Facebook Email icon An envelope. It indicates the ability to send an email.
Email Twitter icon A stylized bird with an open mouth, tweeting.
Twitter LinkedIn icon
LinkedIn Link icon An image of a chain link. It symobilizes a website link url.
Copy Link lighning bolt icon An icon in the shape of a lightning bolt.
Save Article Icon A bookmarkAffiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.
Involuntary bank account closures often occur when a financial institution detects unusual activity in a bank account — or there's no activity at all. Unfortunately, closures can happen without warning.
If a bank has closed your account, here are steps to take to resolve potential issues, recover your money, and avoid this situation in the future.
A bank may decide to close your savings or checking account under any of the following circumstances:
Below, are two immediate steps to take if handling an unexpected bank account closure.
A bank can close your account without your permission. If you notice your bank account has been closed or you received a message from the bank notifying you of a closure, follow up with a call to find out the cause.
If you have a negative balance in the account, ask how you can pay it off. If you don't settle it, the unpaid fees may be reported to a collection agency and negatively impact your credit score.
If you have a positive balance, ask the bank how you can receive the funds safely and quickly. You may get a cashier's check and be sent on your way.
Be sure to redirect your paychecks to a different bank account and stop any recurring deposits or online bill payments connected to the closed account.
Unfortunately, an involuntary bank account closure can affect you when you open accounts in the future.
Banks review your checking account history when you apply to open a bank account. If a past account had significant unpaid fees, consumer reporting companies like ChexSystems can pass this information on to new financial institutions where you might not be able to open a new account.
According to the Consumer Financial Protection Bureau (CFPB), this may affect you for up to seven years after your bank account is closed.
If your account was closed due to identity theft or another circumstance that wasn't your fault, you'll need to resolve this issue so that it doesn't affect future accounts. Review your checking account history by reaching out to ChexSystems for a report, and follow the instructions to dispute any errors.
If you're unable to resolve the issue, you can send a formal complaint to the organization that regulates your bank.
Once a bank account is closed, it usually can't be reopened. You'll have to open a new bank account with your institution or bank somewhere else.
Some banks have second chance bank accounts, which allow you to open a bank account regardless of whether you have a negative banking history. Second chance banking can be a way to rebuild banking relationships after a closure.
When you open a new bank account, monitor it to ensure you don't wind up in the same situation again. Here are a few tips to maintain your new bank account so that it isn't closed by a financial institution.
Why would a bank close my account? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Involuntary bank account closures are often due to inactivity, suspected fraud, excessive overdrafts, or failure to meet minimum balance requirements.
What should I do immediately after my bank closes my account? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Contact the bank to find out the cause of the account closure and how to receive your balance. If you owe the bank money, pay it as soon as you can; unpaid balances may be reported to a collection agency.
Can I dispute the bank's decision to close my account? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Banks can close an account without getting permission or notifying the customer. If you believe the account was wrongfully closed, you can file a formal complaint with the Office of the Comptroller.
How can I find a new banking institution after my account is closed? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
If your account was closed due to inactivity, you may be able to reopen it. If you're looking for a new bank, pay attention to fees, account requirements, and accessibility.
What steps can I take to prevent future account closures? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
Keep your account active by setting up direct deposit, avoid repeated overdrafts, and notify your bank of large or unusual upcoming purchases, especially those involving cash.
Western Alliance Bank High-Yield Savings Premier Earn 5.31% APY on your entire account balance – more than 10 times the national average
