What happens when you delete a bank account
Closing a bank account means the bank stops accepting deposits and withdrawals on that account. The account itself stays in the bank's records, but you can no longer use it. Some banks use the word "close" and others use "delete" — they mean the same thing for a customer.
Before you close an account, the bank will ask you to move any money out. If there is money left in the account when you close it, the bank will either send it to you by check or transfer it to another account you own at that bank. If the account has a negative balance (you owe the bank money), you must pay that before closing.
After you close the account, any automatic payments or direct deposits tied to that account number will fail. This is why the most important step is telling anyone who sends you money or takes money from that account — your employer, the Social Security Administration, a creditor, or anyone else — that you have a new account number or that the old account is closed.
Key Takeaways
- You must move all money out of the account and pay any negative balance before the bank will close it.
- Stop automatic payments and direct deposits at least two weeks before closing, or redirect them to a new account.
- Contact your employer, benefits programs, and creditors with your new account number so payments do not fail.
- You can close an account in person at a branch, by phone, or by mail, depending on what your bank offers.
- Keep records of the closure for at least one year in case a payment tries to go through after the account is closed.
Steps to close your account before you visit or call
Start by making a list of everything connected to the account. Write down every automatic payment that comes out of it — insurance, utilities, loan payments, subscriptions. Write down every deposit that goes into it — paycheck, benefits, pension. You will need to change these before you close the account, or they will fail and cause problems.
Move your money out. If you are closing the account because you want to switch banks, transfer your balance to your new bank. If you are closing it because you do not use it anymore, withdraw the cash or move it to another account you own. The account must have a zero balance or a credit balance (money in your favor) before the bank will close it.
Stop or redirect automatic payments. Log into your account online or call the bank and look at the last 60 days of transactions. Any payment that repeats is an automatic payment. For each one, contact the company or organization taking the money and give them your new account number, or tell them to stop taking money from this account. Do this at least two weeks before you plan to close the account.
Do the same for direct deposits. If your paycheck, benefits, or pension goes into this account, contact your employer or the benefits program and give them your new account number. Again, do this before you close the account — do not wait until after.
How to close the account: in person, by phone, or by mail
In person at a branch: Bring a photo ID and your debit card or account number. Tell the teller you want to close the account. They will print a form for you to sign. Ask for a written confirmation of the closure and keep it. This is the fastest way and leaves no room for confusion.
By phone: Call the customer service number on the back of your debit card or on your bank statement. Have your account number and photo ID information ready. The representative will ask you to confirm your identity, then process the closure. Ask them to mail you a written confirmation. Write down the date, time, and the name of the person you spoke with.
By mail: Write a letter to the bank's customer service address (find this on your statement or the bank's website). Include your full name, account number, the date, and a sentence saying you want to close the account. Sign and date the letter. Send it certified mail with return receipt so you have proof the bank received it. Keep a copy for yourself.
Some banks also let you close an account through their mobile app or website. Log in and look for "account settings" or "close account." Not all banks offer this option, so if you do not see it, use one of the three methods above.
What to do if the account has a negative balance
A negative balance means you owe the bank money — usually because a payment went through when there was not enough money in the account, or because of monthly fees. The bank will not close the account until you pay this amount.
You can pay it by transferring money from another account you own, by going to a branch and depositing cash, or by giving the bank permission to take the money from another account. Once the balance is zero or positive, you can proceed with closing the account.
If you are not sure whether the account has a negative balance, log in online or call the bank and ask. Do not assume it is zero.
After the account is closed: what to watch for
Keep the written confirmation of closure for at least one year. If a payment tries to go through after the account is closed, you will have proof that you closed it on a specific date.
For the next month or two, check your new account to make sure all your regular deposits and payments have switched over. If a paycheck or benefit payment does not show up, contact your employer or benefits program right away — they may not have processed the account change yet.
If a company tries to take a payment from the closed account, the bank will reject it and may charge the company a fee. The company will then contact you for a new account number. This is normal and not your fault if you gave them the new number before closing the old account.
Reasons to close an account instead of just leaving it
An unused account still costs you money in some cases. Many banks charge a monthly maintenance fee even if you never use the account. Over time, these fees add up. Closing the account stops these charges.
An unused account can also be a security risk. The longer an account sits open, the longer a potential thief has to find the account number and try to use it. Closing accounts you do not need reduces this risk.
If you have many accounts at different banks, closing the ones you do not use makes it easier to track your money and stay organized. It also simplifies your finances if you ever need to show a bank or lender a list of your accounts.
Frequently Asked Questions
Can I reopen an account after I close it?
This depends on the bank. Some banks will let you reopen a closed account within a certain time period, usually 30 to 90 days. Others treat a closed account as permanent. Call your bank and ask before you close the account if you think you might need it again.
What if I close my account and then a check I wrote bounces?
If someone tries to cash a check from your closed account, the bank will reject it and mark it as a bounced check. The person who received the check may charge you a fee. This is why it is important to make sure all your checks have cleared before you close the account, or to tell people not to cash any outstanding checks.
Do I need to close accounts at other banks if I am switching to a new bank?
No. You can have accounts at multiple banks at the same time. Close only the accounts you do not want anymore. If you want to keep an account open as a backup or savings account, you can leave it open even if you are not using it regularly — just watch for monthly fees.
Will closing my account hurt my credit score?
Closing a bank account does not directly affect your credit score because banks do not report account closures to credit bureaus. However, if the account has a negative balance that you do not pay, the bank may send it to a collection agency, which can hurt your credit. Pay any negative balance before closing.
How long does it take to close an account?
If you close in person or by phone, the account closes when ready. If you close by mail, it may take one to two weeks for the bank to receive and process your letter. Ask for written confirmation in all cases and keep it until you are sure the account is closed.