The Consumer Financial Protection Bureau recommends clearing all outstanding transactions and checking bank fee policies before calling or visiting a bank branch to close a bank account. Some banks, such as Wells Fargo, may allow customers to close online accounts via email request or a written letter.Continue Reading
Before closing an account, research the bank’s policies on account closure. Most banks don’t charge a fee for closing a savings account, but some charge a penalty for closing other accounts, such as money market accounts, states Ally Bank. Some banks, including Citibank and PNC Bank, charge a fee if an account is closed shortly after opening it, according to the Huffington Post.
Find a new bank, and transfer or cancel any automatic payments, deposits or fund transfers, such as rent payments, direct deposits and bill payments, well before closing the account, cautions U.S. News and World Report. Reviewing past bank statements can help customers determine which recurring transactions they need to transfer.
Regardless of how one closes an account, always request a written letter or documentation showing that the account was indeed closed, cautions Ally Bank. Some banks, such as Chase and Bank of America, reopen a closed account if a deposit is made, warns the Huffington Post. To avoid this, allow time for direct deposits and automatic transfers to reroute, which can take up to six weeks, advises a Bank of America official quoted by Huffington Post.Learn more about Personal Banking