So you’ve chosen a Credit Union that will work for you - now all that’s left is to close your account, and transfer your funds to that credit unions. We’ve put together a detailed step by step guide to closing and switching your account.
Open an account at your new institution! Keep in mind that many credit unions require that, unless a parent or guardian has an account, you are the age of majority in your province (18 or 19) to join. Making an appointment is recommended before visiting a branch. Don’t forget to bring the required forms of identification with you to the branch. The financial institutions may let you sign-up online or by phone instead. Credit unions require a cash deposit between $1 and $25 to activate your new account. If you decide to leave, you will get this deposit back, along with any dividends it has accumulated.
Review your transaction history. Make a list of all pre-authorized payments on your current account. You’ll need to set these up on your new account before closing your current one. These might include, for example, credit card payments, bills (phone, utilities), insurance, memberships, etc. Some credit unions offer ClickSWITCH to automate steps 2 and 3; ask your member services representative if you are interested in this service.
Set up pre-authorized debit and deposits on your new account using the list you created in step 1. This will help you avoid Non-Sufficient Fund (NSF) fees. It can take a few weeks for direct deposits to get redirected when you change banks. We recommend keeping your old bank account open until your direct deposits start appearing in your new account.
If you are employed, ensure your employer has your new account details to facilitate the direct deposit of your earnings. It may take a couple of weeks for them to update this information.
If you receive CRA payments via direct deposit, ensure you update your bank details. Additionally, if you sign into government services using your bank login, you will need visit the login page and click Switch My Sign-In Partner below the Interac logo.
Confirm that all pending payments have cleared. Pre-authorized payments or cheques to be deposited into or debited from your account will be returned if you do not switch them to your new account.
Withdraw your funds from your old account. To avoid closing fees, you can send an Interac e-Transfer or write a cheque with your full account balance from your old account to your new one. Alternatively, your bank can transfer your funds for a small fee (see below).
Credit Cards: Be advised your credit score may be negatively affected. The older the card, the greater the impact. Credit cards are separate from your chequing and savings accounts, so you can close these accounts and leave your credit card open, if necessary. If you want to close your credit card account, all it takes is a phone call or branch visit. If you still have an amount owing on your card, credit unions typically allow balance transfers and have lower interest rates than banks.
Registered Investments: Transferring your account, such as a TFSA or RRSP, to another institution will cost between $50 and $150. Talk to your new financial institution, as they will be able to help with the transfer paperwork and may be willing to cover associated costs.
Fill out and print the following letter. When you go to close your account, you will be asked why you’d like to. You can request to see the manager to deliver them your letter explaining why, or give it to your bank teller to deliver, and request that they send it up the chain. You might also consider asking for the manager’s contact information to follow up on your request. If printing is not accessible to you, you can still voice your concerns when asked why you’re closing your account.
Close your account! All banks allow you to close your account in-person. Be sure to save account statements ahead of time, as access to online banking will be disabled.
RBC allows customers to close their account by calling 1-800-769-2511 or sending a secure message through online banking.
TD allows customers to close their accounts by calling 1-866-222-3456.
Scotiabank and BMO will only allow you to close your account and leave their institution in-person.
CIBC allows customers to close their account by calling 1-800-465-2422.
Congratulations! You’re now out free from a fossil-fuel financing bank!
Send us an email to let us know you’ve fulfilled the pledge. You can email us at info@bankingonabetterfuture.org. This helps us keep track of numbers and our collective impact. We would love to hear about how the experience went. If you took any photos, please attach those and we will use them in our promotions.