How to Get Money from a Closed Bank Account | Full Step by Step Guide


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Many things in life can infuriate you. Being broke is at the top of the list, accompanied by being deeply in debt and having your money locked somewhere farther down the list. Imagine possessing a large sum of money in a bank account that has been closed. An event like this might be aggravating because fixing the problem takes time and effort. You’d be concerned if someone sent money to an account you’d canceled. You’ll also need to know what to do. Thus, we have covered how to get money from a closed bank account in this article.

Many accounts are closed every day by their separate owners around the world. People enjoy taking their money out of their accounts and closing them, especially when treated unfairly by the bank. Other causes for account closure include poor service, personal factors, fraudsters, unlawful transactions, and so on. You must also notify your friends, business associates, workplace, and family members that you will be canceling your account.

Closing your account without alerting friends, relatives, employers, and others could backfire. Consider the scenario in which a long-distance buddy sends a large sum of money to your defunct bank account. What method would you use to obtain the funds?

What if your friend chooses not to inform you of the good deed? Alternatively, your acquaintance may have forgotten to inform you. The cash may decay or bounce back depending on where they are.

What happens if Money is sent to an Account that has Been Closed?

How to Get Money from a Closed Bank Account

Your friend agreed to send you money on your birthday as a surprise. He locates your account information and deposits funds into it. However, unbeknownst to this friend, you terminated the account two days earlier and failed to notify him. Your friend phones you a few days later to see if you received the money. It occurred to you at that point that your friend had probably transferred the funds to your closed account. What will happen to the money now is the main question.

Money transferred to an account that has been closed will not be deposited. Instead, the funds will bounce and be returned to their source. In such cases, the bank may decide to keep the money. When you close an account, it can no longer receive or send money.

As a result, any monies delivered to it will hit a massive concrete wall, and as you may know, anything that hits a massive concrete wall must bounce back. So, the money will either be paid back to your friend’s account or held by your bank in the instance above.

How to Get Money from a Closed Bank Account

How to Get Money from a Closed Bank Account

Money can be retrieved from a closed bank account, but there are processes for doing so. Having a bank account has its own set of advantages. For example, you may save your funds in one place while also generating additional cash through savings interest.

Other advantages of having a bank account include investing in a term deposit, opening company current accounts, and so on. People will even open multiple accounts to take advantage of different benefits from each account.

But what if your account is frozen or closed as a result of bankruptcy? What happens if you transfer funds to a bank account that has been closed? Is it possible to get money back in such a situation?

All of these scenarios are extremely risky, and people should be aware of them. Let’s look at how we can deal with these scenarios and get our money back.

Why does your Money get stuck?

Why does your Money get stuck?

Your money may become stuck at the bank for a variety of reasons. These are some of them:

A frozen bank account

The most common reason for your money to become stuck is because your bank account has been frozen. When the bank discovers that there are issues with your account, it will usually block it. The bank prevents you from doing certain things by blocking your account.

For example, although you can deposit funds into your account, you are not permitted to withdraw funds. In other words, your money is locked up in the bank until your accounts return to normal.

The account has been closed.

Your money will be stuck in your checking account if it closes due to insolvency or if you forget to withdraw money before closing it. However, even if you close your account, you may still be able to withdraw funds up to the permitted maximum.

Inactive account

In any case, if your account is inactive or dormant for an extended time, the banks will transfer your funds to a designated account. When it comes to addressing inactive accounts, each bank has its procedure. If you are unsure, check with your bank; it is also a good idea to check before setting up an account there.

How to Get Money from a Closed Bank Account: Steps

How to Get Money from a Closed Bank Account: Steps

We’ve already gone through some of the factors why your money can be locked in your bank account. What should a client do if he or she wants to withdraw or claim their funds? You can receive your money back in the following ways:

Open the bank account that has been frozen.

As previously stated, your account may be frozen by the bank for various reasons, including the suspicion of fraudulent behavior, court orders, unpaid debt, or the use of funds for unlawful work. It will take some time to unfreeze your account if it has been frozen due to legal issues. If your account is restricted for any reason, including suspected fraud, you must contact your bank and give proper identification proof. Your account will be free, and you will be able to withdraw your funds once you have been cleared of any connections to illicit practices.

Withdrawing funds from a personal account that has been closed

Many users make the error of not withdrawing funds from a bank account that has been closed. You must move your funds to your most recent account before terminating the bank account. However, make sure you maintain a minimum balance needed by the bank.

Otherwise, you will be charged bank fees. You can even end up moving your funds to a defunct bank account. The transaction will not be approved in this scenario, and you should receive a refund. In some situations, depositors may be covered if the bank goes bankrupt.

Recovering unclaimed funds

The financial institution will transfer your unclaimed deposits if your account has been inactive for a lengthy time. That isn’t to say you won’t be able to get your money back. However, you will be required to file a claim form, a know your customer (KYC) form, and provide deposit receipts or simply your passbook.

Once the bank has received all of your identity and account evidence, they will credit your account with the unclaimed deposit, which you can then collect. However, please verify with your bank to find out how they handle dormant accounts.

Frequently Asked Questions

How long does it take to get money from a bank account that has been closed?

Although each bank has its procedures, some sources estimate that monies will repay in 5 to 10 days. If the account owner is in good standing, funds are more likely to be modified quickly.

What happens to the money in a bank account that has been closed?

Your bank may inform you that your account has been closed, but it isn’t compelled to do so. On the other hand, the bank is compelled to restore your funds, less any outstanding fees or charges. The money will most likely return in the form of a check.

What happens to the money paid to an account that has been closed?

Money transferred to an account that has been closed will not be deposited. Rather, the money will bounce and be returned to its source. In some cases, the bank may keep the money until you make a formal request for it.

If an account is closed, how long can a bank store a direct deposit?

The bank’s policy will influence this. Thus there may be some variations depending on which bank the account was with. However, in most circumstances, they will reimburse the money within 4 to 10 days.

Is it possible to gain access to a bank account that has been closed?

Yes. If you handled part of your bank activities online, you might have internet access to a recently shut down account. If you are still registered for web access, some banks will allow you to view closed accounts for some time. In addition, you can read and print your statements without paying a fee if they are accessible.


In conclusion, people shut down their accounts for a variety of reasons. It could be a matter of preference for some. They most likely opted to change banks and terminate the former. Others may be affected by concerns such as hacking, fraud, illegal transactions, and so on. Now, if you decide to shut your bank account for whatever reason and have a large quantity of money in it, how do you get it out? The tips on how to get money from a closed bank account will be indispensable for you at this point.

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