Sometimes, you find yourself in a situation where you need to close a checking account. It can be for financial reasons, needing a new bank because you are moving, or changing to another bank because of better services and rates.
Look below at the steps for closing a bank account. Click on each row to learn a little more about each step.
You need to have a new account to use when you decide to close the old account. This is important because you still must have an account to use.
If you have automatic payments set up with different places you pay bills, you will need to update these accounts to continue to pay the bills without any issues.
When closing an account, you will need to transfer money from the account you are closing into the new account.
You will need to contact the bank to let them know you want to close the account. You may need to fill out paperwork and go through steps at the bank to proceed with the process.
Once you close the account, you will need to get written documentation from the bank confirming that the account is closed.
Take some time to look at the question below. Think of your answer, and then compare it to the answer given.
Question
Why do you think it is important to have a new account ready before you close an existing account?
If you do not have an account ready, your current bill payments could be disrupted. If you don't have an open account, there is no place to transfer money to or from. If you take out a large amount of money when you close the account, it could be inconvenient and difficult to carry that much cash.
