Finance Globe Blog

U.S. financial and economic topics from several writers.

3 Reasons to Close a Bank Account

3 Reasons to Close a Bank Account

Some people have one bank account, but others have many. If you have multiple accounts, there may come a point when you realize that one or more is no longer doing you any good. At that point, you have a decision to make: will you close the account?

Here are three reasons to close a bank account:

1. Too many fees. This has nothing to do with how you use the account, but everything to do with saving money. For example, some banks charge a monthly maintenance fee if you don’t make a particular number of deposits and/or meet the balance threshold.

Why continue to pay one or more monthly fee when you can simply close the account and use another?

2. Inactive. If you don’t use a particular account it is likely that you don’t need to keep it open. This is particularly true if it is costing you money every month.

Review all your accounts to determine which ones are used regularly and which ones sit dormant. At this point, you can decide if one or more of your accounts should be closed for good.

3. Causing trouble with your budget. The more bank accounts you have the more work it takes to manage your money. You are constantly moving funds around, ordering checks, and trying to juggle your books. If you struggle to keep up with multiple accounts, close the ones you don’t need and stick with the ones that are essential to your financial well being.

These are just three of the many reasons to close a bank account. If you find yourself dealing with one or more of the situations above, consider your options and then decide what to do next. It may not be an easy decision to make, but closing an account could be best for you and your money. 

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Comments 1

Frank on Wednesday, 16 September 2015 09:00

I would like to emphasize point 3. I have helped many people organize their finances, and people feel hopeless because their finances are so disorganized. Once you organize them eliminating duplicate accounts and streamlining your finances, people will be able to look at their financial situation and find areas of improvement. If you have multiple bank accounts, but don’t really need multiple, I would definitely recommend consolidating into 1.

I would like to emphasize point 3. I have helped many people organize their finances, and people feel hopeless because their finances are so disorganized. Once you organize them eliminating duplicate accounts and streamlining your finances, people will be able to look at their financial situation and find areas of improvement. If you have multiple bank accounts, but don’t really need multiple, I would definitely recommend consolidating into 1.
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Tuesday, 21 February 2017