Closing a bank account is a straightforward process, but it can take an unexpectedly long time if you're not prepared. Depending on a few different factors, the process can take a day, a week, or even a few months.
In most cases, closing a bank account can be completed in a day or two. The causes of delays can depend on the amount of funds in your account and how quickly you deactivate or redirect direct deposits and online bill payments to a new account.
Closing a bank account is a great opportunity to have a look at yours budget with a fresh perspective. Read more tips on how to close your bank account below.
1) Transfer money to another bank account or open a new account
If you are Money transfer If you have a new account with another bank, be sure to follow the correct protocol to avoid breakdowns. Transferring money between two accounts is usually free. However, be sure to confirm the guidelines of each bank. Sometimes there is a limit to how much money you can transfer at the same time or how many transfers you can make per month. So plan accordingly.
2) Change all recurring payments to the new bank account
Switching your payments to another account can usually be done easily online. It's a good idea to review spending over the past six months to make sure you don't miss the transfer of recurring payments. Update or delete your saved bank details with all your favorite websites to ensure that you don't accidentally charge the wrong account. Don't forget to contact your company's payroll team to update your direct deposit information, and plan ahead in case of errors.
3) Confirm that all pending payments have been deleted
Make sure that automatic transactions, including checks and electronic debits, are ended before proceeding to closing your account. Make sure you've switched your direct deposit to the new or alternative account of your choice.
4) Notify your previous bank
Call your bank to let them know that you want to officially close the bank account. Allow your previous bank enough time to process the processed change.
5) Fill out, sign and submit the account cancellation form
Note that you may need to notarize your final form. Notaries are generally available in the branches of banks and credit unions.
6) Destroy old checks and debit cards.
Safely dispose of old checkbooks and debit cards with your previous bank account. This not only prevents confusion but also protects your personal information.
7) Create a document to record details of every step of the process
This includes dates and times when you spoke to bank representatives. You never know when you may need this information for future reference. Also make sure you get a written confirmation of the account closure.
3 common reasons for closing a bank account
If you're wondering whether it's worth closing a bank account, learn about the most common reasons why people make this decision.
1) How to close a bank account that you had as a child
If you still have a shared account that your parents helped you open as a child, it may be time to close it. You must physically go to the bank with your parent who is the co-owner of the account. Both you and your parents fill out and sign an account cancellation form to officially cancel the bank account.
2) How to close a shared bank account
You must visit a physical bank location in person with the co-owner of your shared account to cancel it. Just as you closed your shared account for children, both owners of a shared account must agree to sign the account cancellation form. If your co-owner disagrees with your decision and does not cooperate, you may need to consult a lawyer.
3) How to close a bank account from someone who has passed away
Sometimes the money is automatically transferred to a beneficiary's account. However, you may have to close the deceased's bank account yourself and transfer it to the account of your choice. If you are a family member and there is no will, you will need to contact and work with the banks involved to gain access to the appropriate checking and savings accounts. It might make more sense to rename the deceased's bank accounts than to close the old ones.
Can you close a bank account online?
While many major banks have started to close their accounts online, many other banks will have to visit the bank in person to verify the closure. You may need a written request to close your account with your signature. This is used to review the process and prevent fraud. However, if you do not close your account, you may be charged a "dormant account" fee after a period of time.
The only way to determine if your bank allows you to close an online account is to contact them directly. Usually the best confirmation is to call and speak to a representative. If you think ahead, you can usually avoid fees by switching to a new bank. However, keep in mind that some fees are inevitable. The following explains whether you can close your account online at eight of the most popular banks in America.
Can you close?
Your account online?
Bank of America
Will closing a bank account affect my balance?
You may be wondering how closing a checking or savings account can affect your credit rating. If you are wise to keep the right amount of money in your account checking account You don't have to worry about closing your account at any time, which will affect your balance. Mostly, usual account closings or transfers will not help or affect your balance.
However, if you do not have overdraft protection, your account will have a negative balance and you will close the account without following up. Banks, lenders and creditors will notice this. If you have financial difficulties, do not wait until overdrafts and the resulting fees are fixed. To protect your balance, you must process outstanding payments immediately.
If you think closing your inactive bank account is not worthwhile, think again. If you do not close your account, you may be charged a "dormant account" fee after a period of time. Regardless of whether you are at the start of your financial journey or about to retire, you may need a refresher to close a bank account.
The process of opening an account is a great opportunity to think about your finances Money check. Perhaps you are already making progress with your goals, or you realize that you need to start budgeting and Invoice tracking as quickly as possible. With the right financial instruments like Mint & # 39; s budgeting appYou can expect long-term financial health and success.
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