How Do You Close a Bank Account?

If you’re no longer being well-served by your current savings or checking account, it may be time to make a switch. Perhaps you’re moving and need a bank with closer branches or ATMs. Or maybe you’re looking for a new account that pays a higher annual percentage yield (APY).

Whatever the reason, while closing a bank account generally isn’t complicated, taking certain steps may help prevent hassles and possible fees. Here’s what you need to know about how to close a bank account.

6 Simple Steps to Closing a Bank Account

While closing a savings or checking account is generally a simple process, it requires more than just contacting your bank. There are a series of steps you’ll want to follow to ensure a smooth transition as you switch bank accounts. Here’s how to close a bank account.

Step 1: Decide Where You Want to Keep Your Money

Before you end one banking relationship, it’s a good idea to have another place lined up to stash your money. You may be able to increase your APY and reduce the cost of banking if you research your options. For example, high-yield savings accounts frequently have APYs of 3.00% or more as of early September 2026 — that’s many times higher than the current average national average rate of 0.38% APY.

If you have multiple financial goals and needs, you may want to have different types of bank accounts. For example, you might open different savings accounts for different objectives, such as one earmarked for an upcoming vacation or large purchase and another for your emergency fund, as well as a checking account. Just keep an eye out for any fees.

Step 2: Update Any Automated Transactions

If you have any direct deposits or automatic payments set up, you’ll need to move them to the new account whether you’re opening a checking account or a savings account. Check with your employer regarding any forms you need to fill out for direct deposit so your paycheck can be rerouted to the new account.

It’s also a good idea to comb through your statements and create a list of monthly recurring payments, such as automatic payment for loans, insurance policies, credit cards, streaming services, and the like, as well as annual subscriptions. A failed automated payment or negative account balance could trigger penalties.

Step 3: Move Your Money

Once your automatic payments are updated and any pending transactions have cleared, you can move your money out of your old account. However, the timing on this is critical: If an automatic payment or outstanding check goes through after you empty the account, you could end up overdrafting the account, which could trigger a fee.

Also, if your bank account has a minimum balance requirement, you may want to wait to transfer money out of the account until just before you officially close the account, so you don’t get hit with a fee due to a low balance.

Recommended: How Much Money Do You Need to Open a Bank Account?

Step 4: Monitor Your Old Account

After you’ve funded your new bank account, you can begin using it. However, you may want to keep your old account open for a couple of months as you transition to the new account, as long as it’s not costly to do so. This may help you catch any automatic transactions you forgot to change over.

Step 5: Download Your Transaction Records

Once your account is closed, you likely won’t have access to your transaction history and online statements. If you require any records of your banking activities under the old account (say, for tax purposes), you may want to download your documentation before you officially deactivate your account.

Step 6: Close Your Old Account

Once you’re set up and using your new savings account, you can close the old one.

The exact process for doing this will depend on your bank — some allow you to close a bank account online, while others require you to fill out an account closure request form or submit a written request. Be sure to follow your bank’s guidance on the proper method for closing an account.

If you still have money left in your account, typically, you should be able to request a transfer to your new account or receive a check by mail.

Because closed bank accounts may sometimes be reactivated in error and incur fees, it’s smart to get written confirmation of the account closure for your records. You’ll also want to carefully review your final bank account statement for any errors.

Common Reasons for Closing a Savings Account

Here’s a look at some reasons why you might want to close your current bank account and open a different one at the same or a different bank.

•   You’re moving and your current bank doesn’t have branches and ATMs near your new location.

•   Your bank’s hours don’t suit your lifestyle.

•   The bank has policies that don’t work for you, such as minimum balance and service fees.

•   You have multiple bank accounts and want to consolidate.

•   Another bank offers higher interest rates on savings accounts.

•   You want to change from a brick-and-mortar bank to an online bank.

•   You aren’t happy with your bank’s customer service.

•   You’re opening a joint account with a spouse or a joint bank account without being married.

•   You’re switching from a child account to an adult account.

Why It’s Important to Close a Savings Account Properly

Once you’ve decided you no longer want or need a certain bank account, it’s generally a good idea to properly close that account, rather than just let it sit unused. These are some of the reasons why this could be important.

Dormancy Fees and Other Penalties

Some banks charge account holders a “dormancy fee” after a period of time without any deposits or withdrawals. These fees may add up over time. Also, if your old bank account charges a monthly maintenance fee when your balance goes below a certain level, you could end up triggering that fee. If you have funds left in your unused savings account, these penalties might deplete them.

Fraud

If you’re not closely monitoring your old bank account, it may be more difficult to spot suspicious activity. Even inactive accounts contain personal information that could be exploited by identity thieves. Closing a rarely or never-used account may reduce the likelihood of your sensitive data falling into the wrong hands.

