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- Before closing a bank account, you need to check your account status and current transactions.
- Most national and online banks will require you to call or go in person to close an account first.
- You can reopen an account if it's inactive, but once you close an account it can't be undone.
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's branches, you've decided to streamline your banking to only one account, or you simply find a bank account that's a better fit for you.
Whatever the case may be, you don't have to stay tied to your account forever. Closing a bank account won't negatively impact you in the same way that closing a credit card may affect your credit score. You just need to be mindful of how the process works so you can have a more seamless process.
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What to do before you close a bank account
Find out if the account is in good standing
Banks won't let you close an account if you have a negative balance, so you'll need to assess your current account's standing. Negative balances will require you to put some money in so that you have at least a $0 account balance to close the account.
The standing of your account may affect whether you'll have to pay fees. If you've overdrawn from your account and have a negative balance, you'll be charged an overdraft fee. New accounts that have been opened for a short time — usually less than six months — may be charged an early account closure fee around $25 or $30.
Create a plan for the money left in your account
If your account has a positive balance or is frequently used, you'll want to set up an alternative course of action. Your goal should be to leave your bank account with a $0 account balance to make the closing process more efficient.
For your current account balance, you may decide to open a new account, transfer your money to another account, or take it all out in cash.
If you use your account frequently to pay bills or accept paychecks, you'll also want to redirect these transactions to another account early on.
How to close a bank account
Close it online, over the phone, or in person
With most banks, you won't be able to initiate the closing process online.
Most national brick-and-mortar banks like Bank of America, Wells Fargo, or Chase will require you to go to a branch location or call over the phone first. Online banks like Ally and Capital One will also want you to call.
A few banks will let you initiate the process online. TD Bank lets you close an account through online banking or email if your account has a $0 balance. Axos Bank also allows customers to initiate closure by online banking.
Calling a bank will be enough to close an account in most cases, but some institutions may require you to fill out an additional form or write up a quick note.For instance, if you have a joint bank account, you may have to fill out a form or write a note that states both individuals want to close the account.
If you aren't sure what the process is like for your financial institution, try searching through a bank's FAQ section first, then call your bank if you still can't find the information.
Verify that your account is closed
A bank will verify once your account is closed. This will be done either over the phone, through email, or through online banking. Otherwise, it may still be open, and you might still be charged for common bank fees.
If your account requires you to pay a monthly bank maintenance fee on the same day each month, try to close the account at least a couple of days before you'd be charged the fee. This leaves you time in case it takes time to close the account and make the necessary adjustments, so you won't have to pay another fee.
Closing a Bank Account FAQS
Is there a fee for closing a bank account?
There's only a fee if you're closing a bank account right after you've opened it. Generally, you'll have to keep your account open for 60 to 180 days to avoid an early account closure fee.
How long does it take to close a bank account?
Closing a bank account will take a few minutes if it's in good standing. If you're account has unpaid overdraft fees, it may take extra time because you'll have to pay these fees before you close an account.
Can you reopen a closed bank account?
Once you've taken steps to close your bank account, you can't reopen it if you have a change of heart. You'll have to reopen a new one with the bank and start again.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She edits and writes bank reviews, banking guides, and banking and savings articles for the Personal Finance Insider team. She is also a Certified Educator in Personal Finance (CEPF).Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:
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