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How to switch banks and start saving on fees

July 22, 2024

Written by Kelley Keehn

An illustration of two light switches, one on and one off.

Key takeaways

  • Switching to a bank with no monthly account fees, like Tangerine, can lead to substantial savings over time. Even $10 in monthly fees adds up to $600 over five years.
  • Tangerine makes it simple to become a Client and transfer from your existing accounts. The process is quick, user-friendly, and can be completed in minutes using the Tangerine Mobile Banking app.
  • Tangerine offers a range of tools and features to help manage your finances, including notifications, budgeting tools, and financial goal setting. With no fees for everyday transactions and a convenient app, Tangerine provides a robust platform for efficient money management.

How to switch banks and start saving on fees

For years, my husband and I thought we had our finances figured out. But just like maintaining good health, financial fitness requires constant attention to the details. It's easy to slip into complacency without a looming deadline like filing your tax return. Plus, when faced with seemingly minor expenses like a $10 bank account fee, you might question if the effort to switch to another bank is worthwhile.

But here's the kicker: did you know that a seemingly insignificant $10 monthly account fee adds up to a whopping $600 over five years? And if you do the math further, that's $3,600 over 30 years! This was a reality check for my husband, Wyatt, whom I'd been urging to take action and switch to an account without monthly fees. He'd never gotten around to it despite having this on his to-do list for years. He's not alone — most Canadians tend to stick with the same account they opened when they were young, according to a 2021 survey.

A straightforward calculation made Wyatt take action. Facing $25 in monthly fees for two bank accounts, he realized that he would spend more than $1,500 over five years. Extending this to 30 years, the cost would balloon to $9,000, a figure that served as a wake-up call. Using the Financial Consumer Agency of Canada’s bank account selector tool, Tangerine emerged as the top recommendation based on Wyatt's criteria. As a tech-savvy individual who values frugality, Wyatt appreciated Tangerine's app for its convenience.

If you're considering switching to Tangerine — or you're already a Client but still aren't using Tangerine for your everyday banking — this article can guide you every step of the way. And the best part? It's much easier than you might think.

1. Check out the latest offers

Before diving in, take a moment to explore the latest offers. If you're new to Tangerine, there may be extra incentives to sweeten the deal. Visit Tangerine's offer page to see what's available.

(Already a Tangerine Client? Skip ahead to step 6.)

2. Got an Orange Key? Use it!

A friend or family member who's already a Tangerine Client can refer you using their unique Orange Key. Follow the instructions to sign up with the Orange Key, and you and your referral could receive a $50 Bonus!

3. Download the app

Signing up with Tangerine is a breeze with their Mobile Banking app. Simply download it from your app store to get started.

4. Become a Client

Becoming a Tangerine Client is quick and easy. You can follow the prompts in the app and be signed up in minutes.

5. Have a look around

Welcome to Tangerine! There are many ways to save, invest and grow your money. Plus, you get free, powerful tools to help you save, reach your goals and track your spending. To continue your journey of paying less in fees, start with a Chequing Account.

6. Open a Chequing Account

A Tangerine Chequing Account is a great Account to start with. It comes with a Client Card for debit purchases and ABM transactions, and your first book of 50 cheques is free - for any circumstances where you need to pay by cheque. With no fees for everyday transactions, this is perfect as your main Account for banking.

7. Switch over from your old account

Without monthly Account fees or limits on the number of daily transactions, your Tangerine Chequing Account is the perfect place to get paid and pay your bills. Now comes the crucial step: transferring over payments and deposits from your old account to Tangerine. Begin by moving your payroll deposits.

You'll want to go through recent bank statements, make a list of your regular payments, such as bills and subscriptions, and start transferring them over. Be careful not to miss any annual payments you might have, such as insurance policies. And if your account is set up to receive deposits from the government, such as tax refunds, don't forget to switch those, too.

If you need a void cheque to make the switch, you can quickly access a digital void cheque from your Tangerine Chequing Account within the app.

Finally, make sure you don't have any cheques or money transfers from the old account waiting to be cashed.

Once everything has been transferred over, you might want to wait at least a month to make sure you didn't miss anything. After that, if you're planning to close your old bank account, contact them to initiate the closure process.

8. Set up notifications

Tangerine offers convenient notification features to help you manage your finances. Set up Orange Alerts to keep track of account activity. You can opt to receive these alerts on your phone or via email.

9. Explore money management tools

Take advantage of Tangerine's money management tools. From budgeting to financial goal setting, these tools can help you maximize your money. Here, you’ll find a convenient toolkit packed with straightforward strategies to automate your money management, from saving to monitoring your expenses to maintaining financial oversight. With just a few taps or clicks, you'll be well on your way.

10. Use your Orange Key

As you experience the benefits of banking with Tangerine, why not share it with others? (You could earn a sweet $50 Bonus when you get a friend or family member to enroll using your Orange Key, up to three Bonuses per year.)

11. Congrats on making the move!

I know Wyatt’s feeling pretty good about his decision. I hope you, too, have taken this simple but significant step toward improving your financial well-being.

Banking where you’re paying monthly account fees?

If you pay per month with your current bank, then by switching to Tangerine today, in years you’d save:*
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*Estimator tool is for demonstration purposes only and should not be relied upon as financial or other advice. Calculations are estimates only based on the information you provide and assume no fees for non-standard transactions are incurred in the Tangerine Chequing Account. Actual savings may vary. All rates, fees, features, offers and benefits and related terms and conditions are subject to change.

This article or video (the “Content”), as applicable, is provided for information purposes only. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this content, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and Tangerine Bank is not responsible to update this information. References to any third party product or service, opinion or statement, or the use of any trade, firm or corporation name does not constitute endorsement, recommendation, or approval by Tangerine Bank of any of the products, services or opinions of the third party. All third party sources are believed to be accurate and reliable as of the date of publication and Tangerine Bank does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.

Tangerine Investment Funds are managed by Tangerine Investment Management Inc. and are only available by opening an Investment Fund Account with Tangerine Investment Funds Limited. These firms are wholly owned subsidiaries of Tangerine Bank. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.