How to close a bank account: A step-by-step guide

While closing a bank account, be sure to follow the right protocol to avoid any mishaps
A representative picture of the financial system. — Canva
A representative picture of the financial system. — Canva

Are you tired of paying unnecessary fees for your bank account? Do you want to switch to a different bank or close your account altogether? If so, you’ve come to the right place! In this step-by-step guide, Gad Insider will walk you through the process of closing your bank account. Closing a bank account can be a straightforward process if you follow the right steps.

Guide to closing your bank account

Transfer Money to Another Bank Account or Open a New Account: If you are transferring funds to a new account at a different bank, be sure to follow the right protocol to avoid any mishaps. Typically, transferring money between two accounts is free, but be sure to confirm each bank’s policies. 

Sometimes there is a limit on how much money you can transfer at one time or how many transfers you can make in a month, so plan accordingly.

Change All Recurring Payments to the New Bank Account: Switching your payments over to a different account can usually be completed easily online. It’s a good idea to review your last six months of expenses to make sure you don’t miss transferring any recurring payments. 

Be sure to update or delete your saved banking information with all of your favourite websites to ensure you don’t accidentally charge the wrong account. Don’t forget to contact your company’s payroll team to update your direct deposit information, and plan in advance in case there are any errors.

Confirm That All Pending Payments Have Cleared: Double-check that automatic transactions including checks and electronic debits are terminated before moving forward with closing your account. Be sure you switched your direct deposit to the new or alternate account of your choice.

Notify Your Former Bank: Call your bank to inform them that you want to officially close the bank account. Allow plenty of time for your previous bank to process the change processed.

Complete, Sign, and Submit the Account Closing Form: Keep in mind that you might need to get your closing form notarized. There are usually notaries available at the branch locations of banks and credit unions.

Destroy Old Cheques and Debit Card(s): Be sure to securely dispose of any old chequebooks and debit cards with your previous bank account. Not only will this prevent any confusion, but also it will protect your personal information.

Make a Document to Record Details of Each Step of the Process: This includes dates and times that you spoke to bank representatives. You never know when you might need this information for future reference.