Whether you’re moving out of town, worried about your bank’s future, or just found a better option, you may want to close your bank account.
If so, there are a few important steps you should follow. Here’s how to close a bank account and overcome any potential hurdles.
How to close a bank account: General guidelines
Before you close a bank account, it’s important to have a new one up and running so you can start using it for your regular banking needs once your previous account is closed. So, before taking steps to close an account, be sure to open a new savings account or checking account right away.
Look for an account that offers a competitive interest rate on your balance, charges few, if any, bank fees, and maybe even offers a sign-up bonus. You can often open a new bank account online in just minutes.
Additionally, before closing your account, you’ll need to review your account agreement to find out if there are any fees or restrictions (you can usually find this agreement within your online banking account). Keep in mind that some financial institutions charge an early closure fee if you close an account within a specific period of time. For example, a bank may charge you $10 for closing an account within 90 days of the account’s opening date.
If you opened the account to qualify for a bonus offer, closing it may cause you to forfeit the cash bonus. With some banks, you must keep the account open for a specific period before you’re eligible for a bonus offer. If this is the case, it would make sense to wait until that period is up to close your account.
Finally, if you have a negative unpaid balance — perhaps due to overdrafts or unpaid fees — that information may be reported to a company like ChexSystems, which can affect your ability to open a new account. So take the necessary steps to get your bank account in good standing before closing it.
How to close a checking account
If you’re confident you’ve tied up all of your loose ends, you can close a checking account in four simple steps:
1. Ensure you have sufficient funds
Make sure you have enough money in the account to settle any unpaid balances or pending transactions. For example, you may need to cover the account’s monthly fees or an autopay transaction that’s in progress. If you close the account with insufficient cash, the negative balance could be reported to the bank reporting agencies.
2. Notify direct deposit and automatic payment providers
Reach out to your employer’s payroll or human resources department to notify them of the account’s closure and provide your new checking account and routing numbers so they can update your direct deposit details. Otherwise, there may be delays in receiving your paycheck.
Similarly, update your bills and recurring payments with your new checking account information so you don’t miss a payment (and potentially damage your credit).
3. Close the account
Now that you’re ready to close the account, there are three ways you can do it:
- Visit a branch: If your bank operates brick-and-mortar branches, you can visit a branch during its normal business hours. Explain to the teller that you’d like to close the account, and provide a copy of your ID. The teller will be able to complete the process on the spot.
- Online or over the phone: Some banks and credit unions allow you to close your account online or by calling their customer support departments. You’ll have to provide information about your account, and the bank representative will need to ask questions about your name and address to verify your identity before they can close the account.
- Written request: Finally, you can mail in a written request to close the account. Some banks have online forms that you can download and fill out, and they will provide instructions on where to send the closure request through the mail. You typically have to provide your full name, account number, and address, as well as verify that you have settled unpaid balances.
If the account has cash in it at the time of closure, you can transfer it to a new account or opt to receive it as a check or cash to deposit later.
4. Follow up on account closure
In most cases, the bank will close your account the same day you request its closure. However, if there are transactions in process, there can be delays.
A few days after requesting the closure, it’s a good idea to follow up with the bank or credit union to ensure that the account is completely closed and that you don’t owe any money. If you encounter any issues, contact the bank’s customer support department in person or over the phone immediately.
How to close a savings account
To close a savings account, you’ll need to follow the same steps we just outlined. However, depending on your savings account balance, you may need to jump through a few extra hoops.
Your bank may ask you for a notarized letter stating that you want to close your account. Or you may need to provide additional forms of identity verification when transferring those funds to a different account to ensure that it is, in fact, you who is trying to close your account and move your funds.
All of this will depend on your specific bank and account rules. So check in with your bank to determine what is necessary to close your savings account.
How to close a joint bank account
A joint bank account is co-owned by two or more individuals who all have equal authority to make deposits, write checks, withdraw money, and more.
In many cases, you’ll need the sign-off of all account holders to close the account. Some banks may require both parties to be present. In other cases, you may need to provide a signed affidavit from the other party that releases their ownership of the account and gives permission for you to close it.
Note that you may also have the option to remove yourself from a joint account without actually closing it. All account owners will need to authorize the change in ownership, and in some cases, you may all need to be physically present at the bank to do so.
How to close a bank account for someone who died
Most banks require a copy of the account holder’s death certificate, as well as any other identifiable information, such as a Social Security number or a government-issued ID (sometimes for you, sometimes for the deceased, and sometimes for the executor handling the affairs of the person who died). Then, depending on the estate plan, the funds can go to a few different places:
- If it was a joint account and the other account holder is still alive, the money will go to them.
- If it was a payable-on-death account with a named beneficiary, those funds will be disbursed to them.
- If the deceased had a will or another plan for the account, the bank may also need copies of those documents.
Contact the bank about the next steps as soon as possible so that you know what you need to do.
No. Standard checking and savings accounts are not reported to major credit bureaus (Equifax, Experian, TransUnion) and do not impact your credit score. However, if you close an account with a negative balance or unpaid overdraft fees, the bank may transfer the debt to a collections agency or report it to consumer reporting agencies like ChexSystems. This can make it difficult to open new bank accounts in the future.
It depends on your financial institution. Many online-only banks and select traditional banks allow you to submit a closure request through their mobile app, online portal, or via customer service call. However, many traditional brick-and-mortar banks still require you to visit a local branch in person or mail in a notarized account closure form to verify your identity.
Yes, in certain circumstances. While closing a standard, long-standing account is usually free, many banks charge an early account closure fee (typically $10–$50) if you close the account within a specific window—often within 90 to 180 days of opening. Additionally, closing an account early may cause you to forfeit any cash sign-up bonuses you previously earned.
Before closing, you can transfer your remaining balance to your new bank account electronically. If you request account closure while funds are still present, the bank will either: Issue a paper check mailed to your address on file.
Provide cash or a cashier’s check if you close the account in person at a branch.
Wire or transfer the remaining balance to an external account specified on your closure form.
Yes, in most cases. Financial institutions generally require authorization from all co-owners listed on a joint account to shut it down completely. Some banks require both parties to be physically present at a branch, while others accept a signed, notarized affidavit from the absent owner giving permission to close the account.
Manoj Sharma is a Senior Writer on the banking team at Tax Assistant. He provides information on budgeting, bank accounts, the banking industry, and other related topics. Using original data and methodologies, he helps you identify the best financial institutions, accounts, and products tailored to your needs. Manoj holds a degree in Journalism and Political Science from Syracuse University. All articles are strictly reviewed and fact-checked by our panel of expert Chartered Accountants, including CA Devendra Saini, CA Nikhil Khunteta, and CA Ankit Goyal
