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You’re probably reading this because you want to close a Tangerine bank account. In this post, you’ll learn how to do just that and what to expect.
I’ll start off by telling you what you need to do exactly, then round up with some of the steps to take before you close your tangerine account or any other bank account in Canada.
How To Close Your Tangerine Bank Account
Simply place a call to Tangerine at 1-888-826-4374 (toll-free) to start the account closing process.
Alternatively, you can login to your account and initiate a chat with a customer service representative.
Your available funds, if any, will be transferred to your linked bank account once the account is closed.
Tangerine customer service is open 24 hours a day all through the week. The service is available in both English and French.
For more information about closing accounts at Tangerine, check the account legal terms.
Why Close a Tangerine Account?
Like many other online banks, Tangerine lets you bank and do most of your transactions without worrying about fees.
Its introductory savings interest rate is probably the highest you’ll get from any bank – currently 2.10% for the first 5 months. And you can receive a cash bonus of $150.
But outside of the periods when it has promotional interest rates, the regular savings rate (0.10%) is much lower than what you would get from other online banks like EQ Bank, Motive Financial and so on.
If your reason for opening a Tangerine Bank account was to earn more on your savings or emergency fund, then it may no longer meet your needs.
You may be better off opening a savings account at another bank with regular savings rate that is competitive. For example, EQ Bank and Motive Financial both have current rates of 1.25%.
EQ Bank has zero fees on everyday banking transactions. Bill payments, Interac transfers and many other transactions can be done with no fees. Motive Financial on the other hand has fees on debit transactions like Interac.
Another reason to close a bank account is to keep things simple and consolidate your banking needs with a few banks.
- Best Personal Finance Products and Services For Canadians
- EQ Bank Review: Best Savings Account in Canada
Steps to Closing a Tangerine account
What are some of the things you need to do before closing a tangerine bank account, or any other account in Canada for that matter?
1. Look for another bank
The first step is to decide if you need a new bank account at another financial institution.
You won’t always need to open a new bank account, though – for example, you’re closing the Tangerine account to consolidate all your banking needs with just one bank.
But if you conclude that you need another bank account, you should compare the features and benefits of different banks and decide on the one that best meets your needs.
If you’re a newcomer to Canada, you can check here for the best bank accounts for newcomers.
2. Change the details for your Direct Deposits and Debits
Next, update your banking details to avoid missing any payments or deposits. The last thing you want is to be on the hook for the $45 NSF fee at Tangerine.
Here are some of the direct deposits and pre-authorized debits you may need to update:
- Pay cheque
- Bill payments (phone, utilities, credit cards etc)
- Government payments (tax refunds, GST/HST refund, Child Benefits and so on)
Spend some time to review your bank statements for the past few months to be sure you’re not forgetting any payment.
Stop writing new cheques from the account. For the ones you’ve given out, monthly rent for example, either replace them or wait till they’ve all been paid before closing the account.
3. Move Your Money
You can transfer your funds out of the account yourself or let the bank handle it after the account has been closed.
If you do it yourself, try to move it out on the first day of the month. That way, there won’t be any accrued interest to deal with.
4. Close Your Tangerine Account
With the 3 steps above complete, it is time to contact your bank to close your bank account.
Some of the steps above may not be relevant to you depending on what you were using the account for.
For example, if you were simply using your tangerine account to stash your emergency fund, you probably won’t have a lot of pre-authorized transfers, bill payments, paycheque, or government benefits setup in the account.
If you do, then you probably need to go through all the steps before you place that call to Tangerine.
Fees for Closing Tangerine Bank Account
There are no fees for closing a Tangerine bank account. However, there’s a Non-sufficient Fund (NSF) fee of $45.
You may have to pay the fee during the account closing process if you missed any payments. To avoid it, make sure your change the details of all your pre-authorized debits.
Also, stop issuing new cheques and retrieve old ones if possible.
Tangerine Inactivity Fee
There’s also a Tangerine inactivity fee of $10 in the first year, with the fees gradually increasing afterwards.
- 1 year inactivity fee: $10
- 2-9 Year Dormancy fee: $20
- 10 Year Dormancy Fee: $40
But you should not have to deal with the extra fees if you’ve closed your tangerine bank account properly.
Closing Tangerine Account FAQ
You can’t close your Tangerine Bank account from within profile. You have to place a call to 1-888-826-4374 (available 24/7).
No, there are no fees to close your Tangerine bank account. However make sure you’ve cancelled all pre authorized debits to avoid the non-sufficient fund (NSF) fees of $45.
I hope you find this post useful. If you’ve recently closed a Tangerine bank account, please share your experience in the comments below.
For information on how to close an account at other banks in Canada, check this post below: