Yes, you can close your current account and open a new one, but the timing and method matter
You can close a bank account at any time and open a new one at a different bank or with the same bank. There is no waiting period, no penalty for closing, and no rule against having multiple accounts. What matters is the order you do it in and whether you have moved your direct deposits and automatic payments first.
The most common reason to switch is a better interest rate, lower fees, or poor customer service. Some people close an account because they are moving to a new state where their current bank has no branches. Others want to separate finances—one account for bills, another for savings. All of these are straightforward to do, but if you close before redirecting your income and bills, money will land in an account that no longer exists.
Key Takeaways
- Redirect your direct deposits and automatic bill payments to your new account before you close the old one, or money will bounce and create overdraft fees or late payments.
- Most banks let you close an account online, by phone, or in person, and the process takes a few minutes to a few days.
- If your old account has a negative balance when you close it, the bank will deduct what you owe from your new account or send you a bill.
- Closing an account does not hurt your credit score, but opening a new one may trigger a hard inquiry that appears on your credit report for a short time.
- Keep records of the old account number and routing number for at least a year in case a delayed payment or refund arrives after closure.
Steps to take before closing your old account
The first step is to open your new account and confirm it is working. Deposit a small amount of money if possible, or wait for a test deposit from your employer or a service you use. Once you see money land in the new account, you know the account number and routing number are correct.
Next, change your direct deposit with your employer or benefits provider. This usually takes one pay cycle to take effect. If you receive Social Security, unemployment, or tax refunds, log into each program's website or call to update your banking information. Do not rely on memory—write down the new account and routing number and double-check them before submitting.
Then, go through your old account and find every automatic payment: utilities, insurance, subscriptions, loan payments, credit card payments. Log into each company's website or call their billing department and update your bank details. This step takes the most time but is the most important. A missed payment because money went to a closed account can damage your credit and trigger late fees.
After you have redirected everything, wait at least one full pay cycle (usually two weeks) to confirm that deposits and payments are hitting the new account correctly. Check your new account balance and your old account balance. Once you see that income is flowing in and bills are flowing out of the new account, you are ready to close.
How to close your bank account
Contact your bank and ask to close the account. Most banks let you do this online through your account settings, by calling customer service, or by visiting a branch in person. Online closure is fastest—it usually takes a few minutes and you get confirmation immediately. Phone closure takes 10 to 15 minutes. In-person closure requires you to bring a photo ID and takes about the same time as a phone call.
When you close, the bank will ask what to do with any remaining balance. If there is money left, they will transfer it to another account you own at that bank, mail you a check, or transfer it to your new account at a different bank. If the account is negative (you owe the bank money), they will tell you the amount owed. Some banks will deduct it from another account you have with them; others will send you a bill or refer it to a collection agency if you do not pay.
Ask the bank for written confirmation of the closure. This confirmation should include the date the account closed, the final balance, and the account number. Save this document for your records.
What happens to your old account number and routing number
Once your account is closed, the account number becomes inactive. If someone tries to deposit money to that account number, the deposit will bounce and return to the sender. If a company tries to withdraw money from that account, the withdrawal will fail and trigger an overdraft fee at the old bank (if the account is still open long enough to process the request) or simply be rejected.
This is why redirecting payments before closure is critical. A utility company, for example, might not update your payment method for several billing cycles. If they try to withdraw from your closed account, the payment fails, you get a late notice, and you have to call and update them again.
Keep your old account number and routing number written down for at least one year after closure. If a refund or delayed payment arrives after you close, you may need to provide this information to trace where the money went and recover it.
Opening a new account at the same bank versus a different bank
If you are opening a new account at the same bank where you currently have an account, the process is simpler. You can often do it online or in person in minutes. The bank already has your identity verified, so there is no additional paperwork. You can close your old account and open the new one on the same day if you want, because both accounts are in the bank's system.
If you are switching to a different bank entirely, the new bank will verify your identity, which usually involves a credit check or a review of your banking history. This verification can take a few minutes online or up to a few business days if you apply in person or by mail. Some banks will let you start using the account before verification is complete; others will hold it until the check is done.
Switching banks takes longer than opening a second account at your current bank, but it is still straightforward. The main delay is waiting for your first deposit to clear so you know the account is active and the routing number is correct.
How closing an account affects your credit and banking history
Closing a bank account does not hurt your credit score. Bank account closures are not reported to credit bureaus. Your credit score is based on credit accounts—credit cards, loans, lines of credit—not on checking or savings accounts.
Opening a new bank account may trigger a hard inquiry, which appears on your credit report for a few months. This inquiry has a small, temporary impact on your credit score—usually a few points—and disappears after about three months. Multiple hard inquiries in a short time can add up, so if you are opening several accounts at once, space them out by a week or two if possible.
Your banking history is separate from your credit report. Banks use a system called ChexSystems to track account closures, overdrafts, and fraud. If you close an account with a negative balance or a history of overdrafts, that information stays in ChexSystems for five years. Some banks check ChexSystems before opening a new account, so a bad banking history can make it harder to open an account elsewhere, even though it does not affect your credit score.
What to do if money arrives after you close the account
If a deposit or refund arrives after your account is closed, the bank will return it to the sender with a message that the account is no longer active. The sender will then contact you to get your new account information, or the money will sit in limbo until they try again.
If this happens, contact the sender (your employer, a government agency, a merchant) and provide your new account number and routing number. Ask them to resubmit the deposit. Keep the confirmation number or reference number they give you so you can follow up if the money does not arrive within one pay cycle.
If you receive a check mailed to your old address after closing, deposit it into your new account. If the check is made out to your old account number, you may need to contact the sender and ask for a new check made out to you by name instead.
Frequently Asked Questions
Can I close my account and open a new one on the same day?
Yes, if you are opening a new account at the same bank. If you are switching to a different bank, open the new account first, wait for it to be verified and active, redirect your deposits and payments, and then close the old account. This usually takes three to five business days.
Will I lose money if I close my account?
No, as long as you transfer any remaining balance to your new account or receive it as a check. The bank will not keep your money. If the account is negative, you owe the bank that amount, but your money itself will not disappear.
What if I forget to redirect a payment before closing?
The payment will fail and bounce back to the company trying to collect it. You will likely get a late notice and may be charged a late fee. Contact the company immediately, provide your new account information, and ask them to retry the payment. Explain that you recently closed your account so they know it was not intentional.
Do I need to close my old account, or can I just leave it open?
You do not have to close it. Some people keep an old account open for a year or two in case a delayed payment or refund arrives. However, if the account has a monthly maintenance fee, you will pay that fee for as long as it stays open. If you want to avoid the fee, close it once you are sure all your payments and deposits have been redirected.
Will opening a new account hurt my credit?
Opening a new bank account may trigger a hard inquiry that appears on your credit report and causes a small, temporary dip in your score—usually a few points. The impact fades after three months. Closing your old account does not affect your credit at all.