Can You Cancel Your Bank Accounts?
If you find that the bank account you currently have no longer meets your needs, you can close that account and use the money elsewhere. But before you can close that account, you need to suspend any direct deposit and automatic payment transactions you might have in place.
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Direct Deposit
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If you have any direct deposits going into your account, you need to make sure those direct deposit transactions are stopped before you close your account. If you close your account before those direct deposits are stopped, the deposit will bounce back to the payer, and it can be difficult to get things sorted out. Contact your employer to suspend the direct deposit or move it to another bank, but keep in mind that it an take up to two pay periods for the change to go through. You will need to keep your account open until the direct deposit change has been completed.
Automatic Payments
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Many account holders have their bills automatically paid from their bank accounts. If you have any automatic payments set up from your bank account, you need to make sure you stop those payments before you close the account. It can take a month or two for those automatic payments to be stopped, so you might need to wait a little while to close your account if you have one or more automatic payments coming out of the account.
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Leftover Checks
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Be sure to destroy your current stock of checks after you close your account. It is best to shred the checks, rather than simply throwing them away. You can also give your old checks to the bank when you close your account, and it can shred those leftover checks and keep them from falling into the wrong hands. You should also destroy any ATM or check cards you have that are linked to that old account. Also make sure you don't have any outstanding checks that have not yet cleared.
Moving Your Money
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Once you close your existing bank account, you will need to move your money elsewhere. It is a good idea to look around for a better deal than the one you currently have before you close your existing account. That way you can have a new checking or savings account lined up and ready to go, and you can take the money you withdraw from your old account and move it right to the new one.
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References
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