Can I close my account whenever I want? | Consumer Financial Protection Bureau (2024)

FAQs

Can you close a bank account anytime? ›

Most of the time, yes, but your bank or credit union may require you to settle your balance before allowing you to close an account that is overdrawn. If you want to close your account, you should call your bank or credit union or go in person and give them your account information.

Not only do most banks not charge a fee to close a basic savings account, but doing so will not affect your credit score. If, however, your account has a negative balance, you will need to repay that at the time of closing the account.

Generally, the bank will not close a checking account that is in an overdraft status. Such an account will be kept open until it is brought current. Then, the account can be closed. Review your deposit account agreement for policies specific to your bank and account.

Your bank account could be closed by your bank for many reasons, including inactivity or low usage. Banks aren't required to give notice when they close an account. Consult your bank's deposit account agreement for guidelines on when an account might be closed.

An early account closure fee is a predetermined amount of money — usually between $5 and $50 — that the bank will charge you for closing your account soon after opening it. Of the banks that charge this fee, many will impose it upon customers who close their accounts within 90 days of opening.

Contact Your Bank

Cancel your bank account. Many financial institutions allow you to do this online, but it could require a phone call to customer service or a visit to a local bank branch. Some banks and credit unions may require you to fill out an account closure request form or submit a written request.

Closing an account doesn't hurt your credit, but there are steps you should take to ensure your credit stays unaffected when you do so. Ruth Sarreal is a content management specialist covering consumer banking topics at NerdWallet.

Closing a bank account typically won't hurt your credit. Your credit score is based on how you manage borrowed money, and your checking or savings accounts aren't debts. So bank account closures aren't reported to the three major credit bureaus: Experian, TransUnion and Equifax.

If fees are periodically deducted, the account is technically active. “As you let your unused account remain open, you could come to realize that your bank is slowly eating away at whatever money is left,” said McDaniels. “Do not let this happen to you. Close your accounts on your own terms and keep your money.”

To close your bank account, you must write an application letter to the manager of your respective bank branch. Along with the application, you must also include/attach the documentation required to shut your account, such as a passbook, chequebook, ATM card (debit/credit), identity proof and so on.

How long does it take to close a bank account? ›

How long does it take to close a bank account? If an account has no balance, it only takes a few minutes to close it by phone or in a bank branch. If there is cash in the account, you'll need to withdraw your remaining balance to complete the process. .

Every bank has set limits for customer to maintain minimum balance in the savings account. If you empty the bank balance and do not close the account, bank will start levying penalty for not maintaining minimum balance. Whenever your account gets a credit, this penalty will be automatically debited from the balance.

Closing a bank account isn't difficult. However, you need to be careful so that you avoid missing automatic payments or direct deposits and steer clear of account fees.

Banks can freeze an account for a variety of reasons, including suspicious or illegal activity, or unpaid debts due to creditors or governments. Banks may freeze accounts for using the account in a manner that goes against its policies.