Is there a fee for closing a Chase bank account? Many people usually ask this question today. Thus, we have made this post to help you. Eliminating a Chase bank account is equivalent to ending a relationship. It may take longer and be more complex than you anticipate initially.
Even if you believe you and your bank have broken up, the jilted bank may refuse to agree and reopen your account without informing you, leaving you subject to increased fines. As you break links with your previous account, the most major problem will be electronic banking.
Automated repayments and deposits are helpful, making moving banks more complicated since you must reroute them to your new account. If you desire to cancel your account, you’ll still need to complete the procedures below, but no rerouting is required.
We don’t want your bank separation to turn out like something out of a horror movie. As a result, we’ve gathered some guidelines below to assist you with closing your Chase bank account and appropriately recording any closure expenses.
Is there a Fee for Closing a Chase Bank Account?
When canceling a Chase bank account and migrating to a different bank, innovative preparation might help you avoid costs. However, if you’re canceling a new account, there may be a price involved with doing so.
If your bank officially opens your dormant account because of obstinate automated transactions you attempted or forgot to disable, you might face a more significant list of charges.
It’s crucial to note that, unlike canceling a credit card or line of credit, which may impact your credit score negatively, shutting your Chase bank account, has no impact on your credit score.
Below is a highlight of some possible fees when closing a Chase bank account:
|Fee||Cost||The possible reason for the charges|
|Fee for Early Account Closure||$5–$60||You terminate your account before it reaches its maturity date (e.g., 180 days).|
|Fee for overdraft/NSF||$30-$40||After you terminate your account, any unanticipated automatic payments and/or checks that bounce.|
|Fees for stop payment||$25–$35||During the process of moving bank accounts, you prevent an outstanding check from clearing.|
|Fees for monthly maintenance||$1-$15||You keep your previous account active with a balance underneath the minimal daily requirement while you move to your new bank.|
|Fees for wire transfer||$20–$40||You ask for the leftover money from your previous account to be transferred to your new one. A wire might be charged a fee by both the sending and receiving bank.|
How to Close a Chase Bank Account
Eliminating a Chase bank account needs additional forethought since automatic transactions may need to be redirected. Please join us!
Step 1: establish a new banking relationship.
If you haven’t already done so, the first step in canceling a Chase bank account is to create a new one so that automated transactions may continue uninterrupted.
If you need a reminder on how to create a checking account, a little online research will assist you in choosing the perfect account for you, when you’re doing your comparison shopping, pay close attention to each account offer, mainly if you’re leaving your present bank because of discontent.
Step 2: Redirect your automatic payments and direct deposits to your new account.
Examine your financial records from the last 12 months and make a note of every automated transaction, noting when it’s generally due or deposited, as well as the amount. Because certain transactions are uncommon, a year’s worth of bank statements is required.
If you no longer desire your magazine subscription, for example, don’t expect your bank to deny the payment after you close your account. Banks could revive dormant accounts if automated payments were not properly cut off earlier. This is in addition to any late fees imposed by the biller.
It would help if you were on the lookout for three types of transactions:
Payments made using your bank’s online bill payment system: It takes two steps to reroute these funds. You’ll need to switch off these payments in your old account after you’ve scheduled them in your new account. You run the danger of sending duplicate payments if you don’t.
Payments made elsewhere deducted automatically from your account: You can have an automated payment for a vehicle loan or a mortgage. Don’t forget about modest expenses like a Netflix subscription or transport passes that regularly reload when the balance falls below a certain level. Supply the biller with your new bank account information to make these payments.
Direct deposits of your salary or Social Security payments: You may need to complete additional documentation and present a voided check to transfer items to your new account.
Some billers demand a long lead time (e.g., 30 days). Keep your current account active with sufficient money until the latest transactions have cleared.
Step 3: Put your old account in a dormant state.
Stop using your previous account, leave it open for a month or two, and leave some cushion money (e.g., $100) to prevent unwanted surprises. If you can afford it, it’s best to do so since it will cover any unexpected auto transactions that you, your bank, or the biller failed to deactivate correctly.
Also, ensure you have enough money to meet the minimum balance requirements to avoid paying a monthly account maintenance charge.
Step 4: Permanently close your account
It’s time to cut connections for good after you’re sure that all electronic transactions have ceased. If you wish to cancel your account, let your bank know. Simply lowering your account balance to zero will not terminate it immediately.
Unless your bank is solely online, in which case you won’t be able to close an account in person, you’ll be able to close an account in one of the numerous methods. This is contingent on whether it has sufficient finances and is in good standing.
You may be able to terminate your account online if there is no money in your account and you do not owe any fees to your bank. You may also contact customer support or send a letter using a template.
If you have some cash in your account, your bank will deduct any costs and ask you to collect the remaining money using the same methods described above or in person, depending on your bank.
You have the option of getting your refund in the form of a cashier’s check or a wire transfer. This takes one to two trading days to complete (wire transfers usually are quicker, but they are much more expensive). Keep in mind that if your account has got a significant balance, you may have to wait longer for your refund.
If your account has a negative value, you won’t be able to cancel it until you get it back to zero and pay the costs that come with it. Your bank may cancel your account if you don’t pay these back within a decent length of time. It’s also possible that they may send the account to a collection agency, which would harm your credit score.
Step 5: Obtain written confirmation.
Request a formal letter from your bank detailing the specifics of your account closure. Keeping a paper trail can aid you in your financial life — as well as your case if you ever need to utilize the letter in a dispute.
Step 6: Go through your last bank statement with a fine-tooth comb.
Due to the increased vulnerability of sensitive personal and financial data to identity theft these days, you should carefully verify your most recent bank statement to ensure that you made no illegal transactions before closing your previous account. Otherwise, if you don’t identify a transaction on your account, call your bank right once.
Keep an eye out for future contact from your previous bank, particularly the first 45 days after you close your account. Many banks will instantly revitalize your account if you disable an automated payment correctly.
This is also possible if a biller fails to respect a computerized payment termination. The account becomes a “zombie account,” as the term implies when this occurs. Having the confirmation mail on hand might be beneficial in this situation.
Frequently Asked Questions
Is there a fee for closing a Chase bank account?
No. There is no cost for closing a bank account with Chase. One exception is that you will incur an early account closure fee if you shut an account shortly after you open it. Other costs, such as those mentioned above, maybe incurred.
How can I terminate my Chase bank account without paying a charge online?
You may be able to terminate your account online if there is no money in your account and you do not owe any fees to your bank. You can accomplish this by communicating with your bank’s banking network.
Is closing a Chase bank account a bad idea?
No. Closing an account might save you money on yearly fees or lessen the risk of fraud. However, canceling the improper accounts might hurt your credit score. Before you terminate accounts to enhance your credit score, check your credit reports online to discover the status of your funds.
In conclusion, closing a chase bank account usually comes with various steps. And if you desire to do this without paying any fees, the tips highlighted above will aid you immensely.
I am Lavinia by name and a financial expert with having a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.