The basic steps to close a bank account
To close a bank account, contact your bank directly by phone, in person, or through their website, then transfer or withdraw your remaining balance and confirm all automatic payments have been stopped. Most banks will close the account within a few business days once you've settled any outstanding balance. The exact process depends on whether you're closing a checking account, savings account, or both, and whether you have any pending transactions.
Before you call or visit, gather your account number and any recent statements. Know your current balance and review which bills or services are set to automatic withdrawal from that account — this is the step most people miss and regret. If you have direct deposit set up, you'll need to update that information with your employer or the organization sending the deposit.
Key Takeaways
- Stop all automatic payments and transfers before closing, or they may bounce and trigger overdraft fees or late payments on your bills.
- Withdraw or transfer your full balance; some banks charge fees if you close an account with a remaining balance, though this varies by bank and account type.
- Update direct deposit and any other recurring deposits with the sending organization before the account closes, or those payments will fail.
- Request written confirmation that the account is closed to protect yourself if the bank later claims it was still open.
Stopping automatic payments before you close
Automatic payments are the biggest reason people run into trouble after closing an account. If a bill payment, subscription, or transfer is scheduled to come out of that account after it closes, the payment will be rejected. This can result in late fees from the company you owe, a hit to your credit report if it's a loan or credit card payment, or service interruption if it's a utility or phone bill.
Log into your online banking and look for a section called "Transfers," "Bill Pay," or "Recurring Payments." Write down every automatic payment you see — including subscriptions, insurance premiums, loan payments, and transfers to savings accounts. Contact each company or set up the payment from a different account at least a week before you plan to close. For payments you can't move right away, consider keeping the account open for another month rather than closing it immediately.
What to do with your remaining balance
You have two options: withdraw the money in cash or transfer it to another account. If you're transferring to another bank account, you can usually do this online or by phone while you're closing the account. The transfer typically takes one to three business days. If you're withdrawing cash, do this before you officially close the account to avoid any confusion about whether the withdrawal went through.
Some banks charge a fee if you close an account with a balance remaining, though this is uncommon for standard checking and savings accounts. Money market accounts and certain savings products may have different rules. If your bank mentions a fee, ask whether you can avoid it by withdrawing the full balance first. Always confirm your balance one more time before closing — if the bank later claims money was still in the account, you want documentation that you emptied it.
Updating direct deposit and other incoming payments
If you receive a paycheck, government benefit, or other regular deposit into the account you're closing, you must update that information before the account closes. Contact your employer's payroll department, your state's benefits office, or whoever sends the deposit and provide your new account number. This usually takes a few minutes online or over the phone.
Don't assume the deposit will automatically redirect to another account you have at the same bank — it won't. The payment will fail and bounce back to the sender, which can delay your money by a week or more. If you're closing your only account at a bank, set up a new account at another bank before you close, so you have somewhere to redirect the deposit.
How to actually close the account
Once you've stopped all automatic payments, transferred or withdrawn your balance, and updated your direct deposits, you're ready to close. Call your bank's customer service number, visit a branch in person, or use their website if they offer online account closure. Have your account number ready and be prepared to answer security questions to verify your identity.
The bank may ask why you're closing — you don't have to give a detailed reason, but a simple answer like "I'm consolidating accounts" or "I'm switching banks" is fine. Some banks will try to convince you to keep the account open; you can decline. Ask the representative to confirm the closure in writing and request they email or mail you a confirmation. This protects you if the bank later claims the account was never closed or if a payment somehow comes out of it after closure.
Checking for outstanding fees or holds
Before closing, ask the bank whether there are any outstanding fees, pending transactions, or holds on the account. A hold might be in place if you recently deposited a check or if there's a dispute with a transaction. These can prevent closure and may result in fees if they're not resolved first. If there's a hold you don't recognize, ask the bank to explain it and request they remove it if it's no longer necessary.
Some banks charge a monthly maintenance fee or a fee for closing within a certain timeframe (often 90 days to a year after opening). Ask about this before you close. If you're closing a new account and a fee applies, it's usually small, but it's worth knowing so you're not surprised by a charge after closure.
What happens after you close the account
Once the account is closed, the bank will no longer accept deposits or withdrawals. Any checks you've written that haven't cleared yet will bounce. If you still have checks from that account, destroy them or write "Account Closed" on them. The bank will keep records of the closed account for a set period (usually five to seven years) in case you need to dispute a transaction or verify a payment you made.
If a payment does come out of the closed account by mistake, contact the bank immediately. They can often recover the money and return it to you. Keep your confirmation of closure handy so you can reference it if you need to dispute something later.
Frequently Asked Questions
Can I close a bank account if I have a negative balance?
No. You must pay off any overdraft or negative balance before the bank will close the account. The bank may deduct the amount owed from another account you have with them, or they may require you to pay it directly. If you don't pay, the bank may send the debt to a collection agency.
What if I have a joint account — can I close it without the other person?
Not usually. Both account holders typically must consent to closure. Contact the bank to find out their specific policy. If the other person won't agree to close it, you may be able to remove yourself from the account instead, though the account itself will remain open.
How long does it take to close a bank account?
Most banks close accounts within one to five business days after you request closure, as long as the balance is zero and there are no pending transactions. Some banks may take longer if there are outstanding checks or transfers still processing. Ask for a specific timeline when you call.
Will closing a bank account hurt my credit score?
Closing a checking or savings account does not directly affect your credit score because these accounts don't appear on your credit report. However, if you miss a payment because an automatic bill payment fails after closure, that late payment can hurt your credit. This is why stopping automatic payments first is so important.
What if the bank won't close my account?
Banks rarely refuse to close an account, but if yours does, ask why in writing and request the reason be documented. If there's a dispute or fraud investigation, the bank may temporarily freeze the account. If you believe the bank is acting unfairly, you can file a complaint with the Consumer Financial Protection Bureau or your state's banking regulator.