How to Close a Bank Account: Step-by-Step Guide
Closing a bank account is a straightforward process, but doing it carefully avoids problems like missed payments, returned transactions, or leftover fees. Here is a practical step-by-step approach.
Step 1: Open your new account first
Before closing your current account, open your new account and ensure it is fully set up and funded. This avoids any gap in banking access.
Step 2: Update your direct deposits and recurring payments
Update your direct deposit information with your employer and any benefits agencies. Update all recurring payments, subscriptions, and autopay accounts to use your new account. Allow sufficient time for these changes to take effect — typically one to two pay cycles for direct deposit.
Step 3: Clear all pending transactions
Make sure all outstanding checks have cleared and all pending transactions have settled. Closing an account with unprocessed transactions can result in returned items and fees.
Step 4: Withdraw or transfer your remaining balance
Transfer your remaining balance to your new account or withdraw it. Leave a small buffer initially in case any transactions are still in progress.
Step 5: Request account closure
Contact your bank by phone, in person, or through their online banking portal. Request formal closure of the account. Some banks require written or signed requests. Ask for written confirmation of the account closure.
Frequently Asked Questions
Sources
- Consumer Financial Protection Bureau (CFPB)
- Federal Deposit Insurance Corporation (FDIC)
Pro tip: Bookmark this guide and review it before opening a new bank account to ensure you understand all terms and conditions.