Step 2: Redirect direct deposits and recurring payments
You may have recurring payments drawing money out of your old checking account, or you might get direct deposits there. If so, updating the banking details for those transactions can help prevent costly issues like overdraft fees and delayed access to your paycheck.
Reviewing your bank account’s transaction history and statements for the previous 30 days can help you identify payments that require updating.
Step 3: Monitor and wait for pending transactions to clear
It can take time for charges to clear in your checking account. If your old checking account has any pending transactions, you may want to wait until those go through before moving money out. That may help you avoid bounced charges or a negative balance, and the fees that may come along with those.
It can also be helpful to ask your bank if there are bank account closure fees you need to pay.
Step 4: Withdraw remaining funds
Once your old checking account is free of pending charges, you can withdraw any remaining balance from that account or transfer it to your new one.
Step 5: Set up transfers on your new account
After withdrawing your remaining funds and depositing them in your new account, you may also consider setting up automatic bill pay with your new checking account. However, it’s important to have enough funds in your new account before automatic transfers are set up so that you can avoid overdraft fees.
Additionally, if you receive your paychecks through direct deposit, you may also want to provide your employer with your new account’s routing and account information.
Step 6: Officially request account closure
You’ll need to follow your bank's processes to close your checking account. You may need to submit a written request, call customer service or visit a local branch. The type of checking account, such as a joint or individual account, may also shape further steps needed to close it.
If you aren't sure how to proceed, you can contact your bank for more information.
How long does it take to close a checking account?
In general, it may only take a few minutes to officially close your checking account, though the timing can vary. Issues like pending transactions, unpaid fees and negative account balances can delay the process.
Are there any downsides to closing a checking account?
There may be some potential drawbacks to closing your checking account. For example, some banks may charge an early closure fee if your account is relatively new.
Although closing a checking account won't directly impact your credit score, there may be indirect effects on your credit. Your bank may send negative balances to collections, for instance, which can affect your credit. Closing your account with a balance due can also show up on reports about your bank account history, which can make it difficult to open a new bank account in the future.
Should I close my checking account?
Closing your checking account may make sense, but it depends on your situation. If you’re looking to avoid your current checking account’s monthly fee, closing your account may be a suitable decision. It can also help if you want to consolidate your bank accounts to make it easier to manage your finances.
The following questions may help you understand if closing your account makes sense:
- Are there closure fees?
- Do I owe any other fees on that account?
- Can I find the account features I want without switching banks?
Alternative options, such as switching to a no-fee checking account at your bank, may also meet your needs. If you want to access some of the bank’s other accounts or loans in the future, you may choose to keep that account open.
Disclosure: This article is for general educational purposes. It is not intended to provide financial. It also is not intended to describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
