Yes, you can change your business bank account, but the process takes planning and coordination with your current bank, your new bank, and anyone who pays or receives money from your business.

The switch itself is not complicated — you close the old account and open a new one — but the work happens before and after. You need to notify customers, vendors, payroll providers, and government agencies of your new account number. You need to make sure checks clear and automatic payments don't bounce. You need to decide whether to keep the old account open temporarily while the transition happens, or close it immediately. The timeline depends on how many people and systems depend on your current account details.

Most banks do not charge you to close a business account, though some impose a fee if you close within a certain period after opening (often 90 to 180 days). The new bank may offer a cash bonus for switching, but read the terms carefully — bonuses usually require a minimum deposit or a certain number of transactions within a set timeframe.

Key Takeaways

  • You can close your business account at any time, but you must notify anyone who sends you money or receives money from you before the account closes.
  • The safest approach is to keep your old account open for 30 to 60 days after opening the new one, so late-arriving checks and automatic payments do not bounce.
  • You must update your account number with your payroll provider, tax agencies, customers who pay by ACH or automatic transfer, and vendors who bill you automatically.
  • Closing a business account does not affect your business credit or tax record, but bounced checks or missed payments during the transition can.

What you need to do before you close the old account

Make a list of everyone who touches your account: employees (for payroll), the IRS and your state tax agency (for tax deposits and refunds), customers who pay by ACH or automatic transfer, vendors who bill you automatically, and anyone else who sends or receives money from this account. Call or email each one and ask for the process to update your account number. Some will do it immediately; others may take a week or more.

For payroll, contact your payroll provider (ADP, Gusto, Paychex, or whoever processes your checks) and give them the new account number and routing number. They will need time to update their system before the next payroll run, so do this at least one week in advance. For tax deposits, log into the IRS's Electronic Federal Tax Payment System (EFTPS) or your state's tax payment portal and update your account there. For customers and vendors, send them a formal notice with your new account number and routing number, and ask them to confirm they have updated their records.

Check your recent bank statements to see if there are any automatic payments or transfers you may have forgotten about — subscriptions, insurance premiums, loan payments, or transfers to savings accounts. Contact each provider and update the account number.

Timing: when to close the old account

The safest timeline is to open the new account first, update everyone's records over the course of one to two weeks, then wait another 30 to 60 days before closing the old account. This buffer catches checks that arrive late, automatic payments that were not updated, and ACH transfers that were scheduled before you notified the sender.

If you need to close the old account sooner, you can do so after 30 days if you have confirmed that all regular payments and transfers have been rerouted to the new account. Call your old bank and ask them to hold the account open for a specific date rather than closing it immediately. Some banks will keep an account open for 30 to 90 days after you stop using it, as long as you request it in writing.

Do not close the old account until you have received at least one full payroll cycle and one full billing cycle on the new account, to confirm that everything is working. If a check bounces or a payment fails because it went to the closed account, you may face overdraft fees, late fees, or damage to your business relationships.

How to open a new business bank account

You will need your Employer Identification Number (EIN), your business license or articles of incorporation, a government-issued ID, and proof of your business address (a utility bill or lease). Some banks also ask for your business tax return or a letter from the IRS confirming your EIN. The process usually takes one to three business days, though some banks offer same-day or next-day accounts if you apply online and meet their requirements.

Compare banks on their monthly fees, minimum balance requirements, transaction limits, and customer service availability. Some banks waive monthly fees if you maintain a certain balance or set up direct deposit. Others charge per check or per ACH transaction. For a business that writes many checks or processes many transfers, these fees add up quickly.

Notifying the IRS and state tax agencies

You do not need to file a separate form to change your business bank account. However, you must update your account information in the IRS's EFTPS system if you make federal tax deposits, and in your state's tax payment system if you make state deposits. Log into each system, find the account management or payment method section, and update your routing number and account number.

If you receive tax refunds (federal or state), update your account information so refunds go to the new account. For federal refunds, you can update this through EFTPS or by calling the IRS at 800-829-1040. For state refunds, contact your state's tax agency directly. If a refund is already in process when you change accounts, it may still go to the old account — contact the agency to confirm.

What happens to checks and pending transactions

Checks written on the old account will still clear against that account for up to six months after you close it, as long as the account has funds. However, if the account is closed and a check arrives, the bank will return it unpaid and charge you a returned-check fee (usually $25 to $35). This is why keeping the old account open for 30 to 60 days is important.

ACH transfers and automatic payments that were not updated will fail if the account is closed. The sender will receive a rejection notice and may retry the payment, which could result in multiple failed attempts and fees. To avoid this, update all automatic payments and transfers before you close the account.

If you have pending transactions on the old account when you close it, the bank will process them against the account balance before closing. Make sure you have enough funds to cover any outstanding checks or transfers.

Closing the old account

Call your old bank and ask to close the business account. They will ask if you have any outstanding checks or automatic payments, and they may ask why you are leaving. You can close over the phone, by mail, or in person at a branch. Ask the bank to confirm the closing date and to send you a final statement showing the account balance and any remaining transactions.

If there is a balance remaining, the bank will send you a check or transfer the funds to another account you specify. If there is an overdraft or unpaid fees, the bank will deduct those from the balance before sending the remainder. Keep the final statement for your records — you may need it for tax purposes or to resolve disputes about old transactions.

After the account closes, you may still receive checks or payments addressed to the old account for several months. Contact the sender and provide the new account number, or deposit the check into the new account and note the old account number on the deposit slip.

Frequently Asked Questions

Will changing my business bank account affect my credit or tax record?

No. Changing banks does not affect your business credit score or your tax record. The IRS and credit bureaus track your EIN and business name, not your bank account number. However, if checks bounce or payments fail during the transition, those failures can damage your credit and your relationships with vendors.

What if I forget to update my account number with someone?

If a payment arrives at the old account after it closes, the bank will return it unpaid. Contact the sender immediately with your new account number and ask them to resubmit the payment. If it is a tax refund or government payment, call the agency and provide your new account information so they can reissue it.

Can I keep both accounts open at the same time?

Yes. Many businesses keep the old account open for 30 to 90 days while transitioning to the new one. This protects you if a check or payment arrives late. Once you are confident all regular payments have been rerouted, you can close the old account. Some banks charge a monthly fee for inactive accounts, so ask your bank about their policy.

How long does it take to switch banks?

Opening a new account takes one to three business days. Updating all your vendors, customers, and service providers takes one to two weeks. The safest transition period is 30 to 60 days from the time you open the new account to the time you close the old one. If you are in a hurry, you can close the old account after 30 days if you have confirmed all payments have been rerouted.

Do I need to close the old account, or can I just stop using it?

You can leave it open indefinitely, but most banks charge a monthly maintenance fee for inactive accounts. Closing it formally ends the fee and removes the account from your records. If you think you might need it again later, ask your bank about their policy on reopening closed accounts — some banks will reopen an account within a certain period without requiring a new application.