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How to Close a Bank Account

Here's how to close your old bank account and transfer funds to a new one.

Thinking it’s time to break up with your bank? Unfortunately, some banks don’t make the process as simple as they could. Rather than risk being charged monthly fees on an inactive account, here are some simple steps on how to close a bank account.

5 steps to close a bank account

Banks vary the methods you can use to close your account, but a quick phone call to a representative could help guide you through the process.

1. Open your new bank account

Before you close your old bank account, it’s probably a good idea to have a new account ready. It can take around seven to 10 business days for a new checking account’s debit card to arrive and possibly a few days to be officially approved for a new account. If you get that all ready now, once the old account is closed, your new account is ready for business.

Once your new account is open, give your employer or payroll officer your new routing and account number so your salary goes into the right account on payday. Share the same account information with anyone else who pays you, including any government benefits or extra sources of income.

2. Update automatic payments and direct deposits.

While you’re preparing to close your bank account, review your account’s transaction history, bills and automatic payments so you don’t run into issues once the account is closed.

Here’s a quick checklist of things you may need to switch to your new account before closing the old one:

  • Utility bills
  • Rent or mortgage payments
  • Subscription services
  • Gym memberships
  • Direct deposits, such as Social Security or payroll
  • Automatic savings contributions

If you’re feeling overwhelmed, you can also contact a bank representative at your new bank to help. They may be able to contact your old bank and request a list of all your direct debits and direct credits. Then, they’ll ask you which of those payments you’d like to transfer to your new account.

3. Transfer funds

Once everything is switched over to your new bank account, make sure all pending transactions have cleared, such as deposits, purchases or pending bill payments. Once you’re sure everything has cleared and things are all switched over, you can transfer funds to your new account.

One of the easiest ways to transfer funds out of a bank account is to do an ACH transfer. You can make the transfer for the full amount of your account, and in a lot of cases, ACH transfers are free or low-cost.

There are other ways to transfer funds, but they might incur some fees, so just watch out for that:

4. Contact your bank to close the account

Each bank has a different policy for closing accounts. Some let you close your account online, while others want you to call or visit a local branch. Call your bank to find out which closing method they require.

For example, to close a Chase Bank account, you can phone its customer service line or send a message through its online banking portal.

In most cases, your account balance must be $0.00 to close, but this can vary. If you close your account while it still has a balance, the bank or credit union will likely mail you a check for your now-closed account’s balance. Some banks charge fees for this, so read the fine print to know what to expect.

Be aware that it may take a few business days for an account to fully close.

5. Request written confirmation

The last thing you want is to rack up fees on a bank account you thought you closed, but something went wrong and it’s still open.

Some banks may charge inactivity fees for not using your account and/or continue to charge monthly fees, which could cause an overdraft on your account. Avoid these annoying fees and headaches altogether by getting written confirmation from your bank stating your account is officially closed.

Once you get official confirmation, shred or cut up any cards, checkbooks or account materials to protect your info. If you have a metal debit card, your bank may send you an envelope to mail back to them for them to destroy on their end.

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Bottom line

Closing an old bank account seems complicated, but it doesn’t have to be. All you have to do is find out your bank’s account closure policy, decide what you’ll do with the remaining funds and get written confirmation from your bank.

Before you close your account, take the time to shop around and find a new bank account to replace it.
Maybe you want a checking account without monthly fees or a savings account with a higher APY. And while you’re searching for new accounts, be sure to keep an eye out for new customer account bonuses.

No matter what you’re looking for, read carefully before opening. The last thing you need is to open a new account, only to find out later that the new account is worse than your old one. Learn more bank account guides and comparisons.

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To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
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Written by

Banking editor

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

Bethany's expertise
Bethany has written 446 Finder guides across topics including:
  • Personal finance
  • Banking
  • Auto loans
  • Insurance
  • Cryptocurrency and NFTs

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