How to Close a Bank Account

Reasons to Close Your Bank Account

There are many reasons you might want to close a bank account, such as:

• The fees are high. Many financial institutions charge bank account fees that drain your balance. Opening a different account or switching your bank or credit union can help you save money.
• There was fraud in the account. If you noticed unauthorized activity in your account or someone opened a new account under your name, you'll want to close the account to prevent further fraud.
• You want to switch banks. Another financial institution might be a better fit if it offers lower (or no) fees, convenient branch and ATM access, or improved digital capabilities.
• The customer service is lacking. Consider looking at credit unions in your area if you want improved customer service. In the J.D. Power 2025 U.S. Credit Union Satisfaction Study, credit unions outperformed banks in all categories, including trust, people and problem resolution.

Learn more: Reasons to Check Your Bank Account Every Day

How to Close a Bank Account

Depending on the financial institution, you may be able to close your bank account in person, over the phone, online or even by mail in some cases. Here's a look at how the process usually unfolds:

1. Find a New Bank Account

Before you close your bank account, you'll need to shop for a new place to keep your money. (You can skip this step if you're already happy with another bank account that you've opened.)

Ask people in your network—like friends, relatives and colleagues—for suggestions. Once you have a short list of financial institutions, do a little research.

• Read online reviews to check the bank's or credit union's customer service reputation.
• If the financial institution offers the products and services you need, look for fees, interest rates and minimum deposits.
• Research the digital banking tools and mobile app. If you plan to use them, are they highly rated?
• If it's important to have a network of branches and ATMs you can visit, check if the bank or credit union has a location near you.

2. Settle Unpaid Balances

If your account is in the negative, the bank typically will not allow you to close the account. If the balance remains negative for long enough, however, the bank might decide to close the account and send the unpaid balance to collections. An account in collections can be added to your credit report and hurt your credit score.

Unpaid overdrafts can also negatively affect your ChexSystems report, which is a banking history report that financial institutions typically pull when you apply for new bank accounts. Poor banking history can result in your applications getting denied, so make sure your account is in good standing by taking care of any outstanding balance.

Learn more: What Does It Mean to Be Unbanked?

3. Update Your Direct Deposits and Bill Payments

If you have direct deposits or autopay set up to pay bills, update the information to your new account. Reviewing your bank statements can help ensure that you catch any automatic bill payments that may be flying under the radar.

Keep an eye out for any correspondence from employers or creditors who may be having a hard time issuing or collecting payment. Like a negative bank balance, bills that go unpaid due to incorrect billing information can be sent to collections and hurt your credit score.

4. Withdraw Your Balance

Once all pending direct deposits and payments clear, transfer the remaining funds in your old account to your new one and move forward with the account cancellation. You may be able to withdraw the balance of your account using a regular check, cashier's check or an electronic transfer.

The specific steps you need to take to close an account can vary; directions on how to cancel are usually outlined on the financial institution's website or within your deposit account agreement.

Tip: Be sure to move any bill payments you make with autopay to your new account, or you could face nonsufficient funds fees from your previous account and returned payment fees from the company you're trying to pay.

5. Get Written Confirmation

Once your bank or credit union closes your account, make sure you have a written confirmation. This could be an email or a letter you receive in the mail. You may also receive your final account statement; go over it to ensure all transactions have been processed, including the final balance. Then, destroy any paper checks and debit cards connected to the account.

How Soon Can I Close My Bank Account?

Once you ask the bank or credit union to close your account, state law generally requires the institution to do so in a reasonable amount of time. But there are some important exceptions to consider.

If you opened an account and received a welcome bonus or promotional offer, you may be required to keep the account open for a specific period—typically around 90 days—to qualify for the offer.

Additionally, some banks charge early closure fees if you close your account within a certain time after opening, usually within the first 90 to 180 days. Before closing your account, review your account agreement or contact your bank directly to understand any waiting periods or fees that may apply to your specific situation.

Frequently Asked Questions

The Bottom Line

A bank account can be closed fairly quickly as long as your account is current, and the act of closing a bank account won't help or hurt your score on its own. If you're looking to make moves that could help improve your score, knowing what's in your credit report is a good first step. Experian offers free access to your credit report and FICO^® Score^Θ based on Experian data.

If you're thinking about opening a new checking account, the Experian Smart Money^™ Digital Checking Account & Debit Card can help you build credit without debt by automatically linking to Experian Boost^®ø, which gives you credit for eligible bill payments. You will also pay no monthly fees^¶ for Experian Smart Money, have access to more than 55,000 fee-free ATMs worldwide^** and could receive your paychecks up to two days early when you enroll in direct deposit^†. You can get an Experian Smart Money Account through a free or paid Experian membership, which also gives you access to your FICO^® Score, Experian credit report and more. See terms at experian.com/legal.