What happens when you close an Armed Forces Bank account
Armed Forces Bank is a federally chartered credit union that serves military members, veterans, and their families. When you close an account there, the bank stops processing transactions on that account, returns any remaining balance to you, and removes your access to online banking and debit cards tied to that account.
The process itself is straightforward: you contact the bank, confirm your identity, request closure, and receive your remaining funds. Armed Forces Bank does not charge a fee to close an account. The timeline is usually quick—most closures complete within a few business days, though it depends on how you initiate the request and whether you have outstanding checks or pending transactions.
Before you close, you need to know what happens to direct deposits, automatic payments, and any balance remaining in the account. The bank will not automatically redirect these to another account, so you have to set that up yourself beforehand or be prepared to handle them after closure.
Key Takeaways
- Armed Forces Bank does not charge a fee to close an account, and closure typically takes a few business days once you submit your request.
- You must cancel or redirect any automatic payments and direct deposits before or when ready after closure, or they will fail.
- The bank will mail you a check for any remaining balance, or you can request a transfer to another account if you provide the routing and account numbers.
- You can close an account by phone, by visiting a branch in person, or by mail—phone is usually fastest.
- Outstanding checks or pending transactions can delay closure, so confirm there are none before you request it.
How to close by phone or in person
The fastest way to close an Armed Forces Bank account is by phone. Call the member services number on the back of your debit card or on the Armed Forces Bank website. Have your account number and a form of identification ready. The representative will confirm your identity, ask why you are closing (they may offer options to keep the account open, but you can decline), and process the closure request.
If you prefer to close in person, visit any Armed Forces Bank branch with a government-issued ID and your account number. The branch staff will verify your identity, confirm there are no outstanding transactions, and process the closure on the spot. This method gives you the option to receive your remaining balance as a check when ready or request a transfer to another bank.
By phone, the closure is recorded in the system right away, but you will receive written confirmation by mail within a few days. By mail, you can send a written request to the address on your statement, but this method is slower and requires you to wait for confirmation.
What to do with automatic payments and direct deposits
Before you close your account, you must stop or redirect any automatic payments coming out of that account. This includes insurance premiums, loan payments, utility bills, subscription services, or any other recurring charge. Log into your Armed Forces Bank online account and cancel each one, or contact the company charging you and update your payment method.
If you have a military paycheck or other direct deposit going into this account, contact your payroll office or the organization sending the deposit and provide them with your new account number and routing number. This must happen before closure, or your next deposit will fail and you will have to contact payroll to reissue it.
If you close the account before updating these, the payments and deposits will bounce. The companies will charge you a returned-item fee, and you may face late fees on bills. Give yourself at least one week to make these changes before requesting closure.
How you receive your remaining balance
Armed Forces Bank will return any money left in your account after closure. You have two options: receive a check by mail, or request a direct transfer to another bank account.
If you choose a check, the bank will mail it to the address on file within five to seven business days of closure. The check is valid for six months. If you choose a transfer, provide the receiving bank's routing number and your account number at the time of closure. The transfer usually takes three to five business days.
If your account has a negative balance—meaning you owe the bank money—the bank will contact you about payment before processing closure. Do not ignore this; the debt will be reported to ChexSystems, a banking history database, and will affect your ability to open accounts at other banks.
Timing and what can delay closure
A straightforward closure takes three to five business days from the date you request it. The bank needs time to process the request, confirm no outstanding transactions are pending, and arrange your funds transfer or check.
Closure can be delayed if you have outstanding checks that have not yet cleared, pending ACH transfers (automatic payments or deposits), or a hold on the account. If the bank placed a hold on your account for any reason, you must resolve that before closure. Ask the bank directly whether any holds or pending items exist.
If you close an account and then a check you wrote months ago suddenly clears, the bank may reopen the account temporarily to process it, then close it again. This is rare but possible, so keep records of all checks you wrote from this account for at least six months after closure.
What happens to your debit card and online access
Once closure is processed, your debit card will stop working when ready. You do not need to do anything with it—it will straightforward decline at the point of sale. You can destroy it or leave it as is.
Your online banking access will also be disabled. You will no longer be able to log in to check balances or view transaction history. If you need records of past transactions, read or print your statements before you request closure.
If you have a linked savings account or other products with Armed Forces Bank, closing one account does not close the others. You must request closure for each account separately.
Closing an account if you no longer meet membership requirements
Armed Forces Bank membership is open to active-duty military, veterans, retirees, National Guard and Reserve members, and their families. If your status changes and you no longer meet the membership requirements, the bank may contact you about it. You can still keep the account open in most cases, but if the bank requires you to close it, the process is the same: contact member services and request closure.
If you are no longer may be able to access and the bank initiates closure, they will notify you in writing and give you time to withdraw your funds or request a transfer before the account is closed on their end.
Frequently Asked Questions
Can I reopen an Armed Forces Bank account after I close it?
Yes. You can open a new account at any time as long as you meet membership requirements. There is no waiting period. However, if your previous account had a negative balance or was closed due to fraud, the bank may require you to resolve that first.
What if I have a loan with Armed Forces Bank and I want to close my checking account?
You can close your checking account without closing a loan. However, if the loan payment is set to come out of that checking account, you must update the payment method before closure or the payment will fail. Contact the loan department to change the payment account.
Do I need to close my account in person, or can I do it entirely by phone?
You can close entirely by phone. You do not need to visit a branch. Phone closure is usually faster, and you will receive written confirmation by mail within a few days.
What if I have pending transactions when I request closure?
The bank will not close the account until pending transactions clear. Ask the bank how long this will take. Once they clear, the closure will process. You can check your online account to see which transactions are still pending.
Will closing my Armed Forces Bank account affect my credit score?
No. Closing a checking or savings account does not affect your credit score. Credit bureaus only track credit accounts like loans and credit cards. However, if you have an outstanding debt on the account, that may be reported and could affect your score.