Opening a bank account is a lot much easier than closing it. So, before you go to the bank and close your account, you should take a look at this guide and check if you are taking the right steps!
Although it may seem an easy procedure, closing a bank account can get complicated. Some banks have hidden procedures in the contract, others may charge you an extra fee and it some cases it may even end up affecting your finances.
So, before you pay a visit to the bank and close your account you should check these tips!
Step 1: Prepare yourself
Before you actually close your current bank account you should prepare yourself! You may want to check the following points before moving on:
- Define the kind of banking experience you want next: Check your options, you can look for an online bank, consider other types of accounts or analyze the traditional banks nearby.
- Analyze your financial habits: Base your next bank election on your habits and needs. Check additional fees, terms and conditions.
- Open your new bank account: Once you make your choice, go for it! And make sure you ask your employer to change the direct debit to the new account.
- Stop withdrawing from your old account: Some banks can reopen your account if it receives payments or other automatic deposits. Make sure there's no money movement at all in the account you are willing to close. Analyze thoroughly which automatic transfers you've set up in the account and cancel them.
Step 2: Transfer funds
Now your new account is set up, you may want to make sure that you check your old account's balance. Check if you have pending payments before you transfer all your funds to another account.
You should also check if the bank has any restrictions on transferring money. So, call customer services or visit the bank and learn if they have any additional fees or limits. Bear in mind that the Federal Reserve Board only allows six transfers per month from your savings or money market account.
Once again, don't forget to check if you've canceled all bank services associated with your account! Check that you've already completed or moved transfers and automatic payments.
Step 3: Close your account!
- Once you've transferred your funds to your new account, check for one last time that your account is empty.
- Make sure you take the time to understand the closing procedures. Check if you need to complete forms and, if you do, prepare the information the bank will ask for.
- Once you've closed the account, you will receive an official letter within the next 10 days confirming that the account no longer exists.
- Destroy your cards and checkbooks connected to this account. This way you will prevent yourself from using them and also avoid potential fraud.