About Bank Accounts

If you’ve been reading this site, you’ve probably seen plenty of US bank account opening bonuses and may have opened quite a few accounts yourself. Unlike credit cards, which can earn cash back through everyday spending, bank accounts—especially checking accounts—generally don’t generate much value if you don’t use them regularly. Some bank accounts even charge monthly maintenance fees, and having to meet specific requirements every month just to waive the fee can be a hassle. On top of that, if you’re unlucky, you could run into debit card fraud, checking account fraud, or accidentally incur an overdraft fee. So for bank accounts you no longer use, just closing them can be a very reasonable option.

Closing bank accounts such as checking or savings accounts generally does not affect your credit score. Some checking accounts allow you to earn the bonus multiple times, but only after a required waiting period, so closing unused accounts sooner can start the clock earlier for your next round of bonuses. Reducing the number of bank accounts you have can also lower your management burden and reduce fraud risk.

Also, if you’ll be outside the US for a long time and won’t need most of your US bank accounts, I’d suggest keeping 1-2 accounts at major banks and closing the rest. Some banks make account closure fairly cumbersome, and if fees are charged while you’re overseas, they can be difficult to resolve from abroad.

How to Prepare Before Closing an Account

Closing a bank account is usually not too hard, but making the right preparations ahead of time can reduce risk, help you avoid getting your account opening bonus clawed back, and prevent large amounts of money from getting stuck in the account. I’ve summarized a checklist of things you should ideally complete before closing an account. It’s best to go through this list in order, step by step.

Understand the Fees

Quite a few US banks—especially smaller banks—charge a penalty for closing a bank account too soon. This is called an early termination fee. If you close the account within a certain period after opening it, you may be charged this fee, which typically ranges from $20-$50. So before closing an account, make sure you understand whether this type of fee applies. If you’re not sure, call customer service and ask. If necessary, you can simply wait six months or longer; in many cases, the fee will no longer apply by then.

Fortunately, major banks such as BofA, Chase, Citi, and Capital One do not charge this fee, and online-only banks usually don’t either.

Pay Attention to Account Opening Bonus Requirements

Some bank accounts come with a signup bonus, but in addition to requirements like maintaining a certain balance or completing direct deposit (DD), you may also be required to keep the account open for a minimum period of time. For example, the Chase Checking bonus requires that you do not close the account within 90 days, or you won’t receive the bonus.

Both offers are not available to those whose accounts have been closed within 90 days or closed with a negative balance within the last 3 years.

This time restriction is usually stated on the account opening page, so don’t close the account too early and miss out on the bonus. If you’re not sure, ask customer service about the terms of the bonus associated with your account opening. As a rule of thumb, waiting at least 1 year is generally very safe. Also, I don’t recommend closing the account before the bonus has actually posted—better to have the bonus safely in hand first.

Stop Using the Account

If you’ve completed the first two steps and confirmed there’s no penalty for closing the account, don’t rush to close it immediately. I suggest keeping around $500 in the account (or, if you need to avoid a monthly fee, keep the balance right at the minimum required amount). Sometimes services or automatic credit card payments may still pull directly from your checking account. If the account balance is $0, that could trigger an over draft fee and cost you money unnecessarily.

Usually, leaving the account alone for 1-3 months is fine, depending on how urgently you need the money. If no new charge or withdrawal appears during that period, you can transfer out the remaining funds.

Withdraw as Much Money as Possible

Unless there are special circumstances, I recommend withdrawing all funds before closing the account. Common ways to move your money include:

  • Transfer via ACH Transfer, Zelle, etc. from the account (usually free)
  • Write yourself a check and deposit it into another of your accounts
  • Withdraw at a branch
  • Use your debit card to spend down the remaining balance (for example, buying a gift card on Amazon)

One thing to keep in mind: some checking accounts charge monthly fees. If your closure timing happens to cross the statement closing date and you don’t meet the fee waiver requirements for the next month, there’s a chance you’ll still be charged. I suggest leaving enough in the account to cover one month’s fee. If the fee posts, so be it; if not, the remaining funds will typically be mailed to you by check.

