You’ve had enough. Whether it’s the exorbitant fees, lackluster interest rates, or terrible customer service, you’re ready to close your bank account and move on. But how exactly do you do that? Don’t worry, we’ve got you covered. In this beginner’s guide, we’ll walk you through the steps to bid farewell to your old bank and start afresh with a new one.
Reasons to Part Ways with Your Bank
There are plenty of reasons why you would want to break up with your bank. Here are just a few:
Avoid High Fees
Say goodbye to those sneaky fees that drain your account. Many banks charge you for not maintaining a minimum balance or have monthly maintenance fees. On top of that, you might encounter pesky charges for ATM withdrawals or electronic transfers. But fear not, there are banks out there that won’t nickel and dime you for your banking needs.
Get Better Interest Rates
Your money deserves to grow, and a bank with better interest rates can make that happen. While it may not make a significant difference for smaller balances, a high-yield savings account can supercharge your interest earnings in the long run, thanks to the magic of compounding.
Better Customer Service
Dealing with your bank shouldn’t feel like a chore. If you’re tired of unhelpful customer service or dread visiting your bank, it’s time to find a bank that treats you like a valued customer. A friendly and responsive customer service team can make all the difference in your banking experience.
Switch to a More Convenient Bank
Maybe you’ve moved to a new location or changed jobs, and you find yourself longing for a bank with a branch nearby. Or perhaps you’ve realized that you can handle all your banking needs online and want to switch to an online-only bank. Whatever the reason, finding a bank that aligns with your convenience needs is a valid choice.
Closing the Chapter on Your Bank Account
If you’re ready to say your goodbyes to your current bank, follow these steps to close your account smoothly:
1. Open a New Bank Account
Before you close your old account, make sure you have a new home for your money. Open a new bank account with all the features and benefits that you desire. It’s essential to have a place to deposit checks, pay bills, and receive your salary.
2. Transfer Your Recurring Payments
Next, ensure that your recurring payments, like your direct deposit or automatic bill payments, are redirected to your new bank account. Reach out to your employer’s human resources department to update your direct deposit information. Don’t forget to notify each company that automatically deducts payments from your bank account. Share your new account details with them, such as the routing and account numbers.
Pro tip: Consider keeping your old account open for a few months to cover any recurring bills that might still be charged to your old account. It takes time for new bank information to process.
3. Empty Your Old Account
Once you’ve confirmed that all your recurring payments are set up in your new account, it’s time to bring your old account balance down to zero. You can transfer the money online, use payment apps like Venmo or PayPal, write yourself a check, or withdraw your balance in cash. If you prefer a personal touch, you can also empty your account in person at a branch. Your choice!
4. Officially Close Your Account
With a zero balance, the time has come to bid farewell to your old account. Most banks don’t allow you to close your account online, so you’ll need to call customer service or pay a visit to a branch. Walk them through your desire to close the account, and before you know it, your old account will be a thing of the past.
5. Treasure Your Final Statement
Lastly, don’t forget to review your final bank statement for the closed account. It’s always a good idea to double-check for any charges and ensure that the balance is truly zero. Keep this statement for your records as a memento of your banking journey.
Before You Close the Book
Before you rush into closing your old account, take a moment to consider if it’s still useful. If your old account doesn’t have any recurring fees and you have no pressing need to close it, it might be worth keeping it for a while longer. After all, forgetting to move a recurring charge can result in fees and headaches. However, if you’re certain you no longer need it, closing unused accounts can simplify your finances and reduce the risk of fraud.
TIME Stamp: Easy Goodbyes, with a Dash of Care
Closing a bank account is a breeze when you know the steps. With careful planning and a bit of legwork, the transition to a new bank can be smooth sailing. Remember, only close an account with a zero balance that you’re absolutely sure you don’t need anymore. Now that you’re armed with the knowledge, it’s time to embrace the future and embark on your banking adventure.
Have any more questions? Check out the frequently asked questions below.
Frequently Asked Questions (FAQs)
How do you claim money from a closed bank account?
Most banks won’t close an account until the balance reaches zero. If you’ve closed an account but still have funds in it, contact the bank and request a check.
How long does it take to close a bank account?
If your account has no balance, closing it takes just a few minutes over the phone or at a bank branch. If there’s money in the account, you’ll need to withdraw the remaining balance before completing the process.
How do you close a bank account online?
While most online banks require verbal communication to close an account, some may offer self-service tools or chat support for account closure. Check with your bank to see if online closure is an option.
How do you close a joint bank account?
Closing a joint bank account follows the same process as closing an individual account. Any account holder can request to close the account as each owner has full access and control.
Does closing a bank account hurt your credit?
Closing a bank account doesn’t directly impact your credit score or report. However, be sure to close the account correctly to avoid any negative consequences.
How long do banks keep records of old accounts?
Each bank has its own policies for retaining records of closed accounts. Some banks retain records for years, while others have shorter periods. Contact your bank’s customer service for details on accessing old statements and account information.