How to Close a Bank Account – Guide
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 branches, you’ve decided to simplify your bank to just one account, or you’ve simply found a bank account that’s best for you. Whatever the case, you don’t have to be tied to your account forever. Closing a bank account will not negatively affect you in the same way that closing a credit card can affect your credit score. You just need to be aware of how the process works so you can have a more continuous process.
What to do before closing your account
Find out if the account is in good standing
Banks do not allow you to close an account if you have a negative balance, so you will need to assess the status of your checking account. Negative balances will require you to put in some money so that you have at least a $0 balance to close the account. Your account status may affect your fee payment. If you have overdrawn on your account and have a negative balance, you will be charged an overdraft fee. New accounts that have been opened for a short period of time – usually less than six months – may be charged a closing fee of around $25 or $30.
Create a plan for the money remaining in your account
If your account has a positive balance or is used frequently, you may want to define up an alternative course of action. Your goal should be to leave your bank account with a $0 balance to make the closing process more efficient. For your current account balance, you can decide to open up a new account, transfer your money to another account or withdraw everything in cash. If you frequently use your account to pay bills or accept paychecks, you’ll also want to redirect those transactions to another account early on.
How to close a bank account
You may be able to close it online at phone, or in person With most banks, you will not be able to start the closing process online. Most national physical banks, such as Bank of America, Wells Fargo or Chase, will require you to go to a branch or call the phone first.
Online Banks
The best online banks offer a variety of bank accounts, loans and investment products. They are also FDIC insured and provide strong customer service. Some banks allow you to start the process online. TD Bank allows you to close an account through online banking or email if your account has a balance of $0. Axos Bank also allows customers to initiate closing through online banking services. In most cases, calling a bank will be enough to close an account, but some institutions may require you to complete an additional form or write up a quick note. For example, if you have a joint account, you may have to fill out a form or write a note stating that both people want to close the account. If you’re not sure what the process is like for your financial institution, try searching a bank’s frequently asked questions first and then calling your bank if you still can’t find the information.
Make sure your account is closed
A bank will verify once your account is closed. This will be done throughout the phone, by email or by online banking. Otherwise it may still be open and any fees associated with the account may still be charged. If your account requires you to pay a service fee on the same day of each month, try to close the account at least a few days before the fee is charged. This leaves you with time if it takes time to close the account and make the necessary adjustments, so you don’t have to pay another fee.
Can you reopen a closed bank account?
Unfortunately, once you’ve taken steps to close your bank account, you won’t be able to reopen it if you change from heart. You will have to reopen a new one with the bank and start over. If your account has been closed by a bank, you can reactivate it. In this situation, you want to contact your bank about possible courses of action.
Final note
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