How to close a bank account?

close bank account

There are many reasons for wanting to close a bank account . Poor customer service, looking for better services within the online sector, moving to another country, fees and requirements that you cannot afford, changing banks. These are all valid reasons for closing a bank account.

And even if you don't figure in any of these issues, it's still perfectly acceptable for you to close your account. Regardless of the reason, here we explain how to proceed to close a bank account correctly and what to expect in the process.

Things to do before closing a bank account

If you have already made the decision to close your bank account , you should be sure to proceed with caution to avoid headaches and financial problems in the future.  

Select a new banking service

If you are closing a bank account due to a bank with poor and unprofessional products and services — or are looking to change banks — we want to let you know that not everyone   banks are like that. A bank account is necessary to lead a stable and secure financial life. Even if it is a prepaid card, an online bank, cryptocurrencies or any type of banking alternative, be sure to have a place to store your money. Perhaps learning how to choose a savings account will help you make a decision.

Verify that there are no pending payments

If you have credit card payments to make, pending transactions and commissions to pay, verify that they are all solvent. Failure to do so could lead to a penalty and many other financial problems. Also make sure they have been fully processed because you will not be able to cancel an account that is overdrawn . If you wrote a check for a client or friend, contact them to see if they have already been deposited.

Transfer the money to your new bank account

Once the new bank is selected, transfer the money without further ado. In this way you will ensure that your money is in a safe and accessible place at all times.

Steps to close a bank account

Like opening a bank account, closing it is just as easy. You just have to follow these steps:

Request cancellation

Going to the office of your nearest bank, or making the request through the internet - if the bank allows it. Present all the documents that will be required, mainly your ID to verify your identity. It is extremely important that the owner present himself directly at the branch, since his signature and that of the other owner - if there is one - will be required to authorize the closure of an account. This process must be recorded in writing.

Returns the products and services

If you have cards, checkbooks and notebooks from that bank, you must return them after closing a bank account.

Request a closing receipt

A closing receipt is a document that indicates that the financial relationship between you and your bank is no longer in force. Make sure to request it after closing your account to avoid any financial complications.

After completing all these steps, you will have already closed a bank account.

Does closing a bank account affect my credit?

The only processes that can be reflected in your credit history and negatively affect it are all activities that have to do with debts, credit cards, loans, or unpaid fees. That is why you should make sure to pay off all the debts you have with your bank before closing a bank account . Closing it will not eliminate them, they will still be there even after closing, and this will negatively affect your credit history, plus you will have to pay extra charges.

As a point to emphasize, I would like to mention that leaving an account to zero will not cause it to close itself. Rather, you could go into debt with the bank since you will not have funds to pay the maintenance fees, so close your bank account instead of abandoning it.

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