How To Close A Bank Account

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by: jeremymcnielsen265
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Word Count: 466
Date: Wed, 15 Feb 2012 Time: 5:37 PM

For one reason or another, most people change banks at least once in their life and therefore have to go through the process of closing their old bank account. This process is fairly straightforward, but it is best to follow certain steps, or you may end up paying unnecessary charges. The very first step to closing an account is to simply stop using it. You will have to wait two weeks before cheques have cleared your account. You may check online and see if there are any outstanding transactions. You may also want to open a new account before your old one is closed. Carefully choose a new bank provider and apply for a bank account with them.

The next step involves calling your bank and asking about its cancellation policy. You may be charged a fee for closing your account. Once you know what the cancellation policy is, you then need to visit your bank. You may consider going before 3pm so that the bank processes your request on the same day. It is possible to write a letter rather than paying a visit in person, but the cancellation process will take longer if you do this.

You will probably need to provide at least two forms of indentification. If the bank does not have it as a requirement, you may opt for a letter. Provide as much detail as possible in your letter, to reduce the chance of having to write more than one. Do not forget to request that the bank sends the remaining balance to the address you specified. They should send you confirmation when your account has been closed anyway, but request it just in case it is not part of their standard procedure.

It is essential to close other cash reserve accounts which are tied to your bank account. For example, you do not want to have lines of credit that were tied to this account. Someone may steal your identity and reopen the account. All automatic withdrawals and transfers will all also need to be stopped / changed. This has to be done one month prior to closing your account so that you do not miss any of them. These include bill and insurance payments, membership fees, etc.

If you already made a request to have your account closed, you need to destroy your debit card and shred all remaining cheques. If you use them accidentally then you may find yourself being fined. This step is quite important. Once the bank sends you a conformation letter that the account is closed, you have gone though all steps of the process. It is advisable to hold to that letter for a few years just in case any problems arise at a later date.