Closing a checking account usually costs nothing
Most banks do not charge you to close a checking account. You can walk into a branch, call customer service, or go online and request closure at no cost. Some banks make it straightforward; others require you to visit in person or mail a form. But the act of closing itself — the bank's fee for processing your request — is free at nearly every institution.
What matters more than the bank's fee is what you owe the bank. If your account is overdrawn (you owe them money), they will keep that amount. If you have pending transactions or automatic payments still processing, those will come out of your account before it closes. Understanding what happens to your money and your obligations is more important than worrying about a closure fee.
Key Takeaways
- Banks do not charge a fee to close a checking account, but you must settle any negative balance before closure.
- Pending transactions and automatic payments can still process after you request closure, so cancel recurring bills first.
- If you have direct deposit set up, change it to your new account before closing, or paychecks will be rejected.
- Some banks require you to visit a branch in person to close; others allow phone or online closure.
- Closing does not affect your credit score, but unpaid overdrafts can be reported to ChexSystems and damage your banking history.
What you need to do before the account closes
Before you request closure, move any money you want to keep to another account. Withdraw cash, transfer funds to a different bank, or write checks to yourself. Do not leave money sitting in the account you are closing — it will still be there, but accessing it becomes harder once the account is officially closed.
Cancel any automatic payments or recurring charges tied to the account. This includes subscriptions, gym memberships, insurance payments, and bill payments. Log into each service and update your payment method, or call the company directly. If you do not do this, the charges will bounce when the company tries to process them, and you may face overdraft fees or late fees from the merchant.
Change your direct deposit. If your paycheck goes to this account, contact your employer's payroll department or HR and provide your new account number and routing number. This usually takes one or two pay cycles to take effect, so do it well before you close the account.
Overdrafts and negative balances
If your account is overdrawn — meaning you owe the bank money — you must pay that amount before closure. The bank will not close the account until the balance is zero or positive. If you try to close with a negative balance, the bank will either refuse closure or deduct the amount owed from another account you have with them.
If you close an account with an unpaid overdraft, the bank may report it to ChexSystems, a banking history database. This can make it harder to open a new account at other banks for up to five years. Paying the overdraft before closure avoids this problem.
How long closure takes
Closing a checking account is usually when ready or takes a few business days. If you close in person at a branch, the account may close the same day. If you close by phone or online, it typically takes one to three business days for the closure to process.
During this time, pending transactions can still post to the account. A debit card charge you made three days ago might not show up until after you have requested closure. Make sure your account has enough money to cover these pending items, or they will overdraft the account and trigger fees.
Closing does not hurt your credit score
Closing a checking account has no direct effect on your credit score. Credit scores are based on credit history — loans, credit cards, and payment history — not on checking accounts. You can close as many checking accounts as you want without damaging your credit.
However, if you close an account with an unpaid overdraft, that unpaid debt can be reported to credit agencies and will hurt your score. The closure itself is not the problem; the unpaid debt is.
What happens to checks and debit cards
Once the account closes, any checks you wrote from that account will bounce if they have not cleared yet. If you have written checks that have not been deposited, contact the people who received them and ask them to wait, or write new checks from your new account.
Your debit card will stop working once the account closes. Destroy the card or cut it up so it cannot be used. If you have a PIN or online login credentials saved on your phone or computer, delete those too.
Different banks have different closure methods
Some banks let you close an account online through your banking app or website. Others require a phone call to customer service. A few still require you to visit a branch in person with a photo ID.
If you are closing an account at a large national bank like Chase, Bank of America, or Wells Fargo, you usually have multiple options — online, phone, or in person. If you are closing at a smaller regional bank or credit union, call ahead to ask what method they use. Having your account number and a form of ID ready will speed up the process.
Frequently Asked Questions
Can I close my account if I have a negative balance?
No. You must pay the negative balance first. The bank will not process closure until your account balance is zero or positive. If you cannot pay when ready, contact the bank about a payment plan.
Will closing my account affect my credit?
Closing the account itself does not affect your credit score. But if you close with an unpaid overdraft, that debt can be reported to credit bureaus and will lower your score. Pay any overdrafts before closure.
What if I close my account but a check clears after?
Checks that clear after closure will bounce. Contact anyone you wrote a check to and let them know the account is closed. Offer to pay by another method or write a new check from your new account.
Do I need to visit the bank in person to close?
Not always. Many banks allow closure by phone or online. Call your bank's customer service number or log into your account to see your options. If the bank requires an in-person visit, they will tell you when you call.
What should I do with my debit card after I close?
Cut up the card or destroy it so it cannot be used. The card will stop working once the account closes, but physically destroying it prevents accidental use or theft.