Close your account if you no longer use it, have found a better bank, or want to consolidate accounts — but do it deliberately, not by accident.
Closing a checking account is straightforward, but the timing and method matter. If you close before moving your money elsewhere, you risk checks bouncing, automatic payments failing, and direct deposits going nowhere. If you close without telling the bank, they may close it for you after months of inactivity and charge fees. The right move depends on why you want to close it and what you have coming in or going out.
The basic process takes a few days to a few weeks. You contact your bank, move your money to another account, redirect any automatic payments or direct deposits, and confirm the account is closed. Some banks let you do this online or by phone; others require you to visit a branch. The bank will send you a final statement showing any remaining balance and any fees charged at closure.
Key Takeaways
- Move all your money out before closing, and wait at least a week after redirecting direct deposits and automatic payments to make sure nothing bounces back.
- Closing an account does not hurt your credit score, but leaving an account open and unused for years may eventually trigger an involuntary closure by the bank.
- If you have outstanding checks or pending transactions, the bank will hold the account open until they clear, which can take weeks.
- Some banks charge a fee to close an account early if you opened it recently; check your account agreement or ask before you start the process.
Reasons to close a checking account
You might close an account because you switched banks and no longer need it, because you want to consolidate multiple accounts into one, or because the bank charges fees you no longer want to pay. Some people close accounts after moving to a new state where their bank has no branches. Others close because they found a bank with better rates, lower fees, or features that matter more to them.
Closing an account is also the right move if the bank has closed it for you involuntarily due to inactivity or repeated overdrafts, and you want a fresh start elsewhere. In that case, you will need to settle any outstanding balance or fees before opening a new account at another bank.
Do not close an account just because you are not using it right now if you think you might need it later. Reopening an account is possible but can be slower than keeping one open, and some banks may check your banking history before letting you open a new one.
Steps to close your account safely
First, move all your money to another account at the same bank or a different bank. This can take one to three business days if you are transferring between banks. Do not wait until the day you close to do this — move the money at least a week before you plan to close.
Second, redirect any automatic payments or direct deposits. Log into your accounts — your employer, your insurance company, your utility provider, your loan servicer — and update the bank account information. This includes paychecks, government payments like Social Security, insurance refunds, and any recurring bills you pay automatically. Missing this step is the most common reason people regret closing an account.
Third, wait at least one week after you have redirected everything, then contact your bank to close the account. You can usually do this by phone, online, or in person. The bank will confirm that the account has a zero balance and no pending transactions. If there are outstanding checks or pending deposits, they will tell you how long to wait before closing.
Fourth, ask the bank to send you a final statement and confirmation of closure. Keep this for your records. If you have a safety deposit box at the same bank, you will need to empty it and close that separately.
What happens to money still in the account
If you close an account with money still in it, the bank will send you a check for the remaining balance, usually within one to two weeks. Some banks offer to transfer the balance to another account you have at the same bank or to a linked account at another bank — ask about this option when you call to close.
If the account has a negative balance — meaning you owe the bank money — you must pay that amount before closing. The bank will not close the account until the debt is settled. This can happen if you overdrew the account and the overdraft fee was larger than any deposits that came in afterward.
If you do not claim the money after a certain period (usually three to five years, depending on your state), it becomes unclaimed property and is turned over to your state's unclaimed property program. You can still recover it, but you will need to file a claim with the state.
Fees and penalties for closing early
Most banks do not charge a fee to close a checking account, but some do if you close within a certain time frame — often 90 days to six months after opening. Check your account agreement or call your bank to ask before you close. If there is an early closure fee, it is usually between $25 and $100.
Some banks may also charge a fee if the account has a negative balance at closure. This is separate from any overdraft fees you already paid. Ask the bank to waive this fee if you have been a customer for a long time or if the negative balance was small.
Closing an account does not affect your credit score. Banks do not report account closures to credit bureaus the way they report missed payments or defaults. However, if you close an account and then try to open a new one at the same bank shortly after, they may decline based on your banking history.
What to do if the bank closes your account for you
Banks can close accounts involuntarily for inactivity (usually no deposits or withdrawals for 12 months or more), repeated overdrafts, or suspected fraud. If this happens, the bank will send you a notice in the mail, usually 30 days before closure. The notice will explain the reason and tell you what to do with any remaining balance.
If you still have money in the account when it closes, the bank will send you a check. If you have a negative balance, you owe that amount. Some banks will pursue collection if you do not pay, which can affect your ability to open a new account elsewhere.
If your account was closed due to inactivity or overdrafts, you can open a new account at another bank without much trouble. If it was closed due to suspected fraud or other serious issues, you may find it harder to open accounts at other banks — some banks check ChexSystems, a banking history database, before approving new accounts.
Keeping your account open but inactive
If you think you might need the account later, you can keep it open without using it. Most banks allow this, though some charge a monthly fee for inactive accounts. Check your account agreement to see if there is an inactivity fee.
To keep an account from being closed involuntarily, make at least one deposit or withdrawal every 12 months. This can be as small as a $1 transfer from another account. Some banks are more lenient and allow longer periods of inactivity before closure.
If you want to keep the account but do not want to pay a monthly fee, ask the bank if they offer a no-fee savings account or money market account instead. You can keep a small balance there and use it as a backup account without the cost.
Frequently Asked Questions
Will closing my checking account hurt my credit?
No. Closing a checking account does not appear on your credit report and does not affect your credit score. Credit bureaus only track credit accounts like credit cards, loans, and lines of credit, not deposit accounts.
What if I close my account and then a check I wrote bounces?
If a check clears after you close the account, the bank will still honor it if there is enough money in the account at the time it is presented. If the account is already closed, the check will bounce and you will be responsible for any fees the recipient charges. This is why you should wait at least a week after closing to make sure all outstanding checks have cleared.
Can I reopen an account I closed?
Yes, but it depends on the bank and how long ago you closed it. Some banks let you reopen within a certain time frame (usually one to two years) without a new application. Others treat it as a new account and may run a credit check or review your banking history. Call your bank to ask.
What if I close my account and my employer's paycheck bounces?
This should not happen if you redirect your direct deposit before closing. Your employer's system will reject the old account number and send the paycheck back to your employer, who will then deposit it to your new account once you provide the updated information. To avoid this, update your direct deposit at least two weeks before closing the account.
Do I need to close the account in person?
Most banks let you close by phone or online, but some require an in-person visit. Call your bank to ask what method they offer. If you must visit in person, bring your ID and any account statements you have.