Closing a Bank Account: A Step-by-Step Guide

If you leave the state or switch banks, you may want to close your old bank account. To close an account, you must first contact your bank. Your account can be closed using a couple of methods. If your bank account has a negative balance, it cannot be closed. If the account you wish to close is a checking account, make sure that all the checks you have written have cleared the bank. If there are pending transactions, they will not be processed.

Step 1

Cancel all pending transactions. Call any bank or company you deal with that has automatic payments set up to come out of your bank account. Stop all payroll, Social Security, pension and interest payments that go directly into your account. Review your check ledger to make sure all checks have cleared. If you wish to cancel transactions, make sure you give the companies enough time to stop the transactions from processing.

Step 2

Visit your bank and request that the account be closed. Present your picture identification to the branch manager. If you speak with a teller she will refer you to a sales associate or the branch manager. Put your request in writing and sign the letter. The manager will review your account to confirm the status of any payments and deposits. If the account is owned jointly, only one account holder needs to be present. You can also close your account by sending a letter to your bank.

Step 3

Receive your receipt and withdrawal slip. Any money in the account will be turned over to you in the form of a check or cash. Make sure you sign the slip and any other paperwork. If you wish to open another bank account, you can do so right away.

Tip

If you put your request in writing, make sure that your name, address, phone number and bank account number appear on your correspondence, as well as your signature.

Warning

If you have a negative balance, you will need to make a deposit. A negative balance, if not paid, can be reported to Chex Systems, which is a credit reporting agency that keeps a list of customers who have abused their checking account privileges. Once you are on ChexSystems it will be difficult to open a bank account. If you close certain types of bank accounts (such as certificates of deposit) before the maturity date, you could incur penalties.