Lost Deposits

If you’ve signed up for direct deposits you don’t receive regularly — your yearly tax refund, for instance — you may forget that they were earmarked for an account you’re no longer actively using. And if a deposit is made into that account, you may not notice you received the payment.

While there are drawbacks to keeping an unused account open, you may also be wondering: Is it bad to close a savings account? The good news is, closing your account usually comes at no cost, as long as it’s not an account you recently opened within the last few months. Also, closing a bank account generally does not directly impact credit scores as long as the account is in good standing.

If, however, your account has a negative balance, you will need to repay that at the time of closing the account.

Recommended: What Happens to a Direct Deposit If It Goes to a Closed Account?

Closing a Joint Account

If you’re looking to close a joint checking or savings account, you’ll likely want to check with your bank about the correct procedure. Some banks require both parties to sign an account closure request or to request an account closure online.

Closing a Child’s Account

A child’s bank account is designed for kids under age 18. Typically, both the child and a parent or guardian act as joint account holders.

In some cases, a bank may automatically convert a child’s account into a regular account when the child turns 18. In that case, the child/now adult may be able to close the account on their own. If a parent or guardian is still the co-owner of the account, however, both parties usually need to request the closure of the account.

Closing an Inactive Account

An account may become “inactive” or “dormant” if its owner does not initiate any activity for a specific period of time, often two years. If your account has been marked inactive or dormant, you’ll typically need to reactivate it before it can be closed by the bank. Contact your bank’s customer service to reactivate your bank account. There might also be an option to do this online or through your mobile banking app.

Closing the Account of Someone Deceased

Closing the bank account of a loved one who has passed away is generally more complicated than closing your own bank account. Typically, the first step is to let the bank know of the account owner’s death. To do this, you may need to supply an original or certified copy of the death certificate and, possibly, other documents. The bank may then freeze the account, and stop any standing orders or direct debits.

When you’ve notified the bank about the death, they can let you know what the next steps will be and what other documentation they may need to officially close the account.

How Long Does It Take to Close a Bank Account?

If your bank account has a zero or positive balance and there are no pending transactions, closing a bank account is generally a quick process. Typically, the bank can close the account as soon as you make the request. If there are still pending transactions or unpaid fees, however, the process can take longer. You will likely need to wait for deposits or payments to fully clear and/or bring the balance into positive territory before you can close the account.

Can You Reopen a Closed Bank Account?

Generally, once a bank account is closed, it can’t be reopened. However, it may be possible to reopen a closed account if it was closed due to inactivity. Also, some banks reserve the right to reopen an account if another payment or deposit comes through.

When closing your account, it’s a good idea to ask the bank about their policy on transactions after an account is closed. If you find out that an old account was reopened due to a new transaction, you’ll likely want to withdraw or add funds and then close the account again. Be sure to update the person who billed or paid you with your new bank account information.

Does Closing a Bank Account Hurt Your Credit Score?

Closing a bank account will generally not have an impact on your credit if the account is in good standing. Bank accounts are different from credit card accounts and aren’t part of your consumer credit reports. Banks report account closures to the consumer reporting agency ChexSystems, which collects information about bank accounts that are closed. Opting to close a bank account typically won’t have a negative impact on your ChexSystems report as long as the account was not closed for negative behavior like repeated overdrafts.

The Takeaway

Even if you’ve been with the same bank for years, it’s typically worth reviewing your current savings and checking accounts from time to time to ensure that they meet your financial needs.

If you find an account that offers a higher APY on your deposits and/or charges lower or no fees, it may be well worth making the switch. Closing a bank account is usually a simple process and in most instances, there are typically no fees involved.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.10% APY on SoFi Checking and Savings.

FAQ

Does it cost money to close a bank account?

Typically, no. The one exception is if you close your account soon after opening it. Some banks charge something called an “early account closure” fee (ranging from $5 to $50) if a customer closes their account within 90 to 180 days of opening it. However, many banks and credit unions don’t charge early account closure fees. Check the institution’s policy before opening an account.

Can you close a bank account at any time?

Yes, you can request to close a savings (or checking) account any time. Just keep in mind that some banks charge what’s known as an early closure fee if an account holder closes their account within 90 to 180 days of opening it.

What happens when you close a bank account with money in it?

If you close a bank account but still have money in the account, you should receive a check from the bank for the remaining funds.

Can a bank close my account without my permission?

Yes. Banks generally have the right to close a bank account based on their policies. Reasons that a bank might close an account include no activity on the account for a period of time, a large number of overdraft fees or bounced checks, a zero or negative balance on the account, or if the account has been flagged for fraud or suspicious activity. Contact your bank to find out the reason the account was closed and what you might do to reopen it. If you feel the account was wrongly closed, you can file a complaint with the Office of the Comptroller of the Currency.

Should I leave a small balance when closing an account?

No, you generally should not leave a small balance when closing a bank account. Leaving a small amount of money does not keep an account active. Instead, transfer your funds out of the account, bringing the account balance to zero.

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