Can I close my bank account over the phone?

In most cases, you can close a personal or business bank account over the phone. In fact, this is the one of the best ways to ensure you’ve closed an account properly.

By speaking to a banking representative, you can capture and close out any pending transactions, or interest owing/payable on the account being closed. In the instance where the account is a joint account, or you have multiple bank accounts you want to close, your bank may send you a form that you need to fill out and return. 

Either way, you would be advised over the phone of the steps you need to take. Calling your bank ahead of closing an account is often a smart course of action.

Ways you can close a bank account?

Depending on the customer service provided by your bank, there are a few common ways to close a bank account.

• Go into a branch and speak to a representative directly
• Close the account over the phone
• Close the account through the online banking platform
• Close the account through the banking app

However, there are some factors you will need to ensure you’ve completed before you close an account to protect yourself from fees or late payments from other service providers.

What to do before you close your bank account

Before you pick up the phone to close your bank account, consider running through this checklist:

1. Choose your new bank account – Take time to research your new bank account and make sure it’s the best fit for your goals and budget.
2. Cancel any scheduled or recurring payments – Look at your list of scheduled or recurring payments and make sure to cancel these. You will need to update these for your new bank account.
3. Update your direct debit details with creditors – If you have a credit card, home loan, personal loan, or any other form of credit, you may need to advise your creditors of your new bank details for payment.
4. Contact your employer, or any other payees – You will also need to advise your employer, utilities providers, or anyone else that you regularly pay off your new bank details.
5. Export your payee address book – Don’t forget to grab the details of your payee address book before you close your account.
6. Transfer the balance of your account to the new bank account – It can be worthwhile leaving an extra $100 in the account just in case you missed switching details with creditors or payees.
7. Close your account – Once all payments have been resolved and your balance has been transferred, you may close the account safely.

Can I close a bank account with pending transactions?

You can close a bank account with pending transactions. But after the account is closed, any incoming transactions will be declined by your (old) bank.

The best way to ensure this doesn’t occur is to either wait to close your account until all pending transactions are complete, or contact the creditor and supply them with alternate bank details.

If you’re unsure whether you have any scheduled transactions, you can speak to a banking representative over the phone or via online support. In most cases, your bank withholds the amount owing for pending transactions (such as online purchases).

As the pending amount is deducted from your bank balance, you can close your bank account and the purchase will be honoured.

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