How to close a bank account
Closing a bank account is straightforward if you do it in the right order. Move your money out first, settle any outstanding checks or automatic payments, then contact your bank to close the account. Most banks let you close an account online, by phone, or in person. The whole process usually takes a few days to a week, though some banks may hold funds briefly if you have pending transactions.
The key is not to rush. If you close an account while checks are still clearing or bills are still being paid from it, those transactions can bounce or fail. That creates overdraft fees, late payments on your bills, and a mess to untangle. Taking an extra week to move everything over first saves you from all of that.
Key Takeaways
- Move all your money to another account before you close, and wait at least a week to make sure no pending transactions are still processing.
- Check for automatic bill payments, direct deposits, and outstanding checks linked to the account you are closing.
- Contact your bank by phone, online, or in person to request closure, and ask for written confirmation once it is complete.
- Some banks charge a fee if you close an account within a certain period (often 90 to 180 days of opening), so check your account agreement first.
- Keep records of the closure confirmation and monitor your credit report to make sure the account shows as closed by the customer, not by the bank.
Gather information about what is tied to the account
Before you close anything, spend 10 minutes finding out what is actually using this account. Log into your account online and look at the last 30 days of transactions. Write down any recurring charges — subscriptions, gym memberships, insurance payments, loan payments. These are the ones that will fail if the account closes while they are still set up to pull from it.
Check your employer's payroll system or contact your HR department to see if your direct deposit goes to this account. If it does, you will need to update it to your new account before you close the old one, or your paycheck will bounce back to your employer. The same goes for any government benefits, tax refunds, or other regular deposits.
Look through your checkbook or online records for any checks you wrote that might not have cleared yet. Large checks or ones written to individuals (rather than businesses) can take weeks to clear. If you close the account before they clear, they will bounce and you will owe overdraft fees plus the recipient will have a bounced check.
Move your money and update automatic payments
Transfer your entire balance to your new account. If you are moving to a different bank, you can do this with an external transfer (most banks call this "send money" or "transfer to another bank"). If you are moving to another account at the same bank, you can usually transfer it when ready online.
Once the money is moved, go through each automatic payment you found and update it to pull from your new account instead. Log into each service — your insurance company, utility company, subscription service, loan servicer — and change the bank account on file. This takes time but it is the only way to make sure nothing bounces.
If you have direct deposit set up, update that next. Log into your payroll system or contact your HR or payroll department with your new account number and routing number. Ask them to confirm the change in writing, or check your next pay stub to make sure the deposit went to the right place.
Wait at least 7 to 10 days after moving your money and updating payments. This gives any pending transactions time to clear. Check your old account online to make sure the balance is zero and no new charges have posted.
Request closure from your bank
Once you have confirmed the account is empty and all payments have been moved, contact your bank to close the account. You have three options: call the customer service number on the back of your card, visit a branch in person, or use the bank's website or mobile app if they offer online closure.
When you contact them, have your account number ready. Tell them you want to close the account. The bank may ask why you are closing it — this is optional to answer, but some banks use the feedback. They will confirm that the account balance is zero and that there are no pending transactions. If there are, they will tell you to wait until they clear.
Ask the bank representative for a confirmation number or reference number for the closure request. Write it down. Also ask whether the bank will send you written confirmation by mail or email, and how long it will take for the account to fully close (usually 5 to 10 business days).
Check for early closure fees
Some banks charge a fee if you close an account within a certain time frame after opening it. This is usually 90 to 180 days, though it varies by bank and account type. The fee is typically $25 to $50.
Before you close the account, check your account agreement or call the bank and ask directly: "Is there a fee for closing this account?" If there is a fee and you are within the window, the bank will tell you the amount. You can decide whether to pay it or wait until the window closes. If you do pay it, ask the bank to deduct it from your account balance before they close it, so you do not have to send them money later.
Confirm closure and monitor your credit
After you request closure, the bank will process it over the next 5 to 10 business days. During this time, do not use the account. Do not write checks from it, do not set up new automatic payments, and do not try to make deposits.
Once the bank confirms the account is closed, keep that confirmation email or letter. You may need it later if there is a dispute about the account or if you need to prove you closed it.
Check your credit report 30 to 60 days after closure to make sure the account shows as "closed by customer" rather than "closed by bank" or "closed due to inactivity." You can get a free credit report from each of the three major credit bureaus (Equifax, Experian, TransUnion) once per year at annualcreditreport.com. If the account shows as closed by the bank instead of by you, contact the bank and ask them to correct it with the credit bureaus.
What to do if you have an outstanding balance
If your account is overdrawn or has a negative balance, the bank will not close it until you pay the balance. Transfer money from another account to bring the balance to zero, or go to a branch and deposit cash. Once the balance is positive and you have moved any remaining funds out, you can request closure.
If the account has been closed by the bank due to inactivity or non-payment, you may still owe the bank money. Contact the bank and ask what balance is outstanding. Pay it in full, then request that they close the account formally. Ask for written confirmation that the debt has been paid and the account is closed.
Frequently Asked Questions
Can I close a bank account online?
Many banks let you close an account through their website or mobile app, but not all do. Log into your account and look for a "close account" or "account settings" option. If you do not see one, call the bank or visit a branch. Some banks require you to close accounts by phone or in person.
What happens to checks I wrote before closing the account?
Checks can take weeks to clear, even after you close the account. If a check clears after closure, it will bounce and you will owe an overdraft fee. Wait at least two weeks after your last check before closing, or contact the recipients and ask them to deposit the checks before you close.
Will closing a bank account hurt my credit score?
Closing a checking or savings account does not directly affect your credit score because banks do not report these accounts to credit bureaus. However, if the account is closed by the bank due to non-payment or fraud, that can show up on your credit report and hurt your score.
Do I need to close the account in person?
No. Most banks let you close an account by phone or online. You only need to visit a branch if the bank requires it, or if you want to withdraw cash from the account before closing it. Call the bank first to ask what methods they offer.
What if the bank will not close my account?
Banks rarely refuse to close an account, but they may delay if there are pending transactions or an outstanding balance. Settle any balance owed, wait for pending transactions to clear, and try again. If the bank still refuses, ask to speak to a manager and request a written explanation of why they will not close it.