You can close a checking account at any time, for any reason
Yes. There is no rule stopping you from closing a checking account whenever you want. You do not need permission from your bank, and you do not need a reason. You can close it today, tomorrow, or next month. The bank cannot force you to keep the account open.
What matters is the order you do things in and what you do with the money inside. Close the account before you move your direct deposits or automatic payments, and you will create problems for yourself. Close it after, and the process takes about five minutes.
The main thing banks care about is that you settle what you owe them — pay any overdraft fees or negative balance — before the account closes. After that, the money is yours to move or withdraw.
Key Takeaways
- You can close a checking account at any time without the bank's permission, and there is no penalty for doing so.
- Before you close, move your direct deposits and automatic bill payments to a new account so money does not land in a closed account.
- Pay off any overdraft fees or negative balance before closing, or the bank will deduct it from your final withdrawal.
- Most banks let you close an account in person, by phone, or online, and the process takes a few minutes to a few business days.
- After closing, keep your final statement and any cancelled checks for your records, especially if you are closing because of fraud or error.
What to do before you close the account
The week before you close, contact your employer or benefits provider and give them your new account number. This includes your paycheck, tax refunds, Social Security, unemployment payments, and any other direct deposits. If you close the account and money lands in it after closure, the bank will return the deposit and your employer will have to resend it — a process that takes weeks.
Go through your bills and subscriptions and update the account number for anything that auto-pays: utilities, insurance, phone, streaming services, loan payments, rent. Log into each one or call the company. Do not rely on memory. Write down what you changed and when, so you can catch a missed payment if something goes wrong.
Withdraw or transfer any money you want to keep. Some banks charge a fee to close an account with a balance, though most do not. Check your account for any pending transactions — a check you wrote that has not cleared yet, a charge that is processing. Wait for those to post before you close, or they may bounce.
Pay off any overdraft balance or fees. If your account is negative, the bank will deduct what you owe from your final withdrawal. If you do not have enough to cover it, the bank may send the debt to a collection agency or report it to ChexSystems, a banking history database that other banks check before opening new accounts.
How to close the account
Call your bank's customer service line, visit a branch in person, or log into your online banking and look for a "close account" or "account settings" option. The method depends on your bank. Some banks only close accounts by phone or in person. Others let you do it online.
When you close, the bank will ask you how you want your remaining balance sent to you: a check mailed to your address, a transfer to another bank account, or a withdrawal in cash at a branch. A check takes five to ten business days. A transfer to another account at the same bank is instant. A transfer to a different bank takes one to three business days.
Ask the bank for a final statement and confirmation that the account is closed. Keep this for your records. If you wrote checks on this account, ask whether any are still outstanding. The bank can tell you which ones have not cleared yet.
What happens after you close
Once the account is closed, you cannot deposit money into it or withdraw from it. Any deposits that arrive after closure will be returned to the sender. This is why moving your direct deposits first is critical.
The bank will keep a record of the closed account for a set period — usually five to seven years — in case a check clears late or a dispute comes up. You can still request copies of old statements during this time.
If you close the account because of fraud or unauthorized charges, ask the bank for a written statement of what happened. Keep this with your final statement. If the fraud is recent, the bank may still be investigating, and you may need proof of closure for your records or for reporting to the Federal Trade Commission.
Reasons to close and what to watch for
People close accounts for different reasons: moving to a bank with better rates, consolidating multiple accounts, leaving a bank after poor service, or closing an account that was opened fraudulently. None of these reasons will stop you from closing.
If you are closing because of fraud or identity theft, close the account but also place a fraud alert on your credit report and consider a credit freeze. Contact the Federal Trade Commission at IdentityTheft.gov to report it. Do not assume closing the account alone protects you.
If you are closing because of overdraft fees or a negative balance, check whether the bank will negotiate. Some banks will waive one or two overdraft fees if you ask, especially if you have been a customer for years. It costs nothing to ask before you close.
What to do if something goes wrong after closing
If a check you thought had cleared suddenly bounces after you close the account, contact the bank immediately. The check will be returned to whoever tried to cash it, and they may charge you a returned-check fee. The bank may also charge you a fee for the bounced check. Ask the bank to reverse both if the check was old and should have cleared before closure.
If a direct deposit or automatic payment lands in the closed account, contact your employer or the company that sent the payment. They will resend it to your new account, but this takes five to ten business days. In the meantime, contact your bank and ask them to return the deposit to the sender immediately rather than holding it.
If the bank charges you a fee for closing the account, ask them to reverse it. Most banks do not charge closure fees, but some do if you close within a certain period after opening. If the fee is on your final statement, call and dispute it before the account fully closes.
Closing a joint account
If the account is joint — both you and another person own it — you usually cannot close it alone. Both owners have to agree and sign off on closure. Contact the bank to find out whether one person can close it unilaterally or whether both signatures are required.
If you and the other person disagree about closing, the bank will not close the account. You have two options: reach an agreement with the other person, or open a new account and move your portion of the money out. The other person keeps the account open with their portion.
Frequently Asked Questions
Will closing a checking account hurt my credit score?
No. Closing a checking account does not appear on your credit report and does not affect your credit score. Credit scores are based on credit history — loans, credit cards, and payment history — not on bank accounts. Closing a checking account is invisible to credit bureaus.
What if I have outstanding checks that have not cleared yet?
Ask the bank which checks are still outstanding before you close. Do not close the account until they clear, or they may bounce. If you must close before they clear, ask the bank to keep the account open long enough for the checks to post, or transfer enough money back into the account to cover them.
Can the bank refuse to close my account?
No. A bank cannot refuse to close your account. However, they can require you to settle any negative balance or overdraft fees first. If you owe money, pay it before asking to close, and the bank will close it immediately.
How long does it take to close a checking account?
If you close in person or by phone, the account closes immediately. If you close online, it may take one to three business days. Your final balance will be sent to you within five to ten business days if you request a check, or within one to three business days if you request a transfer to another account.
Do I need to close the account in the same way I opened it?
No. You can open an account online and close it by phone, or open it in person and close it online. The method does not have to match. Use whatever method is easiest for you.