Open Your New Account

First, you want to open your new checking account. This will ensure that you have an account in place when you start moving over direct deposits, debits, and other payments. When choosing a new bank, be sure to consider its proximity to your home (or ease of online banking), account minimums and fees, or additional accounts that you may want to pair with your checking account, such as a savings account or even a money market account or certificates of deposit (CD).

Allow All Charges to Clear

Next, you’ll need to stop using your checking account for payments, and allow all existing charges to clear completely before you close the account. Be sure to check online to see which transactions are still outstanding. It also helps to keep a running balance or scrutinize your check register from the checkbook for your account so that you know what has cleared and what’s still outstanding.  Next, cancel all automatic payments you have set up through your old account; the last thing you want is an automatic payment to go through on your old account and get hit with overdraft fees or worse, the payment not go through. This may take a billing cycle or two, so you may have to manually pay some bills in the meantime. 

Move Your Money

The next step you should take when closing your account is to transfer your money from your old checking account to your new checking account. Again, be extra mindful of any pending charges on your old account, so you don’t overdraft the account or incur any fees. Also, be sure to see whether your old bank has a transfer limit, as many banks limit the amount you can transfer or withdraw at one time. Once everything has cleared your account, you’re ready to close it. If you do not go in person you will need to write a letter requesting that the bank close your account. Important items to include are your name, address, and account number. You can also request to have a letter sent to you to confirm that your account has been closed.

Another important step to take when closing your checking account is to ensure that any related accounts are closed since many checking accounts offer a free savings account. You can request that additional accounts are closed in the same letter you use to close your bank account.

Destroy Your Checks and Debit Card

It’s also important that you take steps to avoid accidentally using the old checks or debit card, or having someone use them fraudulently. Once you have requested your account to be closed, shred any remaining checks and cut up your debit card. Be sure the shreddings are disposed of properly. You may even want to take advantage of your town or city’s shred day, during which citizens can safely shred and dispose of sensitive documents.

Keep Records on File

When you receive your confirmation letter that your account has been closed, keep the letter on file with your account information for a few years. You’ll want to keep this on hand for a few years in case of fraudulent activity on your old account.

Final tips:

Open your new account before you close your old account. This allows you continued access to your money. It is also helpful if you are moving, so you can continue to have access to your funds to pay movers, rental cars, and other related costs during the move.Be sure that you stop all direct deposits such as your paycheck, automatic transfers to savings, and withdrawals from your account. You should do this about a month before you close your account. These include things like gym membership fees, insurance payments, and other household bills.When you look for a new account, consider the minimum balance requirements and fees that you may incur at your new bank. Also be sure to educate yourself on withdrawal and transfer limits.