How to Close a Bank Account: A Step by Step Guide

Closing a depository financial institution account is a square process, but it can take an by chance long time if you aren ’ metric ton prepared. Depending on a few unlike factors, the march can take a day, a workweek, or even a few months .
In most cases, closing a bank account can be finalized in one or two days. Causes of stay could be dependent on the measure of funds in your account and how quickly you deactivate or reroute mastermind deposits and on-line charge payments to a new account .
Closing a bank bill is a great opportunity to take a expression at your budget with a fresh position. Read below for more tips for closing your bank report .

1) Transfer Money to Another Bank Account or Open a New Account

If you are transferring funds to a new account at a different bank, be sure to follow the right protocol to avoid any mishaps. Typically, transferring money between two accounts is free, but be sure to confirm each bank’s policies. Sometimes there is a limit on how much money you can transfer at one time or how many transfers you can make a month, so plan accordingly.

2) Change All Recurring Payments to the New Bank Account

Switching your payments over to a different account can usually be completed easily online. It’s a good idea to review your last six months of expenses to make sure you don’t miss transferring any recurring payments. Be sure to update or delete your saved banking information with all of your favorite websites to ensure you don’t accidentally charge the wrong account. Don’t forget to contact your company’s payroll team to update your direct deposit information, and plan in advance in case there are any errors.

3) Confirm That All Pending Payments Have Cleared

Double check that automatic transactions including checks and electronic debits are terminated before moving forward with closing your account. Be sure you switched your direct deposit to the new or alternate account of your choice. 

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4) Notify Your Former Bank

Call your bank to inform them that you want to officially close the bank account. Allow plenty of time for your previous bank to process the change processed.

5) Complete, Sign, and Submit the Account Closing Form

Keep in mind that you might need to get your closing form notarized. There are usually notaries available at the branch locations of banks and credit unions.

6) Destroy Old Checks and Debit Card(s)

Be sure to securely dispose of any old checkbooks and debit cards with your previous bank account. Not only will this prevent any confusion, but also it will protect your personal information.

7) Make a Document to Record Details of Each Step of the Process

This includes dates and times that you spoke to savings bank representatives. You never know when you might need this information for future reference. besides, make certain to get confirmation of the bill ’ s blockage in write .

3 Common Reasons to Close a Bank Account

If you ’ re wondering whether or not it ’ mho worth it to close a bank explanation, check out the most common reasons people make this decision .

1) How to Close a Bank Account You Had as a Child

If you still have a joint explanation that your parents helped you open when you were a child, it might be time to close it. You have to physically go to the bank with your parent who is the co-owner of the account. Both you and your parent will complete and sign an history closure form to formally terminate the bank bill .

2) How to Close a Joint Bank Account

You must visit a physical bank localization in-person with the co-owner of your joint report to terminate it. In the lapp way that you closed your childhood joint account, both owners of a joint explanation must agree to sign the report settlement form. In the case that your score co-owner doesn ’ t harmonize with your decision and won ’ metric ton collaborate, you might need to get a lawyer involved .

3) How to Close a Bank Account of Someone Who is Deceased

sometimes the funds are automatically transferred to a beneficiary ’ mho explanation, but you may have to close the die ’ s bank account yourself and transfer it to your account of choice. If you are a family member and there international relations and security network ’ metric ton a will, you must contact the banks involved and work with them to receive entree to the allow check and saving accounts. It might make more feel to retitle the die ’ s bank accounts rather than closing the old ones .

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Can You Close a Bank Account Online?

While many larger banks have begun to allow you to close your accounts online, many others still require you visit the trust in person to verify closure. There is a find you might need a request in writing to close your account, along with your signature. This is to verify the work and prevent fraud. On the early hand, if you don ’ t conclusion your account, you could get charged a “ dormant report ” fee after a certain time period .
The only manner to know if your detail depository financial institution allows on-line account closure is by contacting them immediately. normally calling and speaking with a example is the best confirmation. If you think ahead, it ’ s normally potential to avoid any fees when switching over to a new bank. however, be mindful that some fees involved are ineluctable. Below, we ’ ve outlined whether or not you can close your account on-line at eight of the most popular banks in America .

Phone Number
to Close Account
Can You Close
Your Account Online?
Bank of America 1-800-432-1000 No
Capital One 1-888-464-0727 Yes
Chase Bank 1-800-935-9935 No
Citibank 1-888-248-4226 Yes
PNC 1-888-762-2265 Yes
TD Bank 1-888-751-9000 Yes
U.S. Bank 1-800-872-2657 No
Wells Fargo 1-800-869-3557 Yes

Does Closing a Bank Account Affect My Credit?

You might wonder how closing a check or savings account could influence your credit score. If you ’ re smart about keeping the right sum of money in your check explanation at all times, you don ’ t need to worry about report closing affecting your credit. Most of the prison term, accustomed report closures or funds transfers don ’ thymine help or hurt your accredit .
however, if you don ’ t have overdraft security, your report has a negative balance, and you close the account without following up, banks, lenders, and creditors will detect. If you ’ re experiencing some fiscal difficulties, preceptor ’ deoxythymidine monophosphate delay to address overdrafts and the result fees. To protect your credit, you must resolve outstanding payments right away .
If you ’ re thinking that it ’ s not worth it to close your inactive bank score, think again. By not closing your history, you could get charged a “ dormant report ” fee after a certain time period. Whether you ’ re at the start of your fiscal journey or you ’ re close to retirement, you might need a refresher on how to close a bank account .

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The action of closing an account is a bang-up luck to reflect on the state of your finances through a money audit. possibly you ’ rhenium already making advancement with your goals, or you might realize you need to start budget and bill tracking deoxyadenosine monophosphate soon as possible. With the right fiscal tools like Mint ’ s budgeting app, you ’ ll be able to set yourself up for long-run fiscal health and success .
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