A Guide on How to Close Scotiabank Account

Whether you are moving to a new state, want a bank with better interest rates, or are opening a joint account, you must first know how to close a Scotiabank account. Closing a bank account is not complicated, but you must qualify for all the requirements. 

Before closing your Scotiabank account, open an account with another financial institution. You should switch your automatic payments to the new account and transfer your cash. Next, check if you qualify for account cancellation, you can go ahead and follow the process to close your account down.

Although some banks allow users to close their accounts online, others require you to visit the nearest branch. In some cases, closing some accounts can be more complicated, like a deceased person’s account. If your account was inactive, you must reactivate it and apply for closure. 

Steps on How to Close a Scotiabank Account

Scotiabank is one of the top five banks in Canada. It offers customers checking, credit lines, mortgages, credit cards, and savings accounts. 

You cannot close a Scotiabank account online. The bank requires you to visit a branch for a straightforward process. You can also send a letter to the bank notifying them about the closure if you are abroad. 

If your Scotiabank account is older than 90 days, you will close it for free. However, closing accounts that have not operated for more than 90 days costs$20. If you are closing your Scotiabank account due to high bank fees, you can open a no-fee checking account at Tangerine Bank, a subsidiary of Scotia. 

However, some people want a complete change of banking institutions and opt to transfer the funds to another financial institution. Scotiabank charges a $20 fee to transfer your balance to another bank. You will also pay an inactivity fee if your account has been dormant before closing it. 

Things to Do Before Closing Your Scotiabank Account

Although closing a bank account is straightforward and fast, don’t be quick to do it without a plan. Now that you know how to close an account at Scotiabank, follow these tips before applying for a closure. 

1. Open A New Bank Account

Closing your Scotiabank account before opening a new account can inconvenience you. But remember, you still need an account to transfer your direct deposits and make payments. 

Before choosing your next banking institution, research their services, minimum requirements, interest rates on savings and loans, and account offerings. Then, depending on your convenience, you can choose a traditional or online bank. 

2. Update Your Scheduled Payments and Deposits

Your clients or employer will continue crediting your old bank account if you don’t inform them about the changes. You should also update your car payment, mortgage, credit card payments, and utility payment information. Ensure you also notify your insurance company about the transfer. 

Failure to update this payment information could have the service provider thinking that you defaulted on the payments, scarring your credit score. They might be terminated if you had streaming services like Netflix or YouTube on your old account. 

3. Transfer the Funds

If you had funds left in your Scotiabank account, you should transfer them to the new bank before closing your account. You can withdraw the money or instruct the bank to deposit it to the new financial institution. 

However, you won’t need to close your Scotiabank credit cards and lines of credit because these are separate from the checking account. You can also keep your loans and investment accounts open. 

Transferring your funds to another bank from a USD account can cost you currency exchange fees if you convert them to CAD. In this case, you can exchange your money at Knightsbridge FX. We offer more favorable currency exchange rates than banks and other financial institutions, making the exchange process easier.

While transferring your funds, you should also download a bank statement. These come in handy when you want to apply for a loan, and you might use them for other purposes. 

4. Inform the Bank

The next step is contacting Scotiabank to inform them about the account closure. Remember, you cannot close your account online, so you must visit the nearest branch. 

Some banks allow their customers to close their accounts online, but they get a call from the bank’s customer service for further clarifications. If you are outside Canada, you can send a letter to Scotiabank to inform them about the account closure. 

Check if your bank requires you to fill out an account closure request form or submit a written letter. All in all, ensure you follow your financial institution’s account closure procedure for a successful process. 

5. Get A Written Confirmation

Once the bank confirms that everything about your account is in order, you will get a confirmation of the closure. The proof is written, and you can use it as evidence if any issues about the account closure arise. 

How to Close Other Types of Bank Accounts

Besides the checking and savings account, you can close other bank accounts. However, these requirements also depend on your banking institution, so ensure you check out the steps. 

1. Joint Account

Joint accounts are shared with other individuals to save, pay bills, or deposit paychecks. When opening the account, the account holders submit their signatures. Closing a joint account also requires the account holders to submit their signatures. 

If you cancel the account online, ensure all the parties send an account closure request to the bank. This also depends on if the banking institution allows online account closures. 

2. Inactive Account

Most banks only close active bank accounts, so you must reactivate an inactive bank account. You can reactivate through the mobile banking app or visit your nearest branch. 

3. A Deceased Person’s Account

A deceased person’s bank account might be hard to close, but you can seek advice from legal personnel. The closure depends on the state law and if the deceased had a written will or a listed beneficiary. It will also depend on how the person structured their finances. 

4. A Child’s Account

If you want to close your child’s account because they are mature now, consult with your bank first. Some banks automatically convert children’s accounts to regular accounts when they attain the state’s legal age. 

However, if your child has reached legal age but still wants to close the account, they can follow the same process of closing standard accounts. 

5. Overdrawn Account

Your bank will require you to get your account to a zero balance before closing it. This could delay the closure process, so check your account’s status before submitting the request. 

Final Words

Knowing how to close a Scotiabank account is essential and makes the closure process easier. Scotiabank does not allow online account closure, so you must visit a branch or write a letter if you are outside Canada. Closing the account is free if it has been in operation 90 days after opening it, but it will cost you a $20 fee if it is less than 90 days old.