Wire transfer vs bank transfer in Canada : What's the difference?

Wire transfers and bank transfers may seem similar at first glance. You can use both payment methods to pay someone electronically in Canada. However, they aren’t the same thing. Wire transfers require your bank to transfer funds, whereas you can send a bank transfer yourself.

This guide will cover everything you need to know about wire transfers vs. bank transfers including fees, speed and which transfer method is best for you. You will also discover Wise, a smarter alternative for sending and receiving money. You can send and receive your money in Canada or abroad – all without the constraints of a traditional banking system.

This guide will help you with:

Understanding wire transfers in Canada What is a wire transfer? How long do wire transfers take? How much do wire transfers cost in Canada? Best use cases for wire transfers Understanding bank transfers in Canada What is a bank transfer? How long do bank transfers take? Bank transfer costs in Canada When to use a bank transfer Differences between wire transfers and bank transfers How Canada’s big banks handle transfers Limitations of traditional transfers Wise – A smarter alternative for international transfers What is Wise? Why Wise is better for international transfers

Understanding wire transfers in Canada

A wire transfer is an easy way to send large sums to friends and family in Canada. Here’s how it works.

What is a wire transfer?

A wire transfer is an electronic transfer of money between financial institutions.

When you initiate a wire, your bank will first check that you have the necessary funds in your account. The provider will then transfer the money over to your recipient’s bank.¹

To send a wire transfer, you’ll need your recipient’s:

• name and address
• bank account number
• transit number
• bank identification number

You may also need to provide your transfer amount, currency and transaction date.²

You’ll typically send your wire through a bank or credit union. Although some banks allow for online transfers, you may need to visit your branch in person.

How long do wire transfers take?

The speed of your wire transfer can depend on your bank’s processing policy and when you want to send your wire.

Wire transfers usually take 1–5 business days, but domestic transfers are usually quicker than international ones.³

Your transfer may take longer to reach your recipient if it needs to pass through an intermediary bank. Many providers rely on these banks to process your transaction, but they can slow down your payment.

How much do wire transfers cost in Canada?

You’ll typically pay an outgoing fee to send a wire transfer. You may also pay an incoming fee to receive a wire from another bank.

If your bank uses an intermediary or correspondent bank, you may pay a fee to that provider, too. Your bank will also likely charge a currency conversion fee for transfers in a currency other than Canadian dollars.

Best use cases for wire transfers

You can use wire transfers to pay for anything, but they’re most commonly used for large transactions, like transferring the down payment for a new home.

You can also use a wire transfer to send secure funds abroad or make direct bank-to-bank transfers.

Understanding bank transfers in Canada

Bank transfers are a quick and easy way to send money. Let’s take a look at everything you need to know.

What is a bank transfer?

A bank transfer is an online transfer between 2 bank accounts. Your money usually goes straight from your account to the recipient’s..¹

Bank transfers include popular payment methods like Interac® e-Transfer, Automated Clearing House (ACH) and Electronic Funds Transfer (EFT). You can initiate all of these transfers through your online bank account.

How long do bank transfers take?

Domestic EFT payments are typically processed on the next business day,⁴** **whereas ACH payments may be processed in just a matter of hours.⁵

Interac e-Transfers will likely reach your recipient within 30 minutes, depending on your provider.⁶

Bank transfer costs in Canada

Many banks offer online bank transfers for free. You can simply log into your bank account to start the transfer process.

However, some transfers come with costs. For example, RBC® lets users send 999 Interac e-Transfers every month, before charging 1 CAD per transfer.⁷

If you want to send money abroad, your bank will likely add a foreign transaction fee and currency conversion charge for global transfers. And those costs can add up fast.

When to use a bank transfer

Bank transfers may be best suited to domestic payments, as many banks add a markup to the standard exchange rate for currency conversion.

Unlike a wire transfer, a bank transfer is better for small, everyday payments, such as paying bills, sending money to friends or spending at the grocery store.

Bank transfers are typically processed on the same day, and you can make them yourself via online or mobile banking.

Differences between wire transfers and bank transfers

Here’s how wire transfers compare to bank transfers.

Feature	Wire transfer	Bank transfer (Interac, EFT, ACH)
Speed	1 to 5 business days	Depends on transfer method – some will reach your recipient within minutes
Cost	Costs can range from 15 CAD to 80 CAD per wire transfer, depending on your provider	Depends on the payment method and your bank – some may be free
International use	You can send an international wire transfer, but global transfers tend to be more expensive	You’ll need to look into your bank’s foreign transaction and currency conversion fees
Best for	Large transfers	Everyday payments
Information needed	You’ll need your recipient’s name, address, account number, transit number and bank identification number You’ll also need to include the amount, currency, and payment date.¹	You may need your recipient’s name, address, bank account number and routing number You’ll also need additional information for an international transfer⁸

How Canada’s big banks handle transfers

You can send both wire transfers and bank transfers with many major providers in Canada. Here’s what Canada’s major banks offer.

