Closing a bank account in Canada is straightforward if you prepare properly. Rushed closures lead to bounced payments, redirected direct deposits that miss their target, and NSF fees on pre-authorized debits that still hit the old account after you think it is closed.
The closure itself takes minutes. The preparation takes one to two weeks — and it is the part that matters.
Before You Close: The Preparation Checklist
Do all of this before you request closure.
1. Open Your Replacement Account First
Open and fully activate your new account before closing the old one. This means:
- Account is open and accessible
- You have received your debit card and activated it
- You have confirmed the new institution number, transit number, and account number
Never close an account before its replacement is ready. Even one missed direct deposit during a gap period creates problems.
2. Redirect Direct Deposits
Contact your employer’s payroll department and provide your new banking details. Most payroll changes take one to two pay cycles to take effect. Continue to monitor the old account until you confirm at least one paycheque has successfully landed in the new account.
Other sources of direct deposit to update:
- Government of Canada payments (CRA tax refunds, GST/HST credit, CCB) — update through My Account on the CRA website
- CPP, OAS, or EI payments — update through Service Canada
- ODSP, Ontario Works, or other provincial benefit payments — contact the relevant provincial ministry
3. Identify and Cancel or Transfer Pre-Authorized Debits
Review three months of bank statements and list every recurring payment that comes out of the account. Common ones:
- Rent or mortgage payment
- Insurance premiums (car, home, life)
- Utility bills (hydro, gas, internet, phone)
- Streaming subscriptions (Netflix, Spotify, etc.)
- Gym or fitness memberships
- CRA pre-authorized tax installments
- Investment contributions (TFSA, RRSP automatic deposits)
- Loan or credit card payments
For each one: either update the payment details with the merchant to point to your new account, or cancel the pre-authorized debit through the old bank and set it up fresh with the new one.
Important: Cancelling a pre-authorized debit at your bank does not cancel the underlying service. You need to do both — update the merchant and cancel the bank authorization — or the merchant will simply initiate a new debit request and it will be returned NSF, triggering a fee.
4. Allow Outstanding Cheques to Clear
If you have written any cheques recently, do not close the account until they have cleared. A cheque can be presented up to six months after the date written in Canada — but for practical purposes, any cheque you have written in the last 30 days should be confirmed cleared before you close.
5. Drain the Balance (But Not Completely)
Transfer the bulk of your balance to your new account, but leave a small amount — $50 to $100 — as a buffer in case any pending transactions clear after you think you are done. You will transfer this remainder at the time of actual closure.
How to Close Your Account: By Institution
Tangerine
Closure can be initiated through Tangerine’s secure message centre in online banking. Send a message requesting account closure and specify where to transfer your remaining balance. The process typically takes two to five business days.
EQ Bank
Contact EQ Bank through the in-app messaging feature or by phone. They will process your remaining balance to an account you designate.
Simplii Financial
Simplii allows closure requests through secure messaging in online banking or by phone at 1-888-723-8881.
RBC
RBC typically requires a phone call (1-800-769-2511) or a branch visit to close a personal account. Some closures can be initiated through Royal Direct online banking messaging.
TD
TD requires a call to 1-866-222-3456 or an in-branch visit to close a personal chequing or savings account.
Scotiabank
Scotiabank generally requires an in-branch visit or a call to 1-800-472-6842.
BMO
BMO requires a call to 1-877-225-5266 or a branch visit.
CIBC
CIBC allows closure requests through CIBC Online Banking secure messaging in many cases. You can also call 1-800-465-2422.
What Happens When the Account Closes
When you submit your closure request:
- Pending transactions settle — the bank may keep the account open for a few days to allow in-flight transactions to clear
- Remaining balance is returned — transferred to your designated account or issued as a bank draft
- Account number is deactivated — any new transaction attempts (a direct deposit you forgot to redirect, a pre-authorized debit) will be returned or rejected
- Confirmation is provided — request written confirmation of closure for your records
Keep your old debit card and statements accessible for at least 60 days after closure in case a dispute or transaction question arises.
Closing an Account With a Negative Balance
If your account is overdrawn at the time you want to close it, you must first bring it to zero — either by depositing funds to cover the negative balance or by negotiating a repayment with the bank. Banks will not close an account with an outstanding debt.
If you close an account and a negative balance arises afterward (a debit that posts after you leave), the bank will pursue the debt separately. A balance that goes unpaid can be sent to a collections agency, which would appear on your credit report. Respond promptly to any communication from your former bank about post-closure balances.
Dormant Accounts and Unclaimed Balances
If you simply stop using an account without formally closing it, it will eventually become dormant. In Canada, a bank account becomes unclaimed after 10 years of inactivity with no contact from the account holder. At that point, the bank is required to transfer the balance to the Bank of Canada.
You can claim unclaimed balances from the Bank of Canada at any time — there is no deadline — through the Bank of Canada’s unclaimed balances search. There is no fee to claim your balance.