You might close a bank account for various reasons, such as switching banks or consolidating finances. By managing your account and understanding the necessary steps, you could close your account permanently, but it may involve some challenges. Here are the steps involved with closing a bank account.
Reasons to close a bank account
You might choose to close a bank account for a variety of reasons, such as:
- Switching banks: You may find another financial institution that offers banking features you want, like broader ATM or branch access or more useful money management tools.
- Unwanted fees: High account fees can chip away at your balance. Moving to an account with lower or no fees can help you keep more of your money.
- Poor customer service: If your bank’s customer service hasn’t met your expectations, you might consider exploring options that provide better support and faster issue resolution.
Steps to close your bank account
These are usually the steps to take when closing your bank account.
Open your new account
If you’re switching banks, open your new account before starting the process of closing your existing one.
Ensure all pending transactions are completed
Before closing your bank account, ensure all payments, deposits and transfers have been processed. This prevents issues such as returned payments or missed deposits.
Review your account activity for the past 30 days to catch pending transactions like automatic payments, outstanding checks or recurring deposits.
Double-check for upcoming transactions that might not have been processed, such as rent, utilities or subscriptions. Resolving these before closing the account may help you avoid issues later.
If you’re canceling a checking account, be sure to cancel any savings or subaccounts connected to it.
Update deposits and automatic payments
Once your new account is set up, notify your employer or other sources of income of your new banking details. Switch automatic bill payments to your new account to prevent missed payments.
Withdraw your money or transfer it to a new account
Once all transactions are settled, transfer the remaining funds to your new account. Use your current bank’s mobile app or website and look for the transfer option in the menu. Transferring money typically requires the routing number and new bank account number.
After you’ve confirmed the account details, follow the prompts to make the transfer and wait for the notification that it has been completed. Transferring money between bank accounts can take from 1 to 5 business days.
