How To Close A Bank Account: Top 5 Tips

It's important that your money is working hard for you. If you find that your bank is not treating you right, you might be considering an account closure. This article will walk you through all the steps on how to close a bank account to make sure that you don't lose any of your money. Follow this simple guide to make getting rid of your old bank account and moving to a new bank account as seamless as possible.

Closing a bank account may seem easy but there are a few steps you'll want to take to make sure everything is set up properly. There may be some slight differences between closing just one checking account or savings account, but this article primarily focuses on closing your entire bank account as a whole.

In order to close your bank account, you’ll need to get in contact with your current bank account provider and make sure you transfer any of the remaining balance. Each bank is different, so make sure you know the correct steps to take when it’s time to close an account.

Find And Open A New Account

The first step when you want to close your current bank account is to look for a new bank account provider that is better suited for you. You'll want to thoroughly research the different options including promotions and incentives to find bank that is best for you.

Transfer Scheduled Direct Deposits And Recurring Payments

This might be one of the most important steps in closing a bank account. Whether it’s deposits from an employer or recurring payments for your car, utilities or loan payments, you will need to have all of these transferred to the new bank account. One easy way to do all of this is to go online to each account you have with deposits and recurring payments and switch them yourself. That way you are taking control and not depending on your old bank account to do anything for you.

Take Your Hard-Earned Cash And Close Your Account

After making sure that your direct deposits are all squared away, you will want to transfer the money that you have in your current account into your new account. You may need to wait until all of your outstanding transactions have been completed before transferring all of your money. It can take a few days to transfer everything over, but it usually is instantaneous to actually close your bank account.

You should close your account the same day you transfer all the cash due to avoid any overdraft or miscellaneous extra fees or the account balance being too low. If you're wondering how much it costs to close a bank account, you'll be glad to know that a majority of banks don’t charge anything. Depending on the bank, it may be possible to close your account online, but most will have you call them or go into a branch.

Keep Documents And Confirmations Handy

Once you've closed your bank account you should also get a written and dated confirmation that it’s been closed. That way there isn't any confusion or discrepancy if anything comes up after you close the account. Remember where you keep the confirmation and any other important documents just in case anything goes wrong or pops up in the future.

Make Sure All Your Bank Ducks Are In A Row

Once everything is closed on the old bank account, make sure all of your money is transferred over properly to the new account and everything is matching up correctly. You'll want to pay extra attention to the first of any recurring transactions that you have with your new account. That way if the payment or deposits don't process automatically you can be proactive in fixing the problem. When your old bank account is closed, also get rid of any checkbooks, debit cards, etc. pertaining to it.

There are a variety of different reasons for closing a bank account bank account. These reasons may differ from reader to reader.

When Should You Close A Bank Account?

Here are a times when when you should close a bank account:

• Moving to a new city or different state where your old bank does not have a presence
• Opening up a new joint account with a new spouse or partner
• Separating or getting a divorce and needing to close a joint bank account
• Poor customer service with current bank

There may be other situations where you might want to close a bank account, but these are a few of the most common.

Why Should You Close A Bank Account?

Similar to the previous section, here are a few reasons why you might want to close a bank account:

• You'll get better perks with a new bank
• Your current bank is charging new fees
• It won’t affect your credit score
• You want to consolidate your accounts into one

There are plenty of reasons to close a bank account — you don't even need to have a reason. It’s fine if the reason is “just because.”

If you're looking to close a bank account, first you'll want to stop any recurring deposits or payments from your old account. Then, transfer all of your money to your new bank account. Finally, contact your old bank to officially close your account. In the first month or two of having a new bank account, pay extra attention to make sure all of your recurring transactions process smoothly.

As a next step, you can research the best online bank options to consider when opening a new account. Remember, there might not be a right or wrong reason as to why you'd want to close your existing bank account; it could just be that you want to switch things up, and that is completely normal.