CIBC.
1% (minimum $7.5) at MBNA.
Don't know about others.
Deal Addict
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May 11, 2014
4599 posts
5433 upvotes
Iqaluit, NU
hvwozq wrote: No, it's the opposite of that.
No fee at Scotiabank, RBC, Capital One, and CIBC.
1% (minimum $7.5) at MBNA.
Don't know about others.
Incorrect. A lot of RBC and CIBC ones charge 1% or $7.50 minimum unless it is their special offer ones. Of late, they charge this fee even if it is a special offer one.
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[OP]
Deal Addict
Feb 20, 2006
1181 posts
47 upvotes
Vancouver
hvwozq wrote: No, it's the opposite of that.
No fee at Scotiabank, RBC, Capital One, and CIBC.
1% (minimum $7.5) at MBNA.
Don't know about others.
How is that the opposite?
Deal Fanatic
Aug 3, 2014
5649 posts
3567 upvotes
xgbsSS wrote: Incorrect. A lot of RBC and CIBC ones charge 1% or $7.50 minimum unless it is their special offer ones. Of late, they charge this fee even if it is a special offer one.
It is the opposite of that too.
CIBC charges a 3% fee ONLY if you have a special offer. Otherwise free at your standard interest rate.
Here's RBC's agreement, read the last sentence:
Image

And I have first hand experience as I'm using convenience cheques.
Sanchez wrote: How is that the opposite?
Opposite of "although many cards have a 1% fee for the amount the cheque is written for"
Very few cards have a fee for using convenience cheques.
Deal Addict
User avatar
Aug 4, 2003
2825 posts
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xgbsSS wrote: Incorrect. A lot of RBC and CIBC ones charge 1% or $7.50 minimum unless it is their special offer ones. Of late, they charge this fee even if it is a special offer one.
Read carefully what hvwozq wrote. He wrote about credit card cheques at regular rate that you specifically order, not the ones with special interest rate they send to you.
Deal Addict
Apr 13, 2015
1108 posts
214 upvotes
McMaggot wrote: Read carefully what hvwozq wrote. He wrote about credit card cheques at regular rate that you specifically order, not the ones with special interest rate they send to you.
I do cash advances all the time with CIBC because the little trading account I have requires me to withdraw money with the same method that I deposit money - my credit card. hvwozq , is correct. $3.50 fee. I've transferred as much as $8500 into my checking account, and the only fee is $3.50. I was even told that I could call in and get that $3.50 fee waived given that my credit card had a large negative balance.

CIBC is also constantly bombarding me with balance transfer offers which include the use of their cheques. Their offers range from 1% fee to 2% fee, depending on expiry date of offer and length of balance transfer term.
Deal Fanatic
Oct 7, 2007
8358 posts
4325 upvotes
If you have a brokerage account at TD Waterhouse, BMO Investorline, etc. you can try to do a bill payment to or from one of these accounts to the other. Of course, you would need to have a brokerage account in place first and some times there are dollar limits on how much you can transfer but I have done this from time to time and in my case it has been fast (next day) and free.
Member
Aug 12, 2015
205 posts
55 upvotes
Toronto, ON
choclover wrote: If you have a brokerage account at TD Waterhouse, BMO Investorline, etc. you can try to do a bill payment to or from one of these accounts to the other. Of course, you would need to have a brokerage account in place first and some times there are dollar limits on how much you can transfer but I have done this from time to time and in my case it has been fast (next day) and free.
This!

Also can use e-transfers if it's less than 3500 and if your account offers them for free.
Member
Jan 24, 2013
210 posts
182 upvotes
Rainy River
If using PCF as a "middle man", one way to speed up the entire process is to pull the money into a PCF line of credit, (I'm assuming here you aren't carrying a balance on your LOC and therefore have your entire LOC limit available for use. This in essence eliminates you holding the deposit for 5 days at PCF. As soon as you see the funds in your LOC account you could immediately, transfer to your other bank. It will reduce your available credit limit until the 5 day hold period is up, but who cares you aren't using it anyway. I do this sometimes for efficiency, obviously the larger LOC limit you have the better as you'll be able to do more transfers or higher dollar value transfers without waiting.
Deal Addict
Jan 24, 2015
1021 posts
308 upvotes
Canadian in USA
In fact with the LOC approach you can initiate both transfers at the same time and not care if the withdrawal from PCF happens a day or two before the deposit to PCF. Interest in a day will be negligible. Probably the best way, and the reason why you want a LOC attached to your "hub" bank account.
Member
Mar 9, 2015
215 posts
85 upvotes
Aldergrove, BC
You could always take out cash and take it over to the other bank and deposit it??
Sr. Member
Mar 14, 2015
751 posts
57 upvotes
Edmonton
I need to fund my TD Waterhouse accounts, what's the best way to do it? I don't have a chequing account with TD anymore. Using Tangerine and BMO, any suggestions?
Deal Addict
May 13, 2005
3526 posts
3373 upvotes
Montreal
FlyOverMyDoodle wrote: I need to fund my TD Waterhouse accounts, what's the best way to do it? I don't have a chequing account with TD anymore. Using Tangerine and BMO, any suggestions?
There are several options

1) You could setup Electronic Funds Transfer (EFT) Service, so you could transfer funds from other financial institution.

https://www.td.com/ca/products-services ... ?id=596574

2) You could open a TD Personal Line of Credit (LOC) and you could link it with your Tangerine account to transfer fund back and forth. This account gives you unlimited free transactions and free checks too... as long as you keep positive balance you don't have to pay interest.

You could transfer funds from your TD LOC to TD Waterhouse via EasyWeb
Sr. Member
Mar 14, 2015
751 posts
57 upvotes
Edmonton
Are those the only way?

Can I do a bill payment directly to my TD Waterhouse account from Tangerine?
Sr. Member
User avatar
Mar 2, 2014
600 posts
293 upvotes
FlyOverMyDoodle wrote: Are those the only way?

Can I do a bill payment directly to my TD Waterhouse account from Tangerine?
Yes, you can. Use your 6-7 characters of TD Waterhouse account Id as payee.
Newbie
May 14, 2015
49 posts
5 upvotes
Mississauga, ON
Hi all,

Did anyone try transferring into CIBC LOC.... it does not reflect as a payee in some of the big banks. I set it up as a CIBC student Loan and tried to transfer between RBC and Scotia, it has been few days and still not credited into CIBC. Does anyone here have idea about it?
Sr. Member
User avatar
Apr 28, 2012
957 posts
337 upvotes
QC
choclover wrote: If you have a brokerage account at TD Waterhouse, BMO Investorline, etc. you can try to do a bill payment to or from one of these accounts to the other. Of course, you would need to have a brokerage account in place first and some times there are dollar limits on how much you can transfer but I have done this from time to time and in my case it has been fast (next day) and free.
I'm gonna try this solution to transfer to RBC from a different bank, but I only have a TFSA brokerage account, I would need to open an unregistered account at RBC Direct Investing in order to avoid affecting my TFSA contribution limit with the transfers.



It could be cool if you could use the RBC Virtual Visa Debit number linked to RBC checking account as a payee to send funds from a different bank, I'm gonna try that and report back

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