Chances are you set up a Tangerine account for the low fees and high introductory interest rates. But for one reason or another, it’s not working out.
It might be time to close out your account and find a new bank. But don’t worry, you’re not alone. Many Canadians aren’t sticking with a bank just because it’s a hassle to switch.
Instead, they’re researching better options and finding a financial institution that fits their needs and goals.
If you’re in this group and need to learn how to close a Tangerine bank account, here are the steps you should take.
- Find another bank.
- Update your direct deposit and payment information.
- Transfer your funds.
- Close the account.
Before you close your account, research new banking options. You’ll need a new account to manage your bill payments and deposits.
When choosing your new bank, consider the following:
- Do you prefer online or brick-and-mortar?
- What is the interest rate on the account? Will it decrease after an introductory period?
- How much are the fees?
- Does the bank have other services you can use (i.e. mortgages, investments)?
If you’re looking for some solid options, browse my picks of the top chequing accounts.
You probably have automatic payments set up for some of your bills. Utilities, phone, and loan payments are common to be directly debited out of your account.
However, before you close that account, make sure you change the payment information to a new account so you don’t end up getting hit with a non-sufficient funds (NSF) fee.
It’s not just payments you have to worry about, either. Don’t forget to update any of your direct deposit information for your employer or expected government monies (income tax refunds, pension payments).
Also, before closing out the account, make sure you don’t have any outstanding cheques and make sure not to write out any new ones.
Once you have a new account set up, it’s time to make the transfer. You can do this using the online banking feature, make a cash withdrawal, or use a cheque.
If you’re closing out one of your investment accounts, it could take longer than the other accounts, so keep that in mind.
In addition, if possible, wait until the first of the month to make the money transfer. This way, any interest from the previous month will already be posted to your account.
If you make the transfer in the middle or at the end of the month, you will be due accrued interest. If you have another Tangerine account, any interest due to you may get deposited into that account.
However, it’s a good idea to contact customer service to get a clear picture of what will happen.
If you’re closing all your Tangerine accounts, you’ll need to call customer service to make the arrangements. Call 1-888-826-4374 24 hours a day, seven days a week for assistance.
If you just want to close one of your Tangerine accounts but keep others open, you can log in and close it online.
After logging in:
- Go to Account Details
- Click “Edit” under Account Info
- Go to Close Account
If you’re closing a Tax Free Savings Account (TFSA) or a Retirement Savings Plan (RSP), you’ll need to call customer service.
There isn’t a fee to close the account. However, Tangerine will charge you a $45 NSF fee if you don’t have enough funds to cover one of your bill payments. That’s why it’s important to change over all your information before closing your account.
In addition, Tangerine charges a $10 inactivity fee if you don’t use the account for a year. If you go two years without any activity, the fee increases to $20 per year.
While closing a bank account is a hassle, sometimes it’s more beneficial to switch than to stick with the same financial institution for years.
Tangerine does offer no to low fees and high introductory interest rates, but you might find out it doesn’t fit all your needs.
If you’re looking to switch banks, check out these top no-fee bank accounts.