Bank	Wire transfers	Interac e-Transfers	EFT/ACH transfers
BMO®	Send a BMO wire transfer via your local branch¹⁷ Outgoing BMO wire transfers cost 40 CAD¹⁸	You can send money via Interac e-Transfer – use online banking or the BMO mobile app¹⁷	You can set up an EFT online – you may only be able to send and receive money in Canada¹⁹
CIBC®	CIBC wire transfers range from 30 CAD to 80 CAD, depending on your transfer amount²⁰	Set up automatic recurring Interac e-Transfers via CIBC Interac e-transfers are included with some accounts, but you may need to pay 1.50 CAD per transfer²¹** **	You can send an EFT from your CIBC business account. You can also send an ACH payment Costs may apply²²
RBC	You can only send an RBC wire transfer in person⁹ RBC wire transfers start at 45 CAD per transfer¹⁰	Send an RBC Interac e-Transfer via online banking or the RBC mobile app⁷	Businesses can send digital EFTs via RBC online banking¹¹
Scotiabank®	You’ll pay a fee to receive money via wire transfer – Scotiabank charges 15 CAD per incoming wire Speak to your bank about availability and costs¹⁴	Use your Scotiabank account to send money via Interac e-Transfer You can also request money from a friend at no extra cost to them¹⁵	Use Scotiabank Commercial Banking to send ACH payments¹⁶
TD®	Send a wire transfer via your local TD branch To send a wire to another TD account, you’ll pay 16 CAD per transfer To send a wire to a non-TD account, you’ll pay 50 CAD per transfer¹²	Send and receive money via Interac e-Transfer TD Interac e-Transfers cost 0.50 CAD for transfers up to and including 100 CAD – transfers over 100 CAD cost 1 CAD Some accounts qualify for free transfers¹²	You can send digital transfers via TD Bank – you’ll need to enable your account for ACH transactions and online banking transfers¹³

Limitations of traditional transfers

Wire transfers are a secure way to send money in Canada and abroad. However, they often come with large costs – and you may not be able to send your wire transfer online, which can be inconvenient.

Bank transfers are also very useful. They tend to be cheaper and quicker than wire transfers, but you can’t usually send large sums. Interac e-Transfers are often limited to 2000 CAD to 3000 CAD, for example.²³

Wise – A smarter alternative for international transfers

Wise is a better way to send money abroad. You can send money to 160 countries – all from one handy mobile app. Here’s how it works.

What is Wise?

Use your Wise account to:

• send transfers in over 40 currencies worldwide
• get up to 9 local currency account details
• spend money in over 150 countries

It’s easy to open a Wise accountfrom your phone. Simply register online or via the Wise app.

Why Wise is better for international transfers

Whether you’re sending money to France or buying groceries in the US, Wise has got you covered!

While international wire transfers can cost up to 80 CAD per transfer, you can send a speedy Wise transfer from just 0.48%^* per transaction.

Open an account in multiple currencies to send local-currency payments to friends and family across the world.

With Wise, you always get the mid-market exchange rate —no hidden markups. This is the only ‘fair’ rate for currency conversion, with no markups or hidden fees for global transactions. Simple!

Conclusion

Both wire transfers and bank transfers will move your money where it needs to go. Wire transfers may be best for large payments overseas, whereas bank transfers are better suited to everyday transactions.

With Wise, you get the best of both worlds. Send and receive money in local currency to avoid hefty exchange rate costs and international fees.

Want to make the most of your money abroad? Try Wise.

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Sources:

1. Western Union - What’s the difference between a wire transfer and a bank transfer?
2. Western Union - What information is needed for a wire transfer in Canada?
3. Western Union - How long does a wire transfer take in Canada?
4. Western Union - How long does a bank transfer take?
5. NACHA - ACH payments fact sheet
6. Interac - Interac e-Transfer
7. RBC - Interac e-Transfer
8. Bank Codes - How to make an international ACH transfer
9. RBC - Wire transfer
10. RBC - Additional account services
11. RBC - Transfer funds digitally and securely with Electronic Funds Transfers (EFTs)
12. TD Bank - List of services & fees
13. TD Bank - TD Bank digital payments
14. Scotiabank - Bank account fees at a glance
15. Scotiabank - Interac e-Transfer
16. Scotiabank - ACH payments
17. BMO - How to send money online
18. BMO - Agreements, bank plans and fees for everyday banking
19. BMO - Electronic Funds Transfers
20. CIBC - How to send or receive a wire transfer
21. CIBC - Interac e-Transfer
22. CIBC - Small business 101
23. Interac - How to send money with Interac e-Transfer

Sources verified on 28 April 2025