To close a bank account in Canada, you typically need to speak with a bank representative over the phone or in person, at a branch. A few banks let you close accounts online, but this isn't common practice.
Before making the request to close your account, be sure to transfer your balance, switch over any direct deposits or auto-payments, and pay any requited closing fees.
Understanding how to close an account is an important part of personal finance and banking Canada. Below, you'll find more details to help close your account smoothly.
Key Takeaways
- You can close a bank account in Canada by phone, online, or in-branch, depending on the bank and account type.
- Before closing your account, it’s recommended that you first set up your replacement bank account.
- Closing a bank account is usually fee-free and doesn’t affect your credit score, but some conditions can apply.
- Bank records are kept for seven years after closure.
How to close a bank account
Though the process for closing a bank account can vary from bank to bank, here are the most common steps you can expect to take:
- Set up your new account: Open a new account to manage your current funds and financial activities.
- Clear outstanding fees: To close your account in good standing, pay any owed fees or charges. Not doing so may impede your ability to close your account or lead to credit issues in the future.
- Redirect scheduled payments: Make sure to transfer all of your direct deposits, automatic payments, and debits to your new account.
- Transfer your funds to your new account: Move all remaining funds to your new account via cash, cheque, or digital funds transfer. This will make it easier to close your old account since the bank employee won't have to deal with fund transfers.
- Close your account: Visit your nearest branch, call the bank's customer service line, or check online for account closure options. Be aware that not closing your account in-branch may incur fees.
- Verify the account is successfully closed: Once you're finished speaking with the bank employee, make sure your account was closed by trying to sign into your account. This can help avoid any future issues, such as dormancy fees.
But which method should you go with to close your account? Here's an overview of each:
| Method | Pros | Cons |
|---|---|---|
| In the branch | * Usually quick and easy * Least likely to involve a fee * Easy to fix any issues that may come up | * Inconvenient to get to the branch during business hours * Could be a line |
| Over the phone | * Convenience of not having to leave your home * Customer service agent may be able to help fix any hiccups that come up | * Could incur a fee, depending on the bank and your other accounts with them * Could have long wait times |
| Online | * Fast * Convenient | * May incur a fee * Not available for a lot of bank accounts * Only possible for easy situations that don't require assistance |
How to close a bank account with Scotiabank
There's just one verified way to close a Scotiabank account:
- Visit a branch: Bring valid identification and speak with a representative.
If closed within 90 days of opening, there's a $20 fee.
Scotiabank doesn't offer an option to close accounts via online banking. However, you may be able to contact customer service on the phone and close the account with their assistance.
How to close a bank account with RBC
There are two ways to close an RBC account:
- Visit a branch: Bring valid identification and speak with a representative.
- Call customer service: Contact RBC's customer service at its toll-free number.
- Online banking: Some accounts may be closed by sending a secure email through RBC's online banking portal.
If closed between 16-90 days after opening, there's a $15 fee.
How to close a bank account with TD
There are two ways to close a TD account:
- Visit a branch: Bring valid identification and speak with a representative.
- Call customer service: Reach out to TD's customer support.
You cannot close your TD account through online banking, but you can change the account type online.
How to close a bank account with CIBC
There's just one verified way to close a CIBC account:
- Visit a branch: Bring valid identification and speak with a representative.
This option isn't listed on the CIBC website, but it's likely that you can cancel your account by speaking with a customer service agent over the phone.
There's no fee to close your account, but CIBC charges $19.50 to transfer to a different institution. There's a $100 fee for transferring an RRSP, RRIF, TFSA, and a few other registered accounts from CIBC.
How to close a joint bank account
Closing a joint bank account in Canada typically requires the consent of all account holders.
Here's how to proceed:
- Settle outstanding transactions: Ensure all pending transactions have cleared and the account balance is zero.
- Cancel automatic payments: Terminate any automatic payments or direct deposits linked to the account.
- Open a new account: You'll need somewhere to transfer your funds before closing the joint account, so open a new one (either with the same bank or elsewhere) first.
- Decide on remaining funds: Agree with the co-account holder(s) on how to distribute any remaining funds.
- Close the account: Visit the bank in person or follow their specified procedure to close the account.
It's important to communicate openly with co-account holders to ensure a smooth closure process. Some banks require verification from both/all parties when closing a joint account, but some only need one account holder's consent to proceed.
Always check with your financial institution for specific requirements.
How to close a bank account in special circumstances
Some types of bank accounts or specific circumstances could make closing a bank account harder than usual. This usually means you'll need to jump through a few extra hoops to get the job done, but it'll always be possible to close the account in the end.
Here's a look at a few specific circumstances.
- Kids account: The parent or guardian who opened the account can close it at any time, following the standard steps. If the child has outgrown the account, they'll usually be automatically switched to a non-youth account by the bank, and there's no need to close it.
- Inactive account: Depending on the bank, you may need to reactivate an inactive or dormant account before closing it.
- Overdrawn account: To close an overdrawn bank account, you'll need to pay any fees due before proceeding with the standard steps. If you're unable to pay these fees, you may be able to set up a payment plan with the bank.
- Deceased person's account: If closing a bank account on behalf of a deceased person, contact the bank and ask them what documents they require. This will likely include the death certificate and proof of identity.
Does it cost to close a bank account?
Generally, there are no fees associated with closing a chequing or savings account in Canada, aside from a few exceptions:
- Closing an account early (within 90 days of opening): $15 - $20
- Transferring account balance to another institution: $15 - $20
Some banks may charge you for closing an account over the phone instead of in-branch, so it may be a good idea to confirm this with the customer service agent if you choose to call in.
Pro tip: Simply transferring all of your direct deposits and debits to another account and ceasing activity in the account is not the same as closing it. Many banks charge hefty dormancy fees if your account is inactive for more than a year, so actually going through with the account closing is highly recommended.
As an example, here's how Scotiabank's inactivity fees work:
- 2 years of inactivity: $20
- 3 years: $20
- 4 years: $20
- 5 years: $30
- 6 years: $30
- 7 years: $30
- 8 years: $30
- 9 years: $40 + Account is transferred to Bank of Canada
In total, that would be $220 over 10 years that you pay your bank just for not using the account.
FAQ
Is there a fee for closing a bank account?
Yes, some banks charge fees for closing your account, but usually only for those that have just recently been opened. For instance, Scotiabank charges $20 to close an account within 90 days of opening it.
Is there a downside to closing a bank account?
Potential downsides include missing automatic payments, incurring early closure fees, or facing difficulties with pending transactions. If the account has a negative balance, the bank may send the debt to collections, which can negatively impact your credit score.
Can a bank refuse to let you close your account?
Yes, a bank can delay or refuse to close your account if there are pending transactions, unresolved fees, or account holds. In some cases, banks have closed accounts due to suspicious activity, emphasizing the importance of maintaining good account standing.
Do closed bank accounts affect your credit?
This will only affect your credit if the account has a negative balance that goes unpaid and is sent to collections. Ensuring your account is in good standing before closure is crucial to avoid potential credit issues.
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