Yes, you can move your account, and the process is simpler than most people think
You can move your money from one bank to another at any time. There is no penalty for leaving, no permission needed, and no waiting period. The bank you are leaving cannot stop you or charge you a fee just for closing the account. You own the money — the bank is straightforward holding it.
The actual move takes a few days to a few weeks, depending on how you do it. The slowest part is usually waiting for checks or automatic payments to clear, not the bank's work. If you move carefully, you can have money flowing into your new account before you close the old one, so you are never without access to your funds.
Key Takeaways
- You can close your account and move to another bank without penalty, and no bank can charge you a fee for leaving.
- The fastest way to move is to open the new account first, then set up a new direct deposit and automatic payments before closing the old account.
- Your bank routing number and account number change when you move, so you will need to update any employer, government agency, or creditor sending you money automatically.
- Checks take longer to clear than electronic transfers, so if you write many checks, allow extra time before closing the old account.
- Your old bank must return any unclaimed money to your state if you leave the account dormant for a set period, usually three to five years.
The three-step process: open, switch, close
Start by opening the new account at the bank you want to move to. You do not need to close the old account first. In fact, keeping both open for a few weeks makes the transition much safer.
Once the new account is open and you have your new routing number and account number, contact anyone who sends you money automatically — your employer, Social Security, a pension fund, or a government agency. Give them your new account details and ask them to update their records. This usually takes one to two pay cycles to take effect.
At the same time, update any automatic payments you make from your account — utilities, insurance, loan payments, subscriptions. Log into each company's website or call them to change the account they withdraw from. Write down each one as you go, so you do not forget any.
Once you have confirmed that money is flowing into the new account and payments are coming out of it, you can close the old account. Call the bank or visit a branch and ask to close it. Make sure the balance is zero or very close to it before you do. If there is money left, ask them to transfer it to your new account or issue a check.
What happens to checks and pending transactions
Checks are the slowest part of moving accounts. If you have written checks that have not cleared yet, those checks will still go to your old account when they arrive at the bank. The bank will pay them from that account, even if you have closed it — as long as there is money there.
This is why you should not close the old account until you are confident all checks have cleared. If you are not sure, keep the old account open for at least two more weeks after your last check was written. You can ask the bank to tell you when the account has had no activity for a certain period, or you can check online periodically.
Automatic payments work differently. Once you have updated the company's records with your new account number, the next payment will come from the new account. The old account will not be involved. If you forget to update a payment and it tries to withdraw from the closed account, the payment will bounce and you may face a late fee from the company — so updating these is important.
Moving money without closing the old account
You do not have to close the old account right away, or ever. Some people keep a small account at their original bank for sentimental reasons, or because they have had it for decades and it has a good interest rate. You can straightforward stop using it and leave it dormant.
If you do leave an account dormant — meaning no deposits, withdrawals, or transfers for a long time — the bank will eventually turn it over to your state as unclaimed property. The time varies by state, usually three to five years. Your money does not disappear; it goes into a state fund, and you can reclaim it by contacting your state's unclaimed property office. But it is simpler to close the account yourself and avoid this process.
Moving between two banks that are part of the same company
Some large financial companies own multiple banks. For example, a company might own both a traditional bank and an online-only bank. If you are moving between accounts within the same company, the process is often faster because the company controls both sides.
You may be able to transfer money when ready between the accounts, and the company may be able to move your direct deposits and automatic payments for you without you having to contact each employer or creditor separately. Ask the bank whether they offer this service. Even if they do, it is still your responsibility to confirm that the transfers have gone through before you close the old account.
What to do if you have a negative balance or unpaid fees
If your account is overdrawn — meaning you owe the bank money — you cannot straightforward close it and move on. The bank will not let you close an account with a negative balance. You must deposit enough money to bring the balance to zero, or at least to cover any unpaid fees or overdraft charges.
If you are unsure whether you owe money, ask the bank for your current balance before you try to close the account. If there are unpaid fees, ask what they are for and whether they can be waived. Some banks will negotiate, especially if you have been a customer for a long time.
Moving your savings account or other account types
The process is the same whether you are moving a checking account, a savings account, or both. The main difference is that savings accounts usually have fewer automatic payments attached to them, so there is less to update.
If you have a certificate of deposit (CD) — a savings product where you agree to leave money untouched for a set time in exchange for a higher interest rate — you cannot straightforward move it to another bank. You must wait until the CD matures (the time period ends), then withdraw the money and open a new CD at the new bank. If you withdraw early, you will usually pay a penalty. Check your CD's terms to see when it matures and what the early withdrawal penalty is.
Frequently Asked Questions
Will closing my old account hurt my credit score?
No. Closing a checking or savings account does not affect your credit score. Credit scores are based on borrowed money — loans, credit cards, and payment history. Bank accounts are not part of that calculation. You can close as many bank accounts as you want without any credit impact.
What if I forget to update a company with my new account number?
The payment will bounce when it tries to withdraw from your closed account. You will likely face a late fee from the company. Contact them as soon as you realize the mistake, explain what happened, and ask them to update your account number and resubmit the payment. Many companies will waive the late fee if you fix it quickly.
Can I move my account if I have a loan with the bank?
Yes. Your loan and your checking or savings account are separate. You can move your account to another bank and keep the loan with the original bank. However, if the bank automatically withdraws your loan payment from your account, you will need to update that payment method before you close the account.
How long does it take to move everything?
Opening a new account takes a few minutes to a few hours. Updating direct deposits and automatic payments takes one to two business days per company. Waiting for checks to clear can take one to two weeks. The whole process usually takes two to four weeks if you do it carefully.
What if my new bank loses my deposit during the transfer?
If you transfer money electronically between banks, the transfer is tracked and insured. If money goes missing, you can contact either bank and they will investigate. The sending bank and receiving bank both keep records. This is rare, but if it happens, do not close the old account until the money shows up in the new one.