You found a better bank, you’re consolidating accounts, or you just noticed a fee you’re tired of paying. Whatever the reason, knowing how to close a bank account properly is one of those tasks that seems simple until you realize your paycheck, your Netflix subscription, and three other automatic payments are all still tied to it.
Quick answer: To close a bank account, open your new account first, redirect direct deposits and automatic payments, withdraw or transfer the remaining balance to zero, then contact your bank by phone, in person, online, or by mail to request the closure — and get written confirmation once it’s done.
That’s the short version. Here’s the full process, including what to do differently if it’s a business account, and what actually happens to your credit when an account closes.
Before You Close a Bank Account: 4 Things to Do First
Skipping prep work is the single biggest reason people end up with a bounced bill or a lingering negative balance. Do these four things before you call your bank.
1. Open your new account (if you haven’t already). You’ll need somewhere for your direct deposits and automatic payments to land. Trying to close an account before your new one is fully set up is how people miss a paycheck.
2. List every automatic payment and deposit tied to the account. Pull up two to three months of statements and note anything that moves in or out automatically — utility bills, streaming subscriptions, gym memberships, insurance premiums, and your paycheck or Social Security deposit. This is also where apps like Zelle or Venmo can trip you up: if either is linked to your old account for transfers, you’ll need to update the linked account in the app itself, separately from your bank.
3. Redirect direct deposits and update autopay. Give your employer or benefits provider your new account and routing numbers, and log into each biller’s site to swap the payment method. Ask how long the change takes to go into effect — some payroll systems need a full cycle.
4. Bring the balance to exactly zero. Withdraw or transfer every remaining dollar. A leftover balance is fine if it’s positive (the bank will usually mail you a check), but a negative balance is the one thing you cannot leave behind — more on why in the credit score section below.
How to Close a Bank Account, Step by Step
Once the prep work is done, closing the account itself is quick.
- Confirm there are no pending transactions. Any checks, pending debit charges, or scheduled transfers should clear first — closing an account with pending items can cause a mess for both you and the recipient.
- Contact your bank to request closure. Call customer service, visit a branch, use the secure message center in your online banking portal, or mail a signed request — availability depends on the institution.
- Verify your identity and confirm the account details. Expect to answer security questions or provide ID.
- Ask about any final fees. Some banks charge an early closure fee if the account is only a few months old, so ask before you finalize.
- Request written confirmation. Get an email, letter, or downloadable statement showing a $0 balance and “closed” status. Keep it — it’s your proof if a stray transaction posts later.
- Watch the old account for 30–60 days. Even after closure, it’s worth checking that no forgotten subscription tries to charge it.
Closing a Bank Account Online vs. Phone vs. In Person vs. Mail
Not every bank offers every method. Here’s how the options compare.
| Method | Typical Speed | Best For |
|---|---|---|
| Online/app chat or secure message | Same day–a few days | Banks with full digital account management |
| Phone | Same day | Quick closures with account in good standing |
| In person at a branch | Same day | Accounts needing notarized paperwork or cash withdrawal |
| Mail (signed letter of intent) | 1–3 weeks | Banks without local branches or online closure tools |
Some banks require a signed letter of intent even for online closures, so check your account agreement — it spells out the exact closure procedure your bank follows.
How to Close a Business Bank Account
Business accounts involve more paperwork because more than one person is usually authorized to move money.
- Settle every outstanding transaction. Cancel pending direct debits and make sure no vendor payments or client invoices are still in flight — an unfinished payment can leave a vendor unpaid or a client’s payment stranded.
- Gather your documents. Most banks ask for proof of the business name and address, incorporation or partnership paperwork (including formation date and business structure), the account details, and confirmation of everyone authorized to open or close accounts.
- Submit a formal closure request in writing. The letter needs a signature from every person authorized to transact on the account’s behalf — check your formation documents to confirm who that includes.
- Open a new business account and move the funds. Once outstanding payments have cleared, transfer the balance and update vendors and clients with your new account details so payments don’t stall.
- Confirm the closure in writing. Just like a personal account, get documentation showing the business account is closed with a zero balance.
Your EIN doesn’t close with the account — it stays tied to your business regardless of which bank you use.
Does Closing a Bank Account Hurt Your Credit Score?
Short answer: no, not directly. Checking and savings accounts don’t appear on your credit report at all — the three major bureaus (Equifax, Experian, and TransUnion) build your credit report from how you manage borrowed money, not deposit accounts, and the CFPB confirms this directly.
The exception is a negative balance. If you close an account while you still owe the bank money — from overdraft fees or unpaid charges — and don’t pay it off, the bank can send that debt to a collection agency. From there it can land on your credit report and drag your score down, sometimes for up to seven years. An overdrawn account can also get reported separately to ChexSystems, a specialty agency that tracks deposit account history rather than credit, and that record can stay on file for five years, making it harder to open a new account elsewhere.
The fix is simple: pay off any negative balance before you request the closure, not after.
What If the Bank Closes Your Account First?
Sometimes the bank makes the decision for you. Common triggers include a long stretch of inactivity (dormancy), repeated overdrafts, or a pattern of bounced checks. If this happens, you’ll typically get a notice by mail — don’t ignore it. Treat it exactly like a voluntary closure: redirect payments, settle any balance owed, and request written confirmation once it’s resolved.
Common Mistakes to Avoid
- Closing the account before redirecting autopay. This is the #1 cause of missed bill payments.
- Leaving a negative balance. Even a few dollars in overdraft fees can end up in collections if ignored.
- Not getting written confirmation. Without it, you have no proof if the bank’s records show the account differently than you expect.
- Forgetting linked apps. Zelle, Venmo, and similar services keep their own linked-account settings — closing the bank account doesn’t automatically update them.
- Closing a business account with only one signer’s approval when the account requires multiple authorized signatures.
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FAQ
Does closing a bank account hurt your credit score?
No, not directly — checking and savings accounts aren’t part of your credit report. It can hurt your credit indirectly if you close the account with an unpaid negative balance that gets sent to a collection agency.
How long does it take to close a bank account?
Often the same day if you close by phone, in person, or through online banking. Mail-based closures can take one to three weeks depending on the bank.
Can I close a bank account with money still in it?
Yes, most banks will mail you a check or transfer the remaining balance to another account, though it’s simpler to withdraw the funds yourself first.
Can a bank close my account without my permission?
Yes. Banks can close accounts for extended inactivity, repeated overdrafts, or suspected fraud. You’ll usually receive advance notice by mail.
Do I have to close a bank account in person?
Not always. Many banks allow closure by phone, secure message, or mail, but some require in-person or notarized paperwork — check your bank’s account agreement.
What happens to automatic payments after I close the account?
Any payment still linked to the closed account will fail or bounce unless you’ve updated it beforehand, which is why redirecting autopay is the first step, not the last.
How do I close a business bank account?
Settle outstanding transactions, gather your business documents, submit a signed closure letter from all authorized signers, and request written confirmation once it’s done.
Should I close an old bank account I never use?
It’s often worth it if the account charges a dormancy or maintenance fee, but check for a positive balance and redirect anything still linked to it first.