Closing a checking account does not damage your credit or cost you money, but the timing and how you handle it matter
Closing a checking account itself causes no harm. Banks do not report account closures to credit bureaus, so your credit score will not drop. You will not lose money. The account straightforward stops existing, and any balance you have goes to you. What can go wrong is what happens in the days before and after you close it — unpaid bills that bounce, automatic payments that fail, or fees you did not expect.
The real risk is operational: a bill you forgot about tries to clear after you have closed the account, or a merchant keeps charging a card linked to that account. These are not consequences of closing; they are consequences of not planning the closure. The account closure itself is clean.
Key Takeaways
- Closing a checking account does not affect your credit score because banks do not report closures to credit bureaus.
- Any money in the account is yours to keep; the bank does not confiscate it or charge you to close.
- The danger is bills or subscriptions that still pull from the old account after you close it, causing overdraft fees or failed payments.
- Most banks let you close an account online, by phone, or in person, and the process takes minutes to hours.
- Waiting a month after switching accounts to close the old one gives you time to catch any stray charges.
Why closing an account does not hurt your credit
Credit bureaus — Equifax, Experian, and TransUnion — track your borrowing and repayment history. They care about credit cards, loans, and lines of credit. A checking account is not credit; it is a place to hold money. Banks do not report checking accounts to the bureaus at all, whether the account is open or closed.
Your credit score reflects whether you pay bills on time and how much debt you carry. Closing a checking account changes neither of those things. You could close ten checking accounts tomorrow and your credit report would look identical.
The only way a closed checking account touches your credit is indirectly: if you do not move your automatic bill payments to a new account, they fail, and the creditor reports the missed payment. That is a problem with the payment, not with closing the account.
What happens to money still in the account
Any balance you have when you close stays yours. The bank does not keep it. You can withdraw it in cash, transfer it to another account, or ask the bank to send you a check. Most banks process this within one business day.
If you close the account and leave money behind by mistake, contact the bank when ready. They will hold it and can transfer it to a new account or mail it to you. The longer you wait, the more complicated it becomes — some states have unclaimed property laws that move abandoned funds to the state after a set period (usually three to five years), and you would then have to file a claim with your state treasurer.
The real risk: bills and subscriptions that still pull from the closed account
This is where closing an account actually causes problems. If you have automatic payments set up — a utility bill, insurance premium, gym membership, streaming service — and you close the account without updating the payment method, one of two things happens. The payment either fails and the creditor reports a missed payment, or the bank charges you an overdraft fee because the payment tried to clear against a closed account.
The solution is to move all recurring charges to your new account before you close the old one. Log into each service — your electric company, insurance provider, subscription apps — and update the payment method. This takes time but prevents the problem entirely. If you are not sure what is still pulling from the account, check your bank statements for the past three months and look for any recurring charges.
Some people close the account and then catch a stray charge weeks later. At that point, contact the merchant and ask them to reverse it. If they refuse, file a dispute with your bank. The bank can sometimes recover the money even from a closed account if the charge was unauthorized or the account was closed before the charge posted.
Fees you might encounter when closing
Most banks do not charge a fee to close a checking account. Some do, but it is rare and usually only if you close within a certain period of opening (often 90 days to six months). Check your account agreement or call the bank to ask before you close.
If there is a fee and you did not know about it, ask the bank to waive it. Many will, especially if you have been a customer for years. If they refuse and you believe the fee is unfair, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), though this will not reverse the fee when ready.
The timing: when to close after opening a new account
The safest approach is to open your new account, move your direct deposits and automatic payments over, and then wait a month before closing the old one. This gives you time to catch any charges that still pull from the old account. Once a full billing cycle has passed and nothing unexpected has cleared, you can close with confidence.
If you need to close when ready — because you are switching banks and want to be done — at least spend an hour updating every automatic payment you can find. Call your employer's payroll department to confirm the direct deposit has switched. Check your credit card and loan statements to see if any are still pulling from the old account. The more thorough you are, the less likely you are to be surprised.
How to close the account
Most banks let you close an account online through their website or app. Log in, find the account settings or customer service section, and look for a "close account" or "close this account" option. You may be asked why you are closing (this is optional to answer) and whether you want the remaining balance mailed or transferred. The process usually takes a few minutes.
If you cannot find the option online, call the bank's customer service number on the back of your debit card or on their website. A representative can close it over the phone in a few minutes. You can also visit a branch in person, though this is slower and unnecessary unless you want to withdraw cash at the same time.
After you close, you should receive a confirmation email or letter. Keep this for your records. If you ever need to prove the account is closed — for example, if a charge tries to post months later — you have documentation.
Frequently Asked Questions
Will closing a checking account lower my credit score?
No. Banks do not report checking accounts to credit bureaus, so closing one has no effect on your credit score. Your score only changes if you miss a payment on credit you actually owe, like a credit card or loan.
What if I close the account and then a bill tries to charge it?
The charge will fail because the account no longer exists. The merchant will either retry it on a different payment method on file, or contact you asking for a new one. If they report the missed payment to a creditor, contact them when ready to explain the account was closed and provide a new payment method. Most will reverse the report once you pay.
Can the bank keep my money if I close the account?
No. Any balance in the account is yours. The bank must return it to you by check, transfer, or cash withdrawal. If you close and forget about a balance, the bank holds it and you can reclaim it later, though some states will eventually move it to unclaimed property if you do not claim it within a few years.
How long does it take to close a checking account?
Online or by phone, usually five to fifteen minutes. The account closes when ready, though it may take one to two business days for the system to fully process the closure and any remaining balance to be transferred or mailed to you.
Should I close my old account right away or wait?
Wait at least a month. This gives you time to catch any automatic payments or charges you missed when switching. Once a full billing cycle has passed with no surprises, close it. If you need to close when ready, spend time updating every recurring charge you can find first.