What you need to do before closing a current account
Closing a current account takes between five and ten business days once you start the process, but the real work happens before you call your bank. You need to redirect all incoming payments, settle any outstanding cheques, clear any overdraft balance, and cancel any direct debits or standing orders linked to that account. Only after those are done should you contact your bank to close it.
The order matters because payments can still arrive after you request closure, and your bank will either return them or hold them temporarily. If you close the account while money is still flowing in, you risk missing payments or having funds sit in limbo. Employers, government agencies, and subscription services all need the new account details before you shut the old one down.
Key Takeaways
- Stop all automatic payments by cancelling direct debits and standing orders at least two weeks before closure.
- Give your employer and any government agencies your new account details so future payments go to the right place.
- Pay off any overdraft balance and clear any cheques still in circulation before you contact your bank.
- Call your bank or visit a branch to formally request closure once everything else is settled.
- Keep records of the closure confirmation and check your old account for stray payments for at least a month after closure.
Redirect all automatic payments to your new account
Start by listing every payment that leaves your current account each month. This includes salary deposits (if you are switching banks), rent or mortgage payments, utility bills, insurance premiums, subscription services, gym memberships, and loan repayments. Write down the name of each organisation and the amount.
For payments you control — direct debits and standing orders — log into your online banking and cancel them one by one. Do not just stop them; formally cancel them so there is a record. Then contact each organisation (your landlord, utility company, insurance provider) and give them your new account number and sort code. Ask for written confirmation that they have updated your details. This step takes time but prevents payments bouncing or being rejected.
For payments coming in — salary, benefits, tax refunds — contact the payer directly. Your employer needs your new sort code and account number at least two weeks before your next payday. If you receive benefits or pension payments, contact the relevant government office (HMRC, DWP, local council) and update your details there. Do not assume they will figure it out.
Settle any overdraft and clear outstanding cheques
If your account is in overdraft, you must pay back the full amount before closure. Your bank will not close an account with a negative balance. Check your current balance online or call your bank to confirm the exact amount owed, then transfer money from your new account to cover it.
If you have written any cheques that have not yet cleared, wait until they do before closing the account. Cheques can take up to ten working days to clear after they are paid in. Ask the people you wrote cheques to if they have deposited them yet. If they have not, ask them to do so before you close the account, or wait until you see the payment leave your account. Closing an account with outstanding cheques can cause them to bounce, which damages your credit record and may result in fees.
Contact your bank to request closure
Once all payments have been redirected, overdrafts cleared, and cheques settled, contact your bank. You can do this by phone, in person at a branch, or sometimes through online banking. Have your account number and sort code ready, and be prepared to confirm your identity with security questions or a passcode.
Ask the bank representative for a closure confirmation number or reference. Write this down. Ask them to confirm the date the account will close and whether any final statements will be sent. Some banks send a final statement by post; others make it available online only. Confirm which applies to you so you know where to look for records.
If you have a mortgage, loan, or credit card linked to this account, tell your bank before you close it. They may need to update their records or move the payment arrangement to your new account. Do not assume they will do this automatically.
What happens after you request closure
Your account will remain open for several more days while the bank processes the closure. During this time, any payments that arrive will either be returned to the sender or held in a suspense account. This is why redirecting payments beforehand is crucial — if a payment arrives after closure, it may take weeks to track down and redirect to your new account.
Check your old account online for at least a month after the closure date to see if any unexpected payments arrive. If they do, contact your bank when ready and ask them to forward the money to your new account. Keep the closure confirmation number handy when you do this.
Once the account is closed, you will no longer be able to log in or access it. Your bank will retain records for a set period (usually six years) in case you need statements or proof of payment for tax or legal reasons. You can request copies of old statements by contacting your bank, though they may charge a fee.
Special situations: joint accounts and business accounts
If the account is held jointly with another person, both account holders must agree to closure. Contact your bank to find out their process — some require both of you to be present, others allow one person to request closure on behalf of both. Any balance in the account will be split according to the account terms, so clarify this with your co-holder before you start.
Business current accounts have additional requirements. You may need to provide proof that the business is closing, or that you are authorised to close the account on behalf of the business. Contact your business bank directly to understand their specific process. If the account has a business loan or credit facility attached, you will need to settle or transfer that before closure.
Frequently Asked Questions
Can I close my account if I still have money in it?
Yes. Your bank will transfer any remaining balance to your new account or issue a cheque. Confirm the method when you request closure so you know how to receive the money. Some banks transfer automatically; others require you to specify where the funds should go.
What if a payment arrives after my account closes?
The bank will return it to the sender with a reason code indicating the account is closed. The sender will then need to contact you for your new details. This is why notifying payers in advance is important. If a payment does arrive after closure, contact your bank with the closure reference number and ask them to help redirect it.
Do I need to close my account in person?
No. Most banks allow closure by phone or online. However, if your account has unusual features, a large balance, or linked products, the bank may ask you to visit a branch. Call your bank first to ask what method they accept for your specific account.
How long does it take for my account to fully close?
The process usually takes five to ten business days from the date you request closure. During this time, the account remains open to process any final transactions. After the closure date, you will not be able to access the account.
Will closing my account affect my credit score?
Closing a current account does not directly damage your credit score. However, if you close it while in overdraft or with unpaid debts, that will be recorded. Settle any balances before closure to avoid this. Your credit history with that bank will remain on file for reference purposes.