If your bank isn’t meeting your needs, it might be time to find a new one. While this task might seem overwhelming, getting a few things in order beforehand will smooth out the transition and make your life less stressful.
There are loads of reasons to move to a new bank – lower fees, higher interest rates, and even better online services. The Canadian Banking Association found that only 12% of Canadians consider in-person services crucial to their banking needs.
With more people moving their money to online banks, that number could decline even more in the coming years.
If you’ve decided to make a banking change, here’s how to close your CIBC account:
- Find a new bank.
- Change your payment and deposit information.
- Transfer the funds.
- Close your CIBC account
If you’re unhappy with your current bank, it’s tempting to close out the account on the spot and take all your money. But try to restrain yourself because if you do that, you’ll be stuck when you need to pay your bills or deposit paycheques.
Instead, take the time to research new banks and all their options. Check out both big-name banks and digital ones and list the pros and cons of each. If you’re struggling to find a new financial institution, check out my recommendations for the best banks in Canada.
Once you narrow down your choices and find the best fit, open that account before you close your current one. That way, you won’t incur any lapses when you’re paying bills or depositing money.
Your next task is going through your transaction history and finding the automatic payments or preauthorized debits attached to your account. You’ll need to update these transactions with your new banking information. Otherwise, you could get hit with Non-Sufficient Funds fees (NSF) when your payments bounce.
It’s easy to remember regular monthly payments and change those, but also consider your once or twice-a-year bills.
Are your home and car insurance deducted straight from your account every few months? Don’t forget to change those. In addition, make sure you give your employer your new banking information, so you don’t miss paycheques.
Now is also the perfect time to update any changes if you contribute to an investment account. Also, don’t forget your income tax information. You can make the changes through your CRA account.
Once the first two steps are in place, it’s time to move your money. Transfer the funds to your new account but make sure you don’t have any outstanding cheques hanging out, or you’ll get hit with NSF fees.
4. Close Your CIBC Bank Account
If you want to close your account and transfer the balance to another CIBC account, you can do it either at a local branch or call the telephone banking center at 1-800-465-2422.
If you’re closing your account and switching banks, you’ll need to do it in person at a local branch.
Make sure you understand the fees associated with closing an account ahead of time to avoid paying more than you have to. To start, CIBC will charge $20 if you close an account within 90 days of opening it.
In addition, the bank will charge $19.50 if you ask them to transfer money to another bank at the time of closing. It’s best to transfer the money ahead of time before you go in to close out the account.
If you haven’t consistently maintained your account’s minimum balance, CIBC will charge $45. There are also inactivity fees for dormant accounts.
- $20 fee for a 2-4 year dormant account.
- $30 fee for a 5-8 year dormant account.
- $40 fee for a 9-year dormant account.
- 10-year-old dormant accounts are transferred to the bank of Canada.
If you’re unhappy with your current bank, then there’s no reason to stay. There are plenty of financial institutions available that will fit your needs.
It’s easy enough to close your CIBC account, but you will need to have another account in place before you do.
Don’t forget to update all your payment and deposit information so you don’t incur any unwanted fees. Finally, make sure you’re aware of the fees CIBC charges to close your account.
If you’re looking to get away from the big banks, check out my recommendations for the best online banks.