Saying goodbye to a bank account isn’t as easy as unsubscribing from email newsletters, but with the right planning, you can ensure that the account doesn’t remain an unwanted guest for months.
To close a bank account, call your bank, visit a branch, or do it online, depending on your preference and what the bank allows. But there are other steps that need to be taken first. Here is a guide on how to close a checking or savings account.
1. Choose your new bank account
Create a new account to manage your daily finances. There’s no such thing as a one-size-fits-all checking or savings account, so look for accounts that offer the services and features you want to use, such as:
- No monthly fee: Look for a free account or one that makes it easy to waive fees, such as by meeting a low minimum balance or account activity requirement.
- Easy access to funds: Perhaps you want an extensive network of ATMs or branches, the ability to quickly transfer money online, or both.
- benefits: This may include a competitive interest rate, sign-up bonus, ATM fee reimbursement, or other benefits.
- Better customer service than your previous bank: This aspect is often personal, so consider reaching out to a potential bank’s support team to see how helpful it can be.
In addition to account features, there are also several types of financial institutions to choose from: banks, credit unions, and non-financial institutions. Credit unions are the non-profit equivalent of banks, and non-financial institutions are companies that partner with banks to offer federally insured checking or savings accounts.
2. Open it
Collect your identity and other personal information and submit a request on the website or at the branch of the new banking institution. You will typically fund the new account either by linking an existing account to transfer funds or by check Or cash at a bank branch, if applicable.
Remember that you can have more than one checking or savings account. In fact, having multiple savings accounts can be a strategy for to save money.
3. List of recurring deposits and withdrawals to your old account
Review recent bank statements or your transaction history to include direct deposits, bill payments, subscriptions, automatic transfers, and other regular deposits or withdrawals. If you have annual subscriptions, see transactions for the last 12 months.
4. Transfer your funds and automatic transactions to your new account
Update your bank account information for any services you pay for, which can range from your electric company to Netflix. If you receive direct deposits, ask your employer to use your new checking account. Migrating payments, transfers, and deposits to the new account can take weeks or months, so take it easy.
5. Close your old account and make sure it is closed
As mentioned above, contact your bank using whatever method works best for you: call, visit a branch, or use an online method such as live chat or messaging. You may also need to fill out a form. When you talk to someone, you may feel pressure to stay because the bank doesn’t want to lose customers. To avoid catching a cold, remember to write down what you are going to say beforehand.
When the account is closed, ask for written confirmation and check your bank’s policy on reopening accounts. If you forget to cancel automatic bill payments, for example, the bank can reopen the account even if it results in a negative balance and overdraft fees. Stay tuned for any communication from this bank regarding any unexpected activity.
What do you know about closing a bank account
Can you close a bank account remotely?
It depends. Banking institutions have different policies, so check with yours. Some let you send a message or chat with customer service online, while others require you to call to close an account.
Can the bank close your account without your permission?
Yes, but this only happens if your account has a negative balance due due to an overdraft or if you suspect fraud.