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- Before closing a bank account, you need to ensure there are no pending transactions and remove your funds.
- Most national and online banks will require you to call or visit a branch to close an account.
- Remember to reroute direct deposit and bill pay to a new account.
The first bank account you open doesn't have to be a permanent fixture in your life. Maybe you're moving somewhere that doesn't have any of your current bank's branches, you've decided to streamline your banking, or you simply found a checking account that's a better fit for you.
Whatever the case may be, you don't have to stay tied to your account forever. Closing a bank account won't negatively impact you in the same way that closing a credit card may affect your credit score. Still, there are specific steps to follow to ensure a smooth account closure.
Preparing to close your account
Ensure all checks have cleared
If you've written or deposited a check, be sure it has cleared before initiating a bank account closure. If you don't, you run the risk of your check bouncing or not receiving funds you are rightly owed.
Find out if the account is in good standing
Banks won't let you close an account if you have a negative balance, so you'll need to assess your current account's standing. Negative balances will require you to put some money in so that you have at least a $0 account balance to close the account.
The standing of your account may affect whether you'll have to pay fees. If you've overdrawn from your account and have a negative balance, you'll be charged an overdraft fee. New accounts that have been opened for a short time — usually less than six months — may be charged an early account closure fee of around $25 or $30.
Create a plan for the money left in your account
Your goal should be to leave your bank account with a $0 account balance to make the closing process more efficient. If there's money left in the account, the bank has the right to use those funds to cover any overdrafts or overdraft fees and will send you a check for any remaining balance.
If you want more immediate access to your funds, transfer them out of the account ahead of time. You'll also want to redirect future bill pay and direct deposit to another account.
Steps to close a bank account
Contact your bank
With most banks, you won't be able to initiate the closing process online.
Most national brick-and-mortar banks will require you to go to a branch location or call over the phone first. Online banks will also want you to call.
A few banks will let you initiate the process online. TD Bank lets you close an account through online banking or email if your account has a $0 balance. Axos Bank also allows customers to initiate closure online.
Calling a bank will be enough to close an account in most cases, but some institutions may require you to fill out an additional form or write a quick note. For instance, if you have a joint bank account, you may have to fill out a form or write a note that states both individuals want to close the account.
If you aren't sure what the process is like for your financial institution, try searching through a bank's FAQ section first, then call your bank if you still can't find the information.
Withdraw your balance
If your bank requires a $0 balance to close your account, you'll need to withdraw or transfer the funds to a different account. You can typically do this by visiting an ATM if the amount is under the withdrawal limit. Your bank may also offer the option to receive a check for your balance.
Obtain written confirmation
A bank will verify once your account is closed. This will be done either over the phone, through email, or through online banking.
If your account requires you to pay a monthly bank maintenance fee on the same day each month, try to close the account at least a couple of days before you are charged the fee. This gives you a buffer in case it takes several days to close the account.
Tips for a smooth account closure
Avoid closing accounts with pending transactions
If you have pending transactions, such as a bill payment or a paycheck, they may not be able to go through once you begin the process of closing your account.
Consider the timing of closing around bill payments
Unless you have already moved the funds from your soon-to-be-closed bank account to a new account and set up online bill pay, avoid initiating an account closure within a few days of important payment due dates, such as rent or loan payments.
Bank account closure FAQs
It depends on the bank or credit union. Some require you to call or make an in-person visit to initiate an account closure. If you have a joint bank account, documentation is needed to close a bank account.
Closing a bank account will not have a negative effect on your credit score if the account is in good standing — meaning any overdrafts and common bank fees are paid.
Bank policies vary. Generally, if the account is in good standing and the funds have been moved elsewhere, your account can be closed immediately. If you're account have a negative balance, you'll have to deposit funds to reach a $0 balance before you engage in steps to terminate a bank account.
You can request a check, withdraw the balance in cash, or transfer the funds to a new account. It's ideal to withdraw funds before account closures.
There's only a fee if you're closing a bank account right after you've opened it. Generally, you'll have to keep your account open for 60 to 180 days to avoid an early account closure fee.
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