Question 1

What is a transit number in Canada?

Accepted Answer

A transit number (also called a branch number) is a 5-digit code that identifies a specific bank branch in Canada. It is assigned by Payments Canada and used for electronic fund transfers (EFT), direct deposit, and pre-authorized payments. Combined with the 3-digit institution number, it appears as an 8-digit block (transit then institution, no leading zero) on a printed cheque's MICR line, or as part of the 9-digit electronic EFT routing number (leading zero + institution + transit) used for direct deposit.

Question 2

What is an institution number in Canada?

Accepted Answer

An institution number is a 3-digit code assigned to each federally or provincially chartered financial institution in Canada by Payments Canada. For example: RBC is 003, TD is 004, Scotiabank is 002, CIBC is 010, BMO is 001, EQ Bank is 623, Tangerine is 614, and Simplii uses CIBC's 010.

Question 3

What is an NSF fee in Canada?

Accepted Answer

An NSF (Non-Sufficient Funds) fee is charged when a transaction is presented against your account but there is not enough money to cover it. As of March 12, 2026, federal regulations cap NSF fees at $10 per occurrence at all federally regulated banks — down from the pre-2026 $45–$48. EQ Bank continues to decline the transaction without charging a fee at all. Keeping a buffer in your account still helps you avoid the fee and any payee-side returned-payment charges.

Question 4

How does Canadian bank routing work for direct deposit?

Accepted Answer

Canadian EFT routing uses a 9-digit format: a leading zero, followed by the 3-digit institution number, followed by the 5-digit transit/branch number (0IIITTTTT). For example, TD (institution 004) at a hypothetical branch transit 00001 would be 00400001. This is the reverse order from a printed cheque's MICR line, which shows transit before institution. For CRA direct deposit, you enter your transit number, institution number, and full account number separately.

Question 5

What is overdraft protection in Canada?

Accepted Answer

Overdraft protection is a bank service that covers transactions when your account balance drops below zero. Big 5 banks typically charge a monthly fee plus interest on the amount overdrawn — confirm current rates with your bank, as these vary and change over time. Digital banks like Simplii and Tangerine generally don't offer overdraft. EQ Bank declines transactions at $0 rather than going negative.

Canadian Banking Basics 2026 — Transit Numbers, Institution Numbers, NSF Fees Explained

Canadian Banking Basics — Guide Index

Routing Numbers

Fees and Account Features

Quick Reference: Canadian Institution Numbers 2026

Quick Reference: NSF Fees 2026

Bank-Specific Routing Guides

Bank	Institution Number
BMO	001
Scotiabank	002
RBC	003
TD	004
CIBC	010
Tangerine	614
EQ Bank	623
Simplii Financial	Uses CIBC (010)

Bank	NSF Fee (from March 12, 2026)
RBC	$10 (federal cap)
TD	$10 (federal cap)
Scotiabank	$10 (federal cap)
CIBC	$10 (federal cap)
BMO	$10 (federal cap)
Tangerine	$10 (federal cap)
Simplii	$10 (federal cap)
EQ Bank	$0 (declines)