What happens when you close a bank account
Closing a bank account is straightforward: you tell the bank you want to shut it down, move any remaining money out, and the bank stops accepting transactions on that account. The process usually takes a few days to a week, though some banks finish it the same day you request it. You will not lose money in the account — that stays yours until you withdraw it or the bank transfers it per your instructions.
The bank will not charge you a fee to close an account, though some banks may charge an early closure fee if you opened the account very recently (typically within 90 days). Check your account agreement or call your bank to confirm whether this applies to you. Once closed, the account number becomes inactive and cannot receive deposits or payments.
If you have automatic payments or direct deposits set to this account, they will fail once the account closes. You need to redirect those before you close the account, or notify the people or companies sending you money that your account has changed.
Key Takeaways
- Close your account by calling your bank, visiting a branch, or using online banking — most banks offer all three methods.
- Move money out of the account first or tell the bank where to send any remaining balance before you close it.
- Stop or redirect automatic payments and direct deposits at least a week before closing, so they do not fail.
- Some banks charge a fee if you close an account within 90 days of opening it; check your account agreement.
- The bank will send you written confirmation of the closure, which you should keep for your records.
Three ways to close your account
By phone: Call the customer service number on the back of your debit card or on your bank's website. Tell them you want to close the account. They will ask for your account number and may verify your identity by asking for your Social Security number or a PIN. They will confirm the current balance and ask where you want the money sent — to another account at the same bank, a check mailed to you, or a transfer to an external account. This usually takes 10 to 15 minutes.
In person at a branch: Bring your debit card and a photo ID. Tell a teller you want to close the account. They will print out the current balance, confirm where the money should go, and process the closure on the spot. You will receive a receipt. This is the fastest method if you have a branch nearby.
Online: Some banks let you close accounts through their website or mobile app. Log in, find the account settings or "Manage Account" section, and look for a close or delete option. Not all banks offer this — if you do not see it, use phone or branch closure instead. Online closure may take a day or two to process.
What to do before you close the account
Before you call or visit, make a list of any automatic payments or recurring charges tied to this account. These include subscriptions, insurance premiums, loan payments, utility bills, gym memberships, and any other regular charges. Log into each service and update the payment method to a different account, or cancel the service if you no longer need it.
Check whether you receive direct deposits — paychecks, government benefits, tax refunds, or transfers from other people. Contact your employer's payroll department or the agency sending the money and provide them with your new account number. Do this at least one week before closing the old account to avoid a missed deposit.
Withdraw any cash you need or transfer the remaining balance to another account. If you want the bank to mail you a check for the balance, tell them during the closure process. The check usually arrives within 5 to 10 business days.
Review your recent statements to make sure no pending transactions are still processing. If you see a charge you do not recognize, dispute it before closing the account — it is easier to resolve while the account is active.
What happens to pending transactions and checks
If you have written checks that have not cleared yet, those will bounce once the account closes. Contact anyone you wrote a check to and let them know the account is closed. Offer to pay them another way — by sending a new check from a different account, transferring money electronically, or paying in cash.
Pending transactions — charges that show on your account but have not fully processed — may still go through for a few days after closure. The bank will either reject them or pay them from the account balance before sending you the remainder. Ask the bank what will happen to any pending charges when you close the account.
If you have a debit card tied to this account, it will stop working once the account closes. Destroy the card by cutting it up or shredding it. Do not throw it away intact.
Early closure fees and account agreements
Most banks do not charge to close an account, but some charge a fee if you close it within a certain window — usually 90 days to six months after opening. This is called an early closure fee or account closure fee, and it typically ranges from $25 to $100, though the amount varies by bank.
Check your account agreement or call the bank to find out whether this fee applies to you. If you are charged a fee, ask whether the bank will waive it. Some banks will if you explain your situation or if you have been a customer for a long time. If the fee is waived, ask for written confirmation.
If the bank charges the fee and will not waive it, the fee will be deducted from your account balance before the remainder is sent to you. You cannot avoid the fee by closing the account — it applies whether you close it yourself or the bank closes it for inactivity.
After the account is closed
The bank will send you written confirmation of the closure, usually within one to two weeks. Keep this letter for your records. It shows the final balance, the date the account closed, and where any remaining money was sent.
If you need to dispute a charge or resolve a problem with the account after it closes, you can still contact the bank. Closed accounts remain in the bank's system for several years, and customer service can look up the history if needed.
If you closed the account because of fraud or unauthorized charges, report it to the Federal Trade Commission at IdentityTheft.gov and to your state's attorney general. Keep copies of all correspondence with the bank.
Reasons people close bank accounts
Some people close accounts because they are switching banks and want to consolidate their money into one institution. Others close accounts they no longer use to simplify their finances. Some close accounts after fraud or unauthorized charges, or because they are unhappy with fees or customer service.
If you are closing because of fees, ask the bank whether they offer a different account type with lower or no fees. Many banks have basic checking accounts with minimal requirements. If you are closing because of fraud, the bank may open a new account for you with a fresh account number, which is safer than using the compromised account.
If you are closing because the account has been inactive for a long time, check whether the bank has already closed it. Banks sometimes close accounts that have had no activity for one to three years. If the account is already closed, the bank will tell you how to recover any remaining balance.
Frequently Asked Questions
Will closing my bank account hurt my credit score?
No. Closing a checking or savings account does not affect your credit score because these accounts are not reported to credit bureaus. Only credit accounts — credit cards, loans, and lines of credit — appear on your credit report. Closing a bank account has no impact on your creditworthiness.
What if I close my account and then receive a deposit meant for that account?
The deposit will be rejected and returned to whoever sent it. That is why it is important to update your account information with your employer, benefits agency, and anyone else sending you regular money before you close the account. If a deposit is returned, contact the sender and provide your new account number so they can resend it.
Can I reopen a bank account I closed?
Yes, you can open a new account at the same bank. However, if you closed the account because of overdrafts, fraud, or other problems, the bank may refuse to let you open a new one. Some banks use a system called ChexSystems that tracks account closures and problems; if you are flagged, other banks may also refuse to open an account for you. Ask the bank whether you are in ChexSystems before trying to open a new account elsewhere.
How long does it take to close a bank account?
If you close in person at a branch, it happens the same day. If you close by phone, the bank usually processes it within one to three business days. If you close online, it may take one to five business days. The bank will send you written confirmation once the closure is complete.
What should I do with my old debit card after I close the account?
Cut it up or shred it so it cannot be used. Do not throw it away whole. If you are worried the card was compromised, you can also contact the bank and ask them to cancel it immediately, though it will stop working once the account closes anyway.