How to Close a Bank Account Online: Tips & Procedures

Whether you’re moving to a new part of the globe where your current bank doesn't operate or want to switch to an account with lower fees, it may be time to close one bank account and open another. But can you close a bank account online?

As the world embraces online banking, the answer to that question is increasingly “yes.” However, there are some steps that should be taken to properly close an old bank account to avoid losing money to fees and service charges.

In this article, we’ll cover how to close a bank account online without any undue complications.

Can You Close a Bank Account Online?

Many banks offer several options for closing down an unwanted account. These include calling the bank’s customer service line by phone or visiting your local bank branch. It may also be possible to close an account on the bank’s website or in its mobile app.

Some banks may allow customers to close accounts by using the customer service chat feature on their banking apps or websites. However, others may require customers to upload a signed letter of intent in order to close an account.

If you’re uncertain about a bank’s account closure policy, take a look at the account agreement. This document should explain the proper procedure for closing an account, as well as any fees that may apply. Typically, you can find this agreement online or in a mobile banking app.

No matter which method of account closure you choose, be sure to request a written confirmation that the account has been successfully closed.

How To Close a PNC Bank Account Online

PNC allows customers to close unneeded accounts by visiting their local bank branch, by calling the customer care center, or by using the customer service chat feature on the bank’s website. This option is available on weekdays, from 6 a.m. to 12 a.m. Eastern Time.

In order to close the account, you’ll need to provide your full name, as well as Social Security number, account number, and full mailing address.

Steps To Take When Closing a Bank Account

Before closing a bank account, there are a few important steps that you should take.

Step One: Open a New Bank Account

When closing a bank account, it’s important to have somewhere else to put any funds that you withdraw or receive via direct deposit. Therefore, it’s crucial to have another bank account already in place — whether it’s an account you’ve had for a while or a brand-new account.

The new bank account does not need to be held at the same financial institution as the old one. In fact, if you haven’t done so already, take this opportunity to shop around for an account that offers higher interest rates or has a more favorable fee structure.

In addition, some banks offer special promotional rates or other benefits when opening a new account.

Step Two: Transfer Your Scheduled Payments and Deposits

If you receive any direct deposits — such as a biweekly paycheck — or have any regularly recurring bill payments connected to the older account, it’s important to transfer automatic deposits or withdrawals to the new account.

Your employer should be able to provide forms that update your direct deposit payment. It’s a good idea to do this as soon as possible so the next paycheck lands in the new account.

As for recurring payments, review several months’ worth of account statements and make a list of all payments that need to be updated. Look for debits such as:

• Mortgage payments
• Credit card payments
• Car payments
• Insurance payments
• Student loan payments
• Personal loan payments
• Gym membership dues
• Streaming service subscriptions
• Electric bills
• Phone bills

Step Three: Move Your Money

Once the new account is ready and waiting and you’ve updated the information for direct deposits and debits, it’s tempting to immediately transfer the funds from the old account.

However, before doing this, it’s critical that you let any outstanding transactions clear. If you don’t the bank may charge overdraft fees.

Once all pending transactions are cleared, it’s time to transfer the funds. Make sure that there is either a positive balance or a balance of zero in the old account until it’s closed, or you may have to pay extra fees.

Save or download any statements or other documents you may need later for filing tax returns or other financial purposes. Many banks charge a fee to send you a document associated with a closed account.

Step Four: Contact the Bank to Verify the Procedure

Before closing a bank account online, it’s worth contacting the bank and asking about the account closure process. This step may prove especially helpful because procedures and policies can vary by bank. Knowing the bank’s exact requirements may help the account closure process run smoothly and successfully.

Step Five: Cancel the Bank Account

Finally, it’s time to cancel the old bank account. Many banks will now allow you to close a bank account online, without visiting the local bank branch or calling a customer service hotline. However, some banks may require a combination of contact methods. For example, you may be able to initiate the closure process online but then finish the action over the phone or in person. You may also need to submit a written and even notarized request to close the account via mail.

When you close a bank account online or through another method, the bank will check to make sure the account is in good standing without any outstanding issues. If the account is overdrawn, you may need to pay a penalty fee.

If there are any funds remaining in the account, the bank may allow you to transfer the money to another account or receive the balance in the form of a check mailed to your address.

Step Six: Request Written Confirmation

According to the Consumer Financial Protection Bureau, it’s a good idea to request a confirmation note from the bank when closing an account._[1]  This documentation will allow you to quickly clear up any future misunderstandings. 

Closing a Joint Bank Account

Broadly speaking, the steps for closing a joint bank account are similar. However, policies may vary by bank. While some banks may require only one of the parties listed on the account to close the account online, others may require that both account holders visit a bank branch in person. Contact your bank to find out its policies for closing a joint bank account.

Does It Cost Anything to Close a Bank Account?

Typically, banks don’t charge any fees for closing most types of bank accounts as long as the account is in good standing (i.e., it is not overdrawn). That said, policies differ by bank. For example, you may be required to pay an early close out fee when shutting down an account within a certain period of time after opening it.

However, if you wish to close a certificate of deposit (CD) account before it reaches maturity, the bank will likely impose a penalty. This penalty may be the forfeiture of any earned interest.

Again, policies vary by bank. Be sure to contact your bank to find out if there are any fees associated with an account closure.

Does Closing a Bank Account Affect Your Credit Score?

Closing a checking or savings account will not have a direct effect on your credit score. The three major credit-reporting bureaus — Experian^®, Equifax^®, and TransUnion^® — do not factor in checking and savings account activity when calculating scores.

However, credit accounts such as credit cards, mortgages, and personal loans are within the bureaus’ purview. Closing credit accounts will show up on your credit report and affect the score.

That said, it’s possible that closing a checking or savings account could negatively affect your credit score indirectly. If the account is used to make recurring payments and you neglect to update the payment information, the payment will be late or missed. This may create a negative mark on your credit report.

How Long Does It Take to Close a Bank Account?

Usually, closing a bank account online is a relatively quick process once funds have been transferred to a new account and any outstanding payments have cleared.

Once the preparation work has been done, the act of canceling the account online may take only a few minutes.

The Bottom Line: Tips for Switching Banks

No matter the reason for closing an old bank account, the process for doing so online should be streamlined and quick if the proper steps are taken. Here are some tips to keep in mind:

• Make sure to check your bank’s policies before initiating an account closure.
• Review several months’ worth of statements to identify any direct deposits or debits that need to be updated.
• Open a new account before closing the old one — after all, any remaining funds have to go somewhere.
• Request written confirmation of the account closure.

In addition, take time to explore potential accounts before signing up for a new one. This may be the perfect opportunity to switch to a new account that pays a higher interest rate or charges lower fees.