How to Close a Bank Account

Closing your bank account may seem simple at first glance. However, there are several steps to follow to ensure your account is closed correctly. Following the correct process will help you avoid unnecessary charges, fees and complications. While the exact steps may vary by bank, this is how to close a bank account the right way.

If you need help beyond banking, a financial advisor can guide you in creating a financial plan.

1. Open a New Account

Your first step starts not with the account you want to close but rather, with your new account. You’ll need to open your new account first,, so you have somewhere to transfer your payments and funds later on.

Perhaps, you’re closing your bank account because you’re moving to a new area. However, if you’re closing the account because you’re unhappy with it or the bank itself, you’re going to want your new account to fit just right. A good place to start is simply by checking out the best checking accounts. That way, you know you’re starting your search with the best the industry can offer.

If the account you want to close charges too many bank fees, look for a free checking account to avoid any further fee hassle. There are a ton of options out there to choose from, so there is no reason to be stuck with an account you do not like.

Once you have found your new bank account, check whether the bank offers a switch kit. A bank’s switch kit includes checklists and forms to instruct depositors and billers about your account changes. These can help make the transfer process more convenient.

2. Update Automatic and Recurring Payments

Before you close your account for good, you need to tie up any loose ends. To start, take stock of all your automatic and recurring payments. This includes things like your music and television streaming services, your gym membership and student loan payments. It helps to review your bank statements from the past year to get an overall look at your spending habits.

Armed with your list of payments, you can begin canceling them from your old account and setting them up with your new account.

Be sure to take note the date of each next payment. This will prevent potentially paying twice for a service from each account. It will also ensure you do not overdraft one account to make the payment. On one hand, the payment might be drawn on your underfunded new account. On the other hand, the payment could draw on your old account after you have emptied it.

3. Switch Your Direct Deposits

Just as you want to look at where your money is going, do not forget about where your money is coming from. Head to your company’s payroll department to update your direct deposit settings to reflect the change in account. You will need to provide routing and account numbers for your new bank account. This may take some time to take effect, so be sure to monitor both accounts to ensure the changes go through correctly.

This also applies to any investment or brokerage accounts and any other sources of income you might have. You will have to change your account information in those accounts to make sure you receive your payouts.

4. Transfer Funds to Your New Account

Once you have updated your payments and deposits, you can transfer funds to your new account. Check whether there are any transfer limits since you may not be able to transfer your whole balance at once. In that case, you will have to transfer your balance a little bit at a time. Also, if your account has a minimum balance requirement, do not forget to keep that amount in there, too.

Remember all those payments you listed and updated? Do not forget to leave enough money in the account to cover any remaining payments. It might also help to leave some extra money in case other unexpected payments crop up. Otherwise, you could face overdraft fees.

5. Close the Account

A woman looks up how to close a bank account.

Now, it’s finally time to close your account. This may take weeks or months to complete, depending on how long it takes for payments to settle and migrate to the new account.

It’s important to ensure all your automatic payments are taken care of at this point. You don’t want to end up with a zombie account, which happens when a bank has to reopen your account to make a forgotten automatic payment.

There are typically a few ways you can close your account. You can head to the nearest branch to close it with a bank representative. This might be the most straightforward since you can ask any questions you might have.

If going to a physical location isn’t preferable, you can also close your account online. Each bank’s exact process will differ. Typically, you’ll need to contact customer service through your secure messaging system to request your account closure. Other banks may require you to call customer service or mail in a form to properly close the account.

6. Get Confirmation in Writing

No matter which way you close your account, you’ll want to obtain written confirmation from your bank that you closed your account. This will help you support your financial records for future reference. It can also come in handy as proof of closure if your old bank resurrects your old account to make future payments at any time.

7. Final Touches

To move on from your old account completely, it’s important to destroy your corresponding checks and debit card. This will prevent you from both accidental and fraudulent use.

Even though your account is now closed, don’t forget to save your bank statements. You will need them for your records and potentially for tax purposes.

Reasons You May Need to Close a Bank Account

There are several practical reasons why you might need to close a bank account. One of the most common is relocating to a new area where your current bank doesn’t have branches or ATMs. In such cases, it may be more convenient to switch to a bank that operates locally or offers strong mobile banking services. Others may close accounts after significant life changes, such as marriage, divorce or combining finances with a partner.

Another frequent reason is dissatisfaction with account features or customer service. High or unexpected fees, limited mobile banking options or poor in-branch support can prompt customers to look elsewhere. Many consumers move to online banks that offer lower fees, better interest rates and tools that better fit their financial habits. If your current bank no longer meets your needs, closing your account may help improve how you manage your money.

Some people also choose to close accounts to simplify their financial lives. Managing multiple accounts at different institutions can lead to confusion, missed payments or overlooked balances. Consolidating accounts under one bank can make it easier to track spending and savings. Whether you’re reducing clutter, reacting to poor service or adjusting to new circumstances, closing a bank account can be a smart financial move when planned carefully.

Bottom Line

Closing a bank account requires more than simply withdrawing your funds. To avoid fees, missed payments, or complications, it’s important to follow a clear step-by-step process. From opening a new account and updating your direct deposits to confirming the closure in writing, each stage plays a role in making the transition smooth. Taking the time to plan and review your account activity helps prevent disruptions and protects your finances during the switch.

A financial advisor can help you create a long-term financial strategy to suit your needs.

Tips on Finding the Right Bank Account

Not exactly sure what you need from your next bank? A financial advisor could help you get a better idea. The right advisor can look at your finances more comprehensively and determine whether you could be paying less in fees or saving at higher rates. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Are you ready to close your bank account but don’t have your next account lined up just yet? Not to worry, since you have a ton of options available. Perhaps you’re ready to move on from your old college checking account. You can take a look at the interest-earning checking accounts out there to make keeping your money in an account a little more worthwhile. On the other hand, if you see a potential overdraft in your future, find an account with low overdraft fees.