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In some ways, it’s easier to close a bank account, such as a savings or checking account, than to open one. You can do so by walking into your local branch, calling customer service, or logging into your online account. Regardless of which option you choose, it should take only a few minutes and typically doesn’t cost anything—unless you’re closing an account you just opened.
Key Takeaways
- You usually can close a bank account by logging into institution’s website, calling customer service, or going to a local branch.
- Check that the bank account is in good standing and move or withdraw any available funds before closing it.
- Banks and financial institutions don’t charge fees for closing bank accounts unless you close it within a short time of opening it.
Why You May Need to Close a Bank Account
People often give a lot of thought to opening a new bank account, but there are specific instances when it makes sense to close one:
- The bank account charges a high monthly fee: Enjoy instant savings by closing the account that charges you every month and opening a no-fee bank account.
- Someone has stolen your identity: Depending on the severity of your case, it might be easier to close your account and open a new one if someone has gained access to your sensitive financial information.
- You want to switch banks: If you’ve found a financial institution that offers better banking products or interest rates, it might pay to close your bank account and open a new one somewhere else.
- You’re unhappy with your financial institution’s customer service: If your bank isn’t doing a good job handling your business, you can always take it elsewhere.
- You’re moving out of state and want a new local option: Although most banks and credit unions operate and partner within multiple regions, you may prefer to work with a financial institution in your area.
Before You Close Your Bank Account
Take a moment to check a few things before closing your account. First, find out whether your account is in good standing or if you owe any fees, such as late or overdraft penalties. If you do, you’ll be expected to pay them when closing the account.
You should also see if there are any pending or scheduled transactions. If you’ve written checks or initiated other payments with the account lately, make sure that they’ve cleared, as you’ll need to wait until they do before closing the account.
Lastly, check if you have funds in the bank account. You’ll need a plan for where to put the money once you withdraw it and close the account.
If you opened the account a short while ago (usually within the last 90 to 180 days), your bank may charge an early closeout fee. While these usually aren’t steep, you can avoid getting hit with the penalty by waiting until you’re past the window of time before closing your account.
If you opened the account a short while ago (usually within the last 90 to 180 days), your bank may charge an early closeout fee. While these usually aren’t steep, you can avoid getting hit with the penalty by waiting until you’re past the window of time before closing your account.
How to Close a Bank Account in 3 Easy Steps
There’s no reason to overthink closing your checking account account since it’s such a simple process. Here are the three simple steps:
- Contact your bank: You can always go into your local branch to close the account, but you may be able to log into your account online or call customer service. Tell them you want to close the account or follow the online prompts. They’ll verify your information and close the account.
- Withdraw your balance: If you have money in the account, you can transfer it to a new account or take it out. In some cases, the bank may cut you a check for the amount.
- Obtain written confirmation: Once you finish your business, ask the bank agent to give written or electronic confirmation of the account closure and keep it with your financial records.
If there’s a joint owner for the account, either person can close it.
If you don’t have funds in your account and you choose not to close it, be aware that the bank might charge you monthly fees or close it due to inactivity.
If you don’t have funds in your account and you choose not to close it, be aware that the bank might charge you monthly fees or close it due to inactivity.
After You Close Your Bank Account
Once you’ve closed your account, you can deposit your funds into a new account, such as a checking account or high-yield savings account. Some people prefer to open a new account before closing the first one so they can immediately transfer funds, but it’s up to you.
With so many things being paid for with subscriptions, it’s a good idea to go back and check each of your recurring payments (including bills). Update each account with your new bank account information so there’s no interruption of services or goods.
Don’t forget to check with your employers if you use direct deposit. Provide them with your new banking information. This way, you’ll continue to get your paychecks without any issues.
The Bottom Line
There are many compelling reasons for closing a bank account—you might be moving, find a bank with better interest rates, or want to switch for customer service reasons. Fortunately, it only takes a few minutes to close a bank account, and you can often do it from home. Just remember to update your payment information with employers or automatic subscription services so there are no interruptions with your financial payments.
