While it is a very straightforward and easy process to close your bank account, it may end up taking a long time if you don’t come prepared at all. This process may take one day, one week, or up to several months depending on various factors.
More often than not, you can finalize the closure of your bank account in just a day or two. The reasons for the delay may depend on how much funds you have in your account as well as how fast you reroute or deactivate online bill payments and direct payments to your new account.
Closing your bank account is an excellent chance for you to take a step back and gain a fresh perspective on your budget.
The following are the important steps for closing a bank account.
1. Open a New Bank Account or Transfer Your Money to a Different Bank Account
Make sure that you stick to the correct protocols when transferring your funds to a brand new account at another bank to prevent any unwanted mishaps. Most of the time, it is free to transfer money between two different accounts.
However, make sure that you check the policies of each bank first. There are also instances when there is a set limit to the amount of money that can be transferred at a given time or the number of transfers that can be done in a month. Be sure to plan accordingly.
2. Transfer Recurring Payments to Your New Bank Account
All you have to do is go online to have your payments switched over to another account. It might be a wise idea to go through your expenses for the past 6 months to be sure that you won’t miss transferring a recurring payment.
See to it that you also delete or update your saved banking details with all your preferred websites to be sure that you don’t end up accidentally charging the wrong account. Remember to call the payroll team of your company to update direct deposit details and plan ahead of time if ever errors arise.
3. Verify That You Cleared All Pending Payments
You should also double-check to ensure that you have terminated automatic transactions such as electronic debits and checks before you proceed to close your bank account. Your direct deposit should be switched to a new account or your chosen alternate account.
4. Give Your Former Bank a Heads Up
Contact your bank to let them know that you like your bank account to be officially closed. Give your previous bank enough of time to process this change.
5. Have Your Account Closing Form Completed, Signed, and Submitted
Remember that there might be a need to notarize your closing form. Notaries are often available at branch locations of credit unions and banks.
6. Destroy Your Old Debit Card and Checks
Make sure that you dispose of your old debit cards and checkbooks with your former bank account and do it securely and safely. This will prevent confusion and keep your personal details protected at the same time.
7. Record and Document All Steps
It should include the times and dates you talked to the bank representatives. These details might be necessary for future reference. Be sure to get the confirmation of the closure of the bank account in writing.