Professional Ways Of Closing A Bank Account
Closing a bank account can be quite complicated, especially if you are doing it online. To help people who want to close their bank accounts correctly, we have prepared this guide.
Whether it’s a checking or savings account, closing a bank account is quick and easy. All of them offer online options, but some may require you to speak with a representative on the phone.
Just like a new pair of shoes, your relationships with your banks can further improve with time.
But sometimes we need to walk away from our high heels—or in this case, bank accounts—without burning any bridges in the process.
Closing a bank account is not complicated, but there are specific actions everyone should take so the account is closed correctly and all of your money is accounted for prior to closure.
Reasons For Closing A Bank Account
There are many reasons why a person must seek to close a bank account.
Although you don’t necessarily need a reason before closing a bank account, I believe these could be one of the common reasons to move on and say goodbye to your current account:
10 Reasons For Closing A Bank Account
- To avoid expensive fees
- To gain better features and services
- Opening a joint account
- Consolidating your banking
- Switching from a child account to an adult account
- Moving to a new city or state
- To get better interest rates
- Switching to an online bank
- To qualify for a bank-offered bonus
- To escape poor customer service
How To Close A Bank Account
Follow these steps when closing a bank account:
1. Open your new bank account. This will make sure you have a place to move money to and make payments from.
2. Transfer money to your new bank account. Try to close the account the same day you do this because some banks charge fees if your account balance is too low.
3. Switch all recurring payments to the new bank account.
4. Confirm that all pending payments have cleared, including checks and electronic debits.
5. Switch your direct deposit to the new account.
6. Tell your old bank that you want to close the bank account.
7. Fill out and sign the account closing form. If you need to get it notarized, a notary should be available at your bank or credit union’s branch location.
8. Document everything. Make sure to get confirmation of the account’s closure in writing.
It takes time to close a bank account, and you will likely have some questions along the way. Just be sure to handle everything professionally.
And don’t forget cash – if you withdraw all the money from your old bank account, having some cash on hand can come in handy until your new card arrives.
FAQs On How To Close A Bank Account
Closing a bank account won’t directly affect your credit. It could, however, cause you difficulties and affect your credit score if it’s been closed with a negative balance.
The bank will check your account to ensure it is in good standing and that you’ve resolved any outstanding issues before it marks the account as closed.
If there are any remaining funds in the account, you should be able to request a transfer to your new account or receive a check by mail.
Is there a fee to close a bank account? Normally, no. The main exception is if you close an account shortly after opening it.
Some banks and credit unions charge what’s called an early account closure fee that kicks in if you close an account within a time frame such as 90 or 180 days.
To close the account, call your bank, visit the bank in person, or write a letter to their offices.
Your bank will have you sign an account closing form to make it official. If you don’t withdraw the cash first, then your bank will send you a check when the account has closed.
Frequently, banks will notice a faulty account number or closed account, and direct deposits will be returned to the sender or declined.
Yes, many banks allow you to close a bank account online, provided your account is in good standing and has a zero balance.
Aaron Stark is a financial advisor who helps people save for their future and make sound financial decisions. He’s passionate about helping people achieve their financial goals and believes that everyone should have the opportunity to retire with dignity.