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How to close a bank account: A step-by-step guide

Taking the right steps when closing a bank account ensures a smooth experience.

Ivana Pino
·Senior Writer
Updated 7 min read

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.

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.

Read more: Here’s what to do if your bank account application was denied

If you’re confident you’ve tied up all of your loose ends, you can open a new checking account in four simple steps:

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.

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).

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.

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.

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.

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.

Read more: Should unmarried couples have joint bank accounts?

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.

Read more: What happens to a bank account when somebody dies?

Many people worry that closing a bank account will damage their credit. But closing an account typically has no impact on your credit score.

However, there is an exception: If you close the account and have an unpaid negative balance, the bank will report the unpaid fees to the credit bureaus, and they could send your account to collections. If that happens, you could see a significant decrease in your credit score.

To avoid any impact on your credit, verify with the bank — ideally, in writing — that there is no negative balance at the time of the checking account’s closing.

Closing a bank account is usually free as long as you don’t have any unpaid account fees or aren’t bound to some sort of account bonus rules. However, every bank has its own rules around account closures. Be sure to read your account terms and conditions to figure out whether or not there is a fee involved to close your account.

Yes, many financial institutions offer the option within your online banking platform or mobile app to close your account. If not, you may still be able to close your account by contacting a customer service representative via phone or live chat.