How to close a bank account in Canada: the checklist, the timeline and the fees
Closing an account sounds like one click. In practice the trouble comes from the things still wired to it: a gym debit you forgot, an insurance premium that comes out twice a year, a cheque you wrote last month. Here is the order the Financial Consumer Agency of Canada (FCAC) lays out, a planner that puts dates on every step, and what happens to an account you simply walk away from.
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When can you safely close the old account?
| Step | Do it by |
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The planner spaces the FCAC steps over the overlap period you choose. The FCAC suggests keeping the old account open for several months; three is the default here. The worst-case NSF figure assumes each automatic payment bounces once at the $10 maximum that federally regulated banks and credit unions can charge on personal deposit accounts. Fees are your own inputs; the $16.95 default is an example, not any bank's price.
The six steps, in order
The FCAC's guide to moving your chequing and savings accounts lays out the order. In plain terms:
- List everything connected to the account. Go through the last year of transactions for pre-authorized debits (PADs), and list every direct deposit: pay, pension, government benefits. Check your bills and budget for anything that comes out yearly or twice a year.
- Open the new account. Banks, federal credit unions and authorized foreign banks must open a deposit account for you if you meet the conditions. Our guide to opening a bank account covers the ID you need.
- Move your money. A transfer between your own accounts, an Interac e-Transfer, a wire or a bank draft all work. Ask which is cheapest for the amount.
- Move direct deposits and PADs. Give your employer, the CRA and every biller the new account details. Ask your bank if it can transfer your PADs for you. If not, set them up on the new account and cancel them on the old one.
- Review before you close. Confirm you can log in to the new account, your new debit card works, deposits are arriving, every PAD has moved, and you have put stop payments on any cheques you wrote that have not cleared.
- Close the old account. You have to ask your bank to close it. Cutting up the card or emptying the balance does not close it.
After closing, the FCAC suggests asking the old bank for a list of the accounts and services it closed, cancelling your online banking access, and checking your credit reports. Credit bureaus generally take 30 to 90 days to update, so check again after that. Our guide to checking your credit shows how to pull both reports for free.
Moving and cancelling pre-authorized debits
PADs are where switches go wrong, because the biller pulls the money, not you. What the FCAC says:
- Cancel with the biller, in writing. To cancel a PAD agreement you must notify the biller in writing and keep a copy. Your agreement should explain how.
- Cancelling the PAD does not cancel what you owe. It only changes how you pay. You still need to arrange payment with the biller.
- If debits keep coming after you cancel, contact the biller. If you are not satisfied, you have 90 days to seek reimbursement through your financial institution.
- Debits you did not approve, or ones for the wrong amount or date, can usually be reported to your bank within 90 calendar days of the withdrawal. After that, the bank does not have to reimburse you.
- A stop payment from your bank can cancel a single payment, and sometimes recurring ones. Ask how long it takes to process.
Automatic payments you set up yourself in online banking are different. You can change or cancel those on your own at any time. If you are hunting for charges you forgot about, our subscription cleanup guide walks through a statement line by line.
Closing fees and other costs
The FCAC's guidance is short: when you ask to close a chequing or savings account, you may have to pay a fee. Check the terms and conditions of your account agreement for closing fees. Federally regulated banks must give you a list of the service charges on your account, so ask for it if you cannot find it.
Other costs to plan for:
- Overlap fees. If the old account charges a monthly fee, you pay it for every month you keep it open. That is the price of safety, and the planner shows it.
- NSF charges. A debit that hits the old account after you moved the money can bounce. At a federally regulated bank or credit union, NSF fees on personal accounts are capped at $10, can only be charged once per account in two business days, and cannot be charged if the shortfall is under $10. See our NSF fee guide.
- Money you owe the same bank. If you have a loan, line of credit or card at the same bank, it may have a right to take money from your deposit account to cover an overdue debt. Settle or move those first.
- Registered accounts. RRSPs, TFSAs, RESPs and RDSPs move with transfer forms, not by withdrawing and redepositing. Withdrawing can cost tax or room.
Worked example: Daniel's three-month overlap
Daniel pays $16.95 a month for a chequing package he barely uses. He opens a no-fee account on October 20, 2026 and finds 6 things tied to the old account: his pay, a GST/HST credit deposit, rent, phone, car insurance, and a streaming service.