Ways to Close an Account

Once you’ve finished the preparations, closing the account becomes much less stressful. Below are several common ways to close a bank account. You can choose whichever method you’re most comfortable with. Of course, different banks may have different requirements, and some methods may not work at certain banks. If you want the least hassle, you can try the following methods in the order listed below. (Some DP comes from this DOC article.)

Let the Bank Auto-Close a $0 Balance Account

Some banks will automatically close your account if the balance remains at $0. So if you’re sure there are no fees left to worry about, you can transfer out all the money and wait for the bank to close the account automatically. Based on readers’ DP, this method works at some banks such as:

  • Chase Checking: kept at a $0 balance for 60 days, then automatically closed
  • Blue Hills Bank: a few months
  • FCB South County Bank: 10 days

That said, I still recommend closing the account proactively so you stay in control.

Send a Secure Message / Use Online Chat

One of the easiest ways to close an account is through the secure message feature in online banking. Taking Chase as an example, in the secure message interface, choose:

  • I have a question about one of my account
  • Select the checking account
  • Select Account Inquiry
  • Clearly state that you want to close this checking account
  • In the message, it’s a good idea to include your account number and explain how you want the remaining balance handled (for example, mail a check to your billing address, or ACH it to another account)

If you’re not sure how to use secure message, see:

Similarly, online chat can also be used to close an account, and the information you’ll need to provide is roughly the same. However, not every bank supports account closure via secure message or chat. Based on reader reports, some common banks that do allow online account closure include:

  • Chase: requires remaining balance below $50
  • BofA, Citi, Discover, Wells Fargo, etc.

Call Customer Service

For accounts that don’t support online closure, you can try calling the number on the back of your debit card and ask customer service whether the account can be closed over the phone. One advantage of closing by phone is that the representative can walk you through any account closure considerations, fees, and how the remaining balance will be handled. In addition, the rep may offer a retention offer—such as a deposit promotion or a higher interest rate—to persuade you to keep the account. So calling is also worth trying.

When calling, it’s best to have the following information ready:

  • Account Number
  • Phone Number
  • Billing Address
  • SSN, date of birth, and other personal information
  • The account number of the destination ACH account
  • The mailing address for the check

Send a Letter

Although most banks support account closure online or by phone, some older or smaller local banks still use the traditional method and require you to send a letter to close the account. A closure form or template is often available from the bank. You can also search Google for “xxx bank close account letter”.

For example, here is Wells Fargo’s bank account closure template:

Of course, you can also write these details yourself and send them to the bank. The relevant mailing address is often listed on your statement. If not, it’s best to call customer service and confirm the correct address.

Visit a Local Branch

If none of the methods above works, then you’ll need to go to a local branch. There isn’t much to say here—just tell them you want to close the account. You can withdraw the remaining balance on the spot or ask a representative to transfer it to another bank.

Things to Watch After Closing the Account

Usually, once the account is closed, you’ll see a notice when you log in to online banking. If it doesn’t show account closed right away, wait 1-2 days and check again to confirm that the closure has gone through. In addition, here are a few other things to keep in mind:

  • Remaining funds: If there was money left in the account when you closed it, it will usually be mailed to your billing address in the form of a check. If you don’t receive it within a month, contact customer service and find out what happened. If you moved and may miss the mail, it may be better to provide another bank’s checking account and have the funds transferred directly.
  • Record the closure date: If you want to earn the bonus on the same account again in the future, it’s a good idea to record the account closure date (and ideally the date the bonus posted as well). That will help you determine whether enough time has passed the next time you apply.
  • Watch your mail and phone calls: There’s a small chance that some service or credit card auto pay is still linked to your checking account, so keep an eye on emails and phone calls. If a payment fails, they’ll usually contact you.
  • Remove the payment method: If any of your credit cards use this checking account as a payment method, make sure to remove it. A payment initiated from the credit card side will not check whether your checking account has money in it or is even still open. If the payment fails, you could miss your due date and end up with interest charges or a past due fee.

Other Options

For a checking account with no monthly fee, no minimum balance requirement, and no account opening bonus, keeping it open usually isn’t a big problem. You can also contact customer service to see whether there are any extra offers available on your checking or savings account, such as a temporary high APY. Also, for banks like Citi and Chase that have multiple tiers of checking accounts, you could consider downgrading to an account with a lower monthly fee and easier fee-waiver requirements, and keep just one account.