How to close bank accounts before leaving Canada?

When it's time to leave Canada permanently or for an extended period, closing your bank accounts properly is an essential step in finalizing your financial life in the country. A careless approach to this step can result in unwanted fees, unknown transactions, loss of funds, and even damage to your credit history. In this article, we will walk you through a comprehensive step-by-step guide, from the preparatory stage to the final closure and confirmation, so that you can dot all the i's and cross all the t's before you move.

Preparing to close accounts

It is best to start the process a few weeks before your departure date. First, you should take inventory of all your active accounts: checking, savings, GICs, credit cards with open balances, overdraft lines, investment accounts at the same institutions or related services. At the same time, you should prepare final statements for each account — these documents are sometimes requested for long-term closures and to confirm that there are no remaining balances.

Check in advance whether any automatic payments or direct deposits are linked to your bank account. Such services include monthly rent payments, mobile phone subscriptions, insurance, utility bills, and salary transfers from your employer. After closing your account, all outstanding automatic payments will be rejected, and you will face late fees and penalties from other services. Therefore, before leaving, you should either transfer each of these services to a new account in another country or cancel them.

Withdrawing funds and redirecting payments

Once you have completed your inventory, you should transfer all your cash and account balances to other accounts in a timely manner. If you have opened a bank account in your destination country for your departure, it is best to use leading fintech services or international transfers such as SWIFT, ABFT, or SEPA, depending on the region, to minimize fees and processing times. If you have small balances remaining, you can withdraw them in cash directly at the bank.

It is also important to talk to your employer if you are receiving your last salary or bonus. Make sure that they will be transferred to the correct account and notify the accounting department of the change in details one month before your departure. This will help avoid funds being returned due to the absence of an active account.

Contacting the bank and filling out the closure form

Each Canadian financial institution has its own account closure procedure. At most major banks (RBC, TD, Scotiabank, BMO, CIBC), you can initiate the closure either at a branch, via online chat, or through a contact center. To close current and savings accounts, it is usually sufficient to fill out a written application or online form with your details, account details, and the final closing date.

For credit cards and overdraft lines, you often need to pay off the entire balance and any accrued interest. Wait for final confirmation from the bank that there are no outstanding debts and only then submit your closure request. In the case of investment accounts and GICs, you must take into account the maturity dates of deposits and possible penalties for early termination. Sometimes it is easier to transfer your portfolio to another jurisdiction through an internal brokerage service, if provided for in the agreement.

Checking balances and confirming closure

After submitting the application, you should select the final date for checking the balance — preferably the day before the final withdrawal of funds. The bank is required to issue a final statement and an official confirmation letter stating that the account balance is zero and all obligations have been fulfilled. Keep these documents in paper and electronic form along with your other financial records.

If the closure was initiated online or through a call center, check your email and banking app for confirmation messages. Ideally, you should see an account with a Closed or Dormant status but a zero balance.

Additional aspects and further actions

Even after closing your accounts, unexpected transactions or refunds to old account details may sometimes occur. To avoid losing money, arrange with your bank to maintain correspondence: they can forward notifications to you by email or provide access to retrospective statements via online banking.

Also, don't forget to unlink your bank details from online platforms such as PayPal, Amazon, Netflix, and others. Keeping your details up to date on your new account is much safer than allowing unauthorized withdrawals or rejected payments to ruin your credit rating.

Final thoughts

Closing bank accounts before leaving Canada is a process that requires careful planning and precision. Coordinating dates, checking automatic payments, transferring funds on time, and documenting the closure of each account will help you avoid financial hassles, unexpected fees, or even disputes with your bank in the future. By spending a little time preparing and following the steps outlined above, you can leave Canada with peace of mind, without worrying about your former accounts and funds.