- He keeps the old account open 3 months, so he plans to close it on January 20, 2027
- Overlap fees: $16.95 × 3 = $50.85
- Saved each year after closing: ($16.95 − $0) × 12 = $203.40
- Worst case if every one of the 6 payments bounced once on the old account: 6 × $10 = $60 in NSF fees, before any late fees from the billers
The overlap costs him about three months of fees and pays for itself in the first quarter after closing. The bigger risk is the one-off: his car insurance renews in December and was easy to miss. That is exactly why the FCAC suggests keeping the old account open for a while.
Before paying for a new package at all, check whether you qualify for a no-fee account or the federally agreed low-cost account.
If you just stop using the account
Walking away is not the same as closing. A forgotten account can keep charging a monthly fee until the balance is gone. If the balance sits untouched, the Bank of Canada explains what happens next at federally regulated banks and trust companies:
- The bank must send a dormancy notice after 2, 5 and 9 years of inactivity, by mail and by email if it has both.
- After 10 years of inactivity, the balance is transferred to the Bank of Canada's Unclaimed Properties Office, once a year between mid-November and December.
- Balances under $1,000 are held for 30 years, and $1,000 or more for 100 years. There is no fee to claim.
If you think you have an old account somewhere, you can search the Bank of Canada's unclaimed properties database. If your bank is the one closing your account, that is a different situation; see can my bank close my account.
Options people compare
| Approach | Upside | Watch for |
|---|---|---|
| Close right after switching | No overlap fees | Missed debits bounce; yearly bills are easy to forget |
| Keep old account open a few months | Catches stragglers; FCAC suggests it | Monthly fee during the overlap |
| Downgrade the old account instead | Keep the account history and debits without the fee | Check what the cheaper plan includes |
| Leave it open and unused | Nothing to do today | Fees can drain it; dormancy rules after 2 years |
More money math, including the low-cost account check, is on the tools page.
How to close a bank account in Canada
- List every pre-authorized debit and direct deposit from the last year of statements.
- Open the new account and confirm you can log in and use the debit card.
- Move your balance with a transfer, e-Transfer, wire or bank draft.
- Give your employer, the CRA and every biller the new account details, and cancel old PADs in writing with each biller.
- Keep the old account open for a few months and watch for anything still landing on it.
- Ask your bank to close the old account, check for a closing fee, and cancel online banking access.
- Check your credit reports after 30 to 90 days to confirm the account shows as closed.
Questions people ask
How do I close a bank account in Canada?
Ask your financial institution to close it. Before you do, the FCAC suggests opening the new account, moving direct deposits and pre-authorized debits, stopping any uncleared cheques, and keeping the old account open for a while to catch anything you missed.
Is there a fee to close a bank account in Canada?
There can be. The FCAC says you may have to pay a fee to close a chequing or savings account, and tells you to check the terms of your account agreement for closing fees.
Can I close a bank account online?
It depends on the bank. Some let you request a closure online or by phone, others need a branch visit. Either way, the closure happens only when you make a request; emptying the account does not close it.
How do I cancel a pre-authorized debit when I switch banks?
Notify the biller in writing and keep a copy. Cancelling the PAD does not cancel what you owe, so arrange another way to pay. If debits continue, contact the biller, and you have 90 days to seek reimbursement through your financial institution.
How long should I keep my old account open?
The FCAC suggests keeping it open for several months so cheques and debits you missed do not bounce. Three months catches most monthly and quarterly bills; longer if you have yearly payments.
What happens if I just stop using my bank account?
Monthly fees can keep coming out. At federally regulated banks, dormancy notices go out after 2, 5 and 9 years of inactivity, and after 10 years the balance is sent to the Bank of Canada, where you can still claim it for free.
Will closing a bank account affect my credit score?
A chequing or savings account is not credit, so closing it does not usually appear as a credit account. Closing a credit card or line of credit is different and can change your utilization.
Looni reads your statements and lists recurring charges and fees with the proof attached, so nothing is left behind when you switch. Read-only, no advice.
Sources
Financial Consumer Agency of Canada, Transferring your products or services to another financial institution (the six steps, keeping the old account open for several months, closing fees, credit reports updating in 30 to 90 days), Pre-authorized debits (cancel in writing with the biller, the 90-day reimbursement window, stop payments) and Chequing accounts ($10 NSF cap, list of service charges) and When a financial institution can take money from your account (right of offset); Bank of Canada, Unclaimed bank balances (2, 5 and 9 year notices, 10-year transfer, holding periods). Example fees are illustrative.
Closing or splitting a shared account? Read how joint bank accounts work in Canada first.
Think you left money in an old account? See how to find unclaimed bank balances in Canada, with a dormant account timeline calculator.
Moving to a new bank rather than just closing? Follow the step-by-step switching checklist and planner.