Small and large banks regularly allow customers to open and close current accounts; however, there are many fine print hidden clauses. The real challenge today in closing a current account is due to the fact that many deposit and withdrawal services are automated. You need to carefully prepare your checking account in order to successfully close it and avoid potential financial disasters.
Steps
Part 1 of 3: Preparing to close the bank account
Step 1. If you are planning to change banks, open another bank account
Payment debits, direct deposits and bills to pay should be active on another account to avoid extra charges.
Step 2. Ask your employer to change the credit of your salary to the new account
Ask your new bank for the account number and bank details. Redirect all direct debits to the new account.
- If you receive electronic payments, remember to communicate the change of account and ask to update your bank details. Some banks require the reopening of the account if money arrives in the already closed account.
- If you regularly use PayPal or other types of electronic accounts, remember to update them with the new information.
Step 3. Bring all automatic withdrawals to the new account
Premiums for health insurance, rent and other things are usually taken automatically. If you forget to move them to your new account, your account may be reopened and you will incur additional costs.
Check the statement of the last year to check which automatic payments are debited to your account
Step 4. Call your bank, or go to a branch, and ask them to cancel any rotary services from your account
Again, you may incur additional fees, even after the account is closed.
The terms and conditions of the theft insurance or other services may require that it be canceled product by product
Step 5. Do not close an account that you have opened in the past 90 days
Many banks charge a tax on accounts that are open for less than 3 months.
Step 6. You must wait at least 30 or 45 days for all automatic deposits and withdrawals to be moved to your new account
Usually all banks need 30 days for the exchange to take effect.
If you close a certificate of deposit or securities account, they may charge you a fee covering 6 to 5 years. This is because these products require a commitment, otherwise you would lose the interest you have accrued and on top of that you would have to pay a fee
Part 2 of 3: Withdraw the funds
Step 1. Check the balance of the account you want to close
You need to know exactly how much is in your account before closing it. Print an account statement from the online account.
Step 2. Confirm that you want to transfer the money
The bank may have a limit on the amount you can transfer each time.
Contact your credit card customer office for information
Step 3. Move money from one account to another in the same bank
You save money if you do the online transfer.
Step 4. Transfer the money to a different bank account
You have to go to a branch and communicate your account number and bank details. They may request that a percentage of the amount of money you are transferring be withheld.
Step 5. Choose to get a check from the bank
Call the customer office or go to a branch. Ask for a check to be drawn with the account balance to be received at your address.
- Some banks only issue bank drafts for account closure. In this case you will have to pay something for the issue.
- At this point, confirm that you have deleted any banking services from that account.
Part 3 of 3: Close the account
Step 1. Stay online or ask the bank employee to close the account
Since there will be no more money in the account, you can close it. You must ask the account holders for authorization to close, so ask them to go and sign in a branch.
- If you use Wells Fargo, you can close your account via email, over the phone or in person. Go to wellsfargo.com and log into your online account. Click on "Contact Us" and submit an account closure request. Make sure there are no funds, because the email only allows you to close your account, not to have a check for the balance.
- Some banks require that the account closure request be sent by post.
Step 2. Ask for written confirmation of account closure
You can have it mailed to your address.
Step 3. Call or go to a branch if you do not receive the letter and check within 5 or 10 ten working days
If they do not arrive, it is very likely that there was some problem and that your account is still active.
Step 4. Deposit the check into your new account
If you have opted for a direct transfer, check your new account to make sure the transfer arrives.
Step 5. Keep both accounts audited for the next 30 days
Make sure all payments, debits, and credits work fine on the new account. Human error can delay closing your account.
