Close it if you're paying monthly fees and not using it
A checking account that sits empty costs you money every month if your bank charges a maintenance fee. If you're not depositing paychecks into it, not writing checks from it, and not using the debit card, the fee is pure loss. Close it and move any remaining balance to an account you actually use.
The math is simple: a $10 monthly fee adds up to $120 a year. Even a $5 fee becomes $60 annually. If the account has no purpose in your financial life, that money disappears for nothing.
Before you close it, check your bank's website or call the number on the back of your card to confirm whether they charge a maintenance fee. Some banks waive the fee if you keep a minimum balance or set up direct deposit, so it's worth asking whether you can keep the account open for free instead.
Key Takeaways
- Close a checking account if your bank charges a monthly maintenance fee and you're not using the account for regular deposits or withdrawals.
- Before closing, confirm the fee amount and whether your bank will waive it if you meet certain conditions like keeping a minimum balance.
- Withdraw or transfer any remaining money, then contact your bank to close the account — do not simply stop using it.
- If you have automatic payments or direct deposits linked to the account, redirect them to your active account before closing.
- Keep the account open if it's free to maintain, because closing it can slightly lower your credit score and removes a line of available credit.
Reasons to keep a checking account open even if you don't use it
A free checking account that you're not using is worth keeping open. There is no downside to letting it sit dormant as long as the bank does not charge a fee. You lose nothing by keeping it.
Closing an account can lower your credit score slightly, because it reduces the total amount of credit available to you and shortens your average account age. The damage is usually small — a few points — but it is real. If you're planning to apply for a loan or mortgage soon, keeping old accounts open helps your score.
A second checking account also serves as a backup. If your main bank's systems go down, or if you lose your debit card and need cash immediately, having another account at a different bank means you're not locked out of your money.
What to do before you close the account
Do not simply stop using the account and assume it will close on its own. Abandoned accounts do not disappear — they sit open and may eventually be reported to your state as unclaimed property if they hold money. Close it intentionally.
First, withdraw or transfer any money remaining in the account. Check your bank statement to see the exact balance. If there's only a few dollars, you can withdraw it at an ATM or ask the bank to transfer it to your other account during the closing process.
Second, cancel any automatic payments or recurring transfers linked to the account. Log into your online banking and look for scheduled transfers, bill payments, or subscription charges. Redirect them to your active account. If you're not sure what's connected to the account, call your bank and ask them to review it with you.
Third, check whether you have a debit card attached to the account. Some banks will deactivate it automatically when you close the account, but others require you to destroy it yourself. Ask your bank what they need from you.
How to close the account
Call your bank or visit a branch in person. Closing by phone is faster and requires no appointment. Have your account number ready — it's on your debit card or any recent statement.
Tell the representative you want to close the account. They will confirm the balance one more time, ask where to send any remaining money, and process the closure. The account usually closes the same day, though it may take a few business days for the bank's system to fully process it.
Ask the bank to email or mail you a confirmation that the account is closed. This gives you proof if there's ever a dispute later. Keep the confirmation for your records.
If you close the account in person at a branch, bring a photo ID. The teller will handle everything and give you a receipt on the spot.
What happens after you close the account
Once the account is closed, you cannot deposit money into it or write checks from it. Any checks you've already written will bounce if they haven't cleared yet, so make sure all outstanding checks have been cashed before you close.
Your debit card will stop working. If you have automatic bill payments set up with that card, those payments will fail. This is why redirecting payments before closing is critical — a failed payment can trigger late fees or service interruptions.
The bank will report the closure to the credit bureaus. This appears on your credit report as a closed account, which has a small negative effect on your score. The impact fades over time, especially if you have other accounts in good standing.
If the account had a negative balance — meaning you owed the bank money — closing it does not erase the debt. The bank will still pursue collection. Make sure the account is at zero or positive before you close it.
When to keep the account open instead
Keep the account open if the bank does not charge a fee. The cost to you is zero, and the benefits of keeping it — backup access to money, a longer credit history, more available credit — outweigh the inconvenience of having an extra account.
Keep it open if you use it occasionally, even if it's just a few times a year. An account you use is not a burden; it's a tool. Only close accounts that serve no purpose and cost you money.
Keep it open if you have direct deposit or automatic payments set up with it. Closing it means finding a new account and updating all those connections, which takes time and creates risk of missed payments during the transition.
Frequently Asked Questions
Will closing a checking account hurt my credit score?
Yes, but only slightly. Closing an account lowers your available credit and may reduce your average account age, both of which have a small negative effect on your score. The damage is usually a few points and fades over time. If you're not planning to borrow money soon, this is not a reason to keep the account open.
What if I have pending checks that haven't cleared yet?
Wait until all outstanding checks have cleared before you close the account. You can check your bank statement online to see which checks have posted. If you close the account before they clear, those checks will bounce and the payee may charge you a fee.
Can I reopen a checking account I already closed?
Yes, you can open a new account at the same bank, but it will be treated as a new account with a new account number. Your old account number will not work. The process is the same as opening any other checking account.
What if the bank won't let me close the account?
Banks cannot force you to keep an account open. If a representative refuses to close it, ask to speak to a manager or call the customer service number on the back of your card. You have the right to close any account you own.
Do I need to close the account in person, or can I do it by phone?
Most banks allow you to close by phone, which is faster and requires no appointment. Some banks may require you to visit a branch in person, especially if there are complications or if you want to withdraw cash. Call your bank to ask what they require.