Pretty much every Canadian has a bank account. So it makes sense to ensure that you have the best savings account for you (and chequing too) by shopping around. If you’ve decided to move on from your current bank, it’s important to close your old account carefully so nothing gets lost in the transition—overdraft fees, missed payments and forgotten automatic withdrawals can all cause problems. Below you’ll find clear, practical steps to close a bank account in Canada and avoid common pitfalls.
Watch MoneySense: How to close a bank account
Closing a bank account is straightforward if you plan ahead. Start by gathering your account number(s) and any recent statements. Make a list of all automatic transactions that use the old account: direct deposits such as payroll, government benefits, investment contributions, and pre-authorized debits for utilities, subscriptions and insurance. You’ll also want to identify any linked services such as overdraft protection, lines of credit, or recurring transfers to savings.
Step-by-step checklist to close your bank account
- Open your new account first: Before closing the old account, open the account you intend to use. Make sure it’s set up to receive e-transfers, direct deposits and bill payments so you can move everything over smoothly.
- Move regular deposits and payments: Update your employer, pension provider, or benefits issuer with your new banking information, and switch any automatic bill payments or subscriptions to the new account. Keep a record of each change and the date you made it.
- Transfer your balance: Move your available funds to the new account. Leave enough in the old account for any outstanding transactions or pending debits to clear.
- Cancel or transfer overdraft/linked services: Remove overdraft protection or linked products, or transfer them to your new account as needed. Leaving these in place can create unexpected fees.
- Wait for outstanding items to clear: Keep the old account open for a short period—until you’re confident no cheques, pre-authorized debits or pending transactions remain. This may take several weeks depending on your activity.
- Close the account in writing or in person: Contact your bank to confirm their preferred closing procedure. Some banks accept online or phone requests; others require a signed form or an in-branch visit. Ask for a written confirmation or final statement showing the account is closed and the balance is zero.
- Destroy cheques and cards: Once the account is closed and you have written confirmation, securely destroy old cheques, debit cards and any documents that include the account number.
- Monitor for surprises: After closing, periodically check your new account for any missing payments or returned items. Keep the final statement from the closed account for your records.
Common issues and how to avoid them
Missed direct deposits: If you delay updating your employer or benefit providers, deposits may go to the old account and be returned, causing delays. Update payees early and confirm receipt in the new account.
Automatic withdrawals: Subscriptions, utilities and loan payments tied to the old account can be rejected or returned. Make a comprehensive list of recurring payments and contact each provider to update your payment details.
Overdraft and pending transactions: Leaving a small buffer in the old account helps avoid overdraft fees while outstanding items clear. Confirm with your bank whether any holds or pending transactions remain before requesting closure.
After you close the account
Get and keep written confirmation that the account has been closed with a zero balance. Keep this paperwork in case of disputes or future questions. Review your credit and banking history periodically to ensure no unexpected activity appears related to the closed account.
Read more on banking:
- The best chequing accounts in Canada
- Switching to a better bank account
- The best banks in Canada
- WATCH: How to find the best online bank account