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

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Closing a checking account is a simple course of, however it may take an unexpectedly very long time for those who aren’t ready. Depending on a few various factors, the method can take a day, a week, and even a few months. 

In most circumstances, closing a checking account may be finalized in a single or two days. Causes of delay could possibly be depending on the quantity of funds in your account and the way rapidly you deactivate or reroute direct deposits and on-line invoice funds to a new account. 

Closing a checking account is a nice alternative to take a take a look at your finances with a recent perspective. Read beneath for extra ideas for closing your checking account.

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

If you’re transferring funds to a new account at a completely different financial institution, be certain to observe the appropriate protocol to keep away from any mishaps. Typically, transferring cash between two accounts is free, however be certain to affirm every financial institution’s insurance policies. Sometimes there may be a restrict on how a lot cash you possibly can switch at one time or what number of transfers you can also make a month, so plan accordingly.

2) Change All Recurring Payments to the New Bank Account

Switching your funds over to a completely different account can normally be accomplished simply on-line. It’s a good concept to evaluate your final six months of bills to ensure you don’t miss transferring any recurring funds. Be certain to replace or delete your saved banking info with your whole favourite web sites to make sure you don’t by accident cost the flawed account. Don’t overlook to contact your organization’s payroll crew to replace your direct deposit info, and plan prematurely in case there are any errors.

three) Confirm That All Pending Payments Have Cleared

Double test that automated transactions together with checks and digital debits are terminated earlier than transferring ahead with closing your account. Be certain you switched your direct deposit to the brand new or alternate account of your alternative. 

 

 

four) Notify Your Former Bank

Call your financial institution to inform them that you really want to formally shut the checking account. Allow loads of time on your earlier financial institution to course of the change processed.

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

Keep in thoughts that you simply would possibly want to get your closing type notarized. There are normally notaries accessible on the department areas of banks and credit score unions.

6) Destroy Old Checks and Debit Card(s)

Be certain to securely get rid of any outdated checkbooks and debit playing cards along with your earlier checking account. Not solely will this forestall any confusion, but additionally it should shield your private info.

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

This consists of dates and instances that you simply spoke to financial institution representatives. You by no means know if you would possibly want this info for future reference. Also, be certain to get affirmation of the account’s closure in writing.

 

three Common Reasons to Close a Bank Account

If you’re questioning whether or not or not it’s value it to shut a checking account, try the most typical causes individuals make this determination.

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

If you continue to have a joint account that your dad and mom helped you open if you have been a little one, it is perhaps time to shut it. You have to bodily go to the financial institution along with your dad or mum who’s the co-owner of the account. Both you and your dad or mum will full and signal an account closure type to formally terminate the checking account.

2) How to Close a Joint Bank Account 

You should go to a bodily financial institution location in-person with the co-owner of your joint account to terminate it. In the identical means that you simply closed your childhood joint account, each house owners of a joint account should agree to signal the account closure type. In the case that your account co-owner doesn’t agree along with your determination and gained’t cooperate, you would possibly want to get a lawyer concerned.

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

Sometimes the funds are robotically transferred to a beneficiary’s account, however you’ll have to shut the deceased’s checking account your self and switch it to your account of alternative. If you’re a member of the family and there isn’t a will, you have to contact the banks concerned and work with them to obtain entry to the suitable checking and saving accounts. It would possibly make extra sense to retitle the deceased’s financial institution accounts reasonably than closing the outdated ones.

 

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Can You Close a Bank Account Online?

While many bigger banks have begun to permit you to shut your accounts on-line, many others nonetheless require you go to the financial institution in individual to confirm closure. There is a likelihood you would possibly want a request in writing to shut your account, alongside along with your signature. This is to confirm the method and stop fraud. On the opposite hand, for those who don’t shut your account, you can get charged a “dormant account” price after a sure time interval.

The solely means to know in case your explicit financial institution permits on-line account closure is by contacting them straight. Usually calling and talking with a consultant is one of the best affirmation. If you suppose forward, it’s normally doable to keep away from any charges when switching over to a new financial institution. However, be conscious that some charges concerned are unavoidable. Below, we’ve outlined whether or not or not you possibly can shut your account on-line at eight of the most well-liked 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 would possibly surprise how closing a checking or financial savings account might affect your credit score rating. If you’re good about holding the appropriate amount of cash in your checking account always, you don’t want to fear about account closure affecting your credit score. Most of the time, customary account closures or funds transfers don’t assist or harm your credit score. 

However, for those who don’t have overdraft safety, your account has a unfavorable steadiness, and also you shut the account with out following up, banks, lenders, and collectors will discover. If you’re experiencing some monetary difficulties, don’t wait to handle overdrafts and the following charges. To shield your credit score, you have to resolve excellent funds straight away.

If you’re considering that it’s not value it to shut your inactive checking account, suppose once more. By not closing your account, you can get charged a “dormant account” price after a sure time interval. Whether you’re firstly of your monetary journey otherwise you’re shut to retirement, you would possibly want a refresher on how to shut a checking account.

 

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The technique of closing an account is a nice likelihood to mirror on the state of your funds via a cash audit. Maybe you’re already making progress along with your targets, otherwise you would possibly understand you want to begin budgeting and invoice monitoring as quickly as doable. With the appropriate monetary instruments like Mint’s budgeting app, you’ll have the opportunity to set your self up for long-term monetary well being and success.

Sources: Bank of America | Capital One | Chase | Citibank | TD Bank | PNC Bank | Wells Fargo | US Bank