Closing a bank account is straightforward if you do it in the right order
Closing a bank account takes about 15 minutes if you've already moved your money out. The real work is the step before: making sure no automatic payments, direct deposits, or checks are still tied to that account. Banks will close it once the balance is zero, but if you leave money behind or forget about a pending charge, you'll either get hit with overdraft fees or the account will stay open. The process itself — whether you do it online, by phone, or in person — depends on your bank, but the sequence is always the same.
The most common mistake is closing an account without redirecting direct deposits or automatic payments first. A paycheck or utility bill will hit the old account weeks later, triggering overdraft fees or forcing the bank to reopen it. The second mistake is forgetting about a check you wrote that hasn't cleared yet. That check will bounce after closure, and you'll owe the recipient a returned-check fee on top of the original amount.
Key Takeaways
- Move all your money out first, then redirect direct deposits and automatic payments to your new account before you ask the bank to close it.
- Check for pending checks, recurring charges, and subscriptions linked to the account — these can trigger overdraft fees or keep the account open.
- Most banks let you close accounts online or by phone, but some require you to visit a branch in person.
- Ask for written confirmation of the closure and keep it for your records in case the account reappears on your credit report or you're charged a fee later.
- If you have a joint account, both account holders usually have to agree to close it, and funds may be split according to your bank's rules.
Step 1: Move your money to your new account
Transfer your entire balance to the account you plan to keep. If you have a small amount left (under $25), some banks will let you close the account anyway, but others will hold it or charge a fee. The safest move is to bring the balance to zero.
Use a transfer between your own accounts — most banks process these when ready or within one business day. If you're switching banks entirely, you can do an external transfer, which usually takes three to five business days. Do not write a check to yourself; that creates a floating transaction that can confuse the closure process.
Step 2: Redirect direct deposits and automatic payments
Log into any account that sends money to your old account — your employer's payroll system, Social Security, a pension provider — and update the routing and account number. This is the single most common reason people's old accounts stay open: a direct deposit keeps hitting it months after they thought they'd closed it.
For automatic payments (utilities, insurance, subscriptions, loan payments), log into each one and change the account number. Do not rely on the bank to forward these; they won't. If you miss even one, the payment will fail, you'll get a late fee from the biller, and your old account may reopen or rack up overdraft charges. Spend 20 minutes now going through your email for receipts and confirmation emails from recurring charges.
Step 3: Check for pending checks and outstanding transactions
Ask yourself: did I write any checks from this account in the last month that haven't cleared yet? If yes, wait until they do before closing. A check that arrives after you've closed the account will bounce, and you'll owe the recipient a returned-check fee on top of whatever they were owed.
Log into your online banking and look at the last 30 days of transactions. If you see anything pending or anything you don't recognize, investigate it before you close. Some subscriptions or recurring charges hide under names you won't when ready recognize — look for small monthly charges from companies you've forgotten about.
Step 4: Request the closure through your bank
Most banks let you close an account online through their website or mobile app. Look for a settings or account management section. Some banks require you to call a customer service number; a few still require you to visit a branch in person. Check your bank's website or call the number on the back of your debit card to find out which method they use.
When you close the account, the bank will ask you how you want any remaining balance handled — usually a check mailed to you or a transfer to another account. If the balance is already zero, this step is automatic. Some banks process closures when ready; others take one to three business days.
Step 5: Get written confirmation and monitor your credit report
Ask the bank for written confirmation of the closure — either a confirmation number, an email receipt, or a letter. Save this. If the account reappears on your credit report weeks later, or if you're charged a fee you don't recognize, you'll need proof that you closed it.
Check your credit report 30 to 60 days after closure to make sure the account shows as closed by you (not by the bank due to inactivity, which can look different to lenders). You can get a free credit report once a year from each of the three major bureaus at annualcreditreport.com. If the account doesn't show as closed, contact the bureau and provide your closure confirmation.
Closing a joint account: both owners usually have to agree
If the account is held jointly with another person, most banks require both of you to request the closure together, either in person or by phone. Some banks will let one person close it unilaterally, but this varies. Call your bank and ask what their policy is before you proceed.
If there's money in the account, find out how the bank will split it. Some banks divide it equally; others require both owners to sign off on how it's divided. If you and the other owner disagree, the bank may freeze the account until you resolve it in writing or through a court order.
What happens if you close an account with an outstanding balance
If you owe the bank money — because of overdraft fees, a negative balance, or an unpaid loan — the bank will not close the account until you pay it. They may also send the debt to a collection agency or report it to the credit bureaus. Pay any outstanding balance before you request closure.
If you close an account and then realize later that you owed money, the bank can still pursue you for it. The closure does not erase the debt. If you're unsure whether you owe anything, ask the bank for a final statement before you close.
Frequently Asked Questions
Can I close a bank account online, or do I have to go to a branch?
Most large banks let you close accounts online or by phone. Smaller banks and credit unions sometimes require an in-person visit. Check your bank's website or call customer service to find out. If you must visit a branch, bring a photo ID and any account statements you have.
What if I close my account and then a check I forgot about tries to clear?
The check will bounce, and the person or business you wrote it to will be charged a returned-check fee. You'll also owe them the amount of the check. This is why it's important to wait until you're sure no outstanding checks are still in circulation — typically 30 days after your last check.
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 close the account with an unpaid balance or overdraft fees, the bank may report the debt, which can lower your score.
How long does it take for a bank account to fully close?
Most banks close accounts within one to three business days of your request. However, it can take 30 to 60 days for the closure to show up on your credit report and for any pending transactions to fully clear. Keep your confirmation number until you see the account listed as closed on your credit report.
What should I do if my old account keeps getting charged fees after I closed it?
Contact the bank when ready and provide your closure confirmation. Ask them to reverse any fees charged after the closure date. If they refuse, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. Keep records of all fees and your closure confirmation.