How to Write a Letter to Close a Bank Account

Closing a bank account often involves various methods, from in-person visits to online requests. However, a formal letter remains a reliable and often preferred approach for many financial institutions. This method provides a tangible, written record of your request, establishing a clear paper trail for the account closure process.

Preparing Your Account for Closure

Before drafting your account closure letter, take preparatory actions. Begin by reducing the account balance to zero or a nominal amount, as some banks might require a small balance to remain until final closure. You can transfer funds electronically to another account or withdraw cash, depending on your preference and the bank’s policies.

Update or redirect any direct deposits and automatic payments linked to the account. For direct deposits, such as salary or government benefits, contact the payer to provide new account information. If a direct deposit is sent to a closed account, the funds are typically returned to the sender, which can cause delays. Similarly, automatic bill payments and subscriptions need to be updated with your new banking details directly with each service provider to avoid missed payments or late fees. Allow sufficient time for these changes to take effect before initiating the account closure.

Check for any outstanding checks or pending transactions. Waiting for these transactions to fully process prevents potential complications, such as overdrafts or returned items, which could delay the closure. Some banks may also charge an early account closure fee, typically ranging from $5 to $50, if the account is closed within a short period, often 90 to 180 days of opening. Reviewing your bank’s fee schedule can help you understand any such policies.

Essential Details for Your Letter

The account closure letter requires specific information to ensure your request is processed accurately. Include your full legal name and current mailing address at the top of the letter. Provide current contact information, such as a phone number and email address.

State the full legal name of the bank and, if applicable, the specific branch address where your account is held. The letter must identify the account type, such as checking, savings, or money market, along with the complete account number(s) you wish to close. Include the current date on the letter.

Within the body of the letter, include a clear statement of your intent to close the specified account(s). Provide instructions for handling any remaining balance, such as directing the bank to transfer funds to another specified account (including its routing and account number) or to mail a check to your address on file. Request written confirmation of the account closure.

Composing Your Account Closure Letter

When composing your account closure letter, adopt a formal business letter format. Begin with your contact information, followed by the date, and then the bank’s name and address. A polite salutation should precede the body of your letter.

The opening paragraph should state your intention to close your bank account, referencing the account type and number. Subsequent paragraphs can detail instructions for handling any remaining balance and request a written confirmation of the closure. Maintain a clear, concise, and polite tone throughout the letter.

Ensure all essential details gathered earlier are transcribed into the letter. Double-check account numbers, addresses, and other identifying information. Before sending, make a copy of the completed and signed letter for your records.

Submitting Your Letter and Follow-Up

For submitting your account closure letter, using certified mail with a return receipt requested is highly recommended. This service provides proof of mailing and delivery, along with a signature confirmation, creating a verifiable paper trail for your request. Certified mail typically ensures your letter reaches its destination within a few business days.

Once your letter has been submitted, monitor your account to confirm the closure. Processing times can vary, but banks generally process account closure requests within a few days to a few weeks, especially if all preparatory steps were completed beforehand. You should expect to receive a confirmation letter from the bank indicating that the account has been successfully closed.

Retain all documentation, including your certified mail receipt, tracking information, and the copy of the letter you sent. If you do not receive confirmation within a reasonable timeframe, typically 7 to 14 business days after delivery confirmation, contact the bank’s customer service. Be prepared to provide your mail tracking number and the date of submission to inquire about the status of